California Regulators Reject Tesla Bid to Dismiss Racial Bias Lawsuit
California's Office of Administrative Law denies Tesla's attempt to block a civil rights lawsuit over racial discrimination at its Fremont plant. The automaker still faces a court hearing this week regarding a motion to dismiss the case.
California’s Office of Administrative Law (OAL) denies Tesla’s petition against the state’s civil rights agency, allowing a racial discrimination lawsuit to move forward. Tesla files the petition in June, arguing that the Department of Civil Rights (DCR) uses "underground regulations" by skipping required investigation and mediation steps before suing employers. The OAL rejects this challenge without providing a public reason for the denial.
Legal sources suggest the OAL denies the petition because Tesla submits it too late, as the challenge typically requires filing before the DCR initiates its case. However, the regulatory agency notes that Tesla still pursues its claims directly in court. A California Superior Court judge schedules a hearing for August 24 to consider Tesla's demurrer motion, which asks the court to dismiss the lawsuit based on the DCR's questionable practices.
The DCR originally files this lawsuit in February after receiving hundreds of complaints from workers who describe the Fremont factory as a segregated workplace with racial slurs and discriminatory job assignments. Tesla strongly denies any wrongdoing, but this Fremont plant faces intense ongoing scrutiny as other former workers continue to bring separate racial harassment lawsuits against the electric car manufacturer.