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should indemnify employee for this reason

Tesla subjected a former black worker to a racially hostile work environment and did nothing to prevent him from being harassed. This was determined by the justice of the United States.

The jury decided that the company co-founded by Elon Musk will have to pay more than US $ 130 million to Owen Diaz for different damages. Díaz worked at the Tesla factory in Fremont, California, during 2015.

As published WSJAfter having access to the file, the Tesla plant called him with racial epithets and left racist images and phrases in the bathrooms and dining room of the establishment.

The factory was Tesla’s only car assembly factory at the time, employing about 9,900 people.

After the verdict, Díaz, 53, said that the decision was for him like lifting “a weight off his shoulder.”

Tracey Kennedy, an attorney for Tesla, said in her closing argument that there was no evidence that Diaz was harassed and that the company should not be held responsible. A good part of the workers of the Tesla factory are not direct employees of that company, but are outsourced through personnel agencies.

Tesla Vice President of Human Resources Valerie Capers Workman wrote in an email to employees on Monday, October 4, that when Diaz complained about the harassment, the company ensured that these agencies took appropriate action.

“Although we believe that these facts do not justify the verdict of the jury in San Francisco, we recognize that in 2015 and 2016 we were not perfect,” he added in the note that was later published in the Tesla blog.

Elon Musk, as of this time, has not made a comment.

The trial focused on three facts:

  • Tesla subjected Diaz to a racially hostile work environment;
  • the company did not prevent him from being racially harassed;
  • and he was negligent.

Tesla denied during the trial that it was aware of the harassing and discriminatory behavior and therefore did not take steps to protect black employees.

Weaknesses in Tesla's marketing: must compensate with 130 million dollars to employee for this reason

The jury found in Diaz’s favor on all claims and ordered Tesla to pay $ 6.9 million in compensatory damages and $ 130 million in punitive damages.

This decision is not a good one for Tesla marketers, which have long struggled with these kinds of difficulties. What is known this Tuesday is the second time in recent months that the electric vehicle manufacturer has been found responsible in a case that involves allegations of harassment or discrimination on the basis of race.

Another former black Tesla worker, Melvin Berry, won a $ 1 million judgment in May 2021 after his supervisors were found to be calling him racial slurs at the same Fremont factory.

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