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Tesla retrial of racial Discrimination case: employee compensation reduced from US $137 million to US $3.2 million

2025-02-14 Update From: SLTechnology News&Howtos shulou NAV: SLTechnology News&Howtos > IT Information >

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Shulou(Shulou.com)11/24 Report--

CTOnews.com, April 4, according to the New York Times, a black former Tesla factory employee in the United States sued Tesla Company for racial discrimination at his factory in California. On Monday, a federal jury in San Francisco awarded Tesla about $3.2 million in damages (CTOnews.com Note: currently about 22.016 million yuan).

The damages are well below the $137 million awarded by another jury two years ago, most of which is punitive damages. A judge at the time later reduced that figure to $15 million, leading to an appeal by the plaintiff, Owen Diaz.

But instead of getting more money, he got less. After a five-day trial, the jury awarded Tesla $3 million in punitive damages and $175000 in past and future non-economic damages.

Mr. Diaz said he suffered repeated racial insults while working at Tesla's factory in Fremont, near San Francisco, in 2015 and 2016. He says one of his supervisors and other colleagues often use racist words, including against him. Employees also wrote down racist words and drew symbols and cartoons in the factory, he said.

Mr. Diaz said the insults hurt him emotionally, which he had reflected to the company, but Tesla did almost nothing. He said he had tolerated these hostile acts until his son started working in a factory and faced a similar experience.

"the ubiquity of the use of racist words in Tesla's workplace shows that they do not care about the feelings of their African-American employees," Bernard Alexander, one of Diaz's lawyers, said in his closing statement at the latest trial. This is an insult to every African-American employee in the workplace.

Tesla's lawyer hinted that Diaz exaggerated the impact and extent of the racial harassment he faced and hoped the jury would reduce the amount of compensation.

Tesla's responsibility for allowing Diaz to suffer racial discrimination at work has been determined in previous trials and there is no need for further trials. The purpose of this trial is only to determine how much compensation Diaz should receive.

According to CTOnews.com, after the 2021 trial, Tesla's head of human resources said the company fired two contractors and suspended another contractor in response to Diaz's complaint. The executive admitted that the company was "imperfect" in 2015 and 2016, but has made great progress since then.

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