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The Legal Affair

Let's talk Law

The Legal Affair

Let's talk Law

Tesla ordered to pay more than $3 million to an ex-worker in a racial harassment case

Tesla ordered to pay more than $3 million to an ex-worker in a racial harassment case

Reported By: Amruta Pawar

Mr. Diaz was an elevator operator at Tesla where he alleged that he was being subjected to racial harassment in his work environment for being black and was awarded $ 137 million including punitive damages through a verdict in 2021 as it was held that the company failed to take necessary steps and prevent the discrimination.

However, Mr. Diaz & Tesla sought a retrial to decide damages after the judge reduced the amount to $15 million. The victim reiterated in court that he was subjected to racist remarks by his colleagues that made him feel physically unsafe at work. 

The harassment included racist epithets to denigrate him and drawings mocking his racial appearance therefore requested the court to hold Tesla accountable for failing to stop the discrimination and harassment and reconsider the amount of damages as his civil rights are violated. 

The counsel for Mr Diaz requested the jury to consider punitive damages of around 150 million dollars for Tesla and to award Diaz $ 6.3 million in past economic damages & 2 million dollars in future economic damages.

The jury in the second trial ordered Tesla to pay $ 3 million in punitive damages and $ 175, 000 in non-economic damages. 

Also last week a black service manager at Tesla complained about his harassment by his white manager by filing a lawsuit against the company.

Tesla has been sued a number of times by his former & current employees since 2018 according to a legal database excluding those cases which went for arbitration directly.