Tesla HR Managers Allege Retaliation After Reporting Workplace Race Discrimination

California workplaces are supposed to be environments where employees can raise concerns about discrimination or harassment without fearing for their jobs. State law is clear; workers have the right to speak up about unlawful treatment and expect their employer to take complaints seriously. In reality, the process doesn’t always work as intended. 

A recent lawsuit against electric carmaker Tesla shows how quickly those protections can unravel. Filed in the U.S. District Court for the Northern District of California in San Francisco, the case was brought by five former human resources managers and a former security chief at the company’s Fremont factory. They were allegedly fired or forced out of their jobs after validating employee reports of race discrimination, retaliation and other workplace misconduct.

Instead of addressing the reported behavior and what the lawsuit described as “a toxic, racist and retaliatory workplace environment,” management allegedly targeted the HR professionals who were simply doing their job by investigating the complaints. Staff were urged to avoid labeling incidents as race-based, even when the evidence pointed to race discrimination. Tesla told employees to “reframe” them as “motivated by something” else while the company was involved in other lawsuits concerning alleged racism.

According to the complaint, one incident involved an employee threatening a Black coworker with racially charged comments. The HR team investigated the incident and said the worker who made the remarks should be terminated, but Tesla rejected the recommendation. Soon after, the HR manager who supported termination was fired, and others involved said they were either dismissed or pressured to resign.

The lawsuit also describes how a senior HR executive allegedly arranged for terminated HR managers to be escorted out of the factory by security in a “walk of shame.” The plaintiffs claimed this was meant to embarrass them and deter others from speaking up about retaliation or discrimination.

One former manager said she was fired based on unfair claims of poor performance just days after emailing Tesla CEO Elon Musk about what she believed was retaliation. Another claimed he was told to accept a performance improvement plan or resign with a severance package, a choice he viewed as forced.

California’s Fair Employment and Housing Act (FEHA) prohibits discrimination based on race, age, gender, sexual orientation, disability and other protected characteristics. FEHA also makes it illegal for employers to retaliate against workers who report workplace discrimination or participate in related investigations. Retaliation can take many forms, such as demotions, pay cuts, undesirable assignments and creating a hostile work environment that pushes an employee to quit.

The plaintiffs’ accounts also include allegations that go beyond race discrimination. One former security chief at Tesla claimed a “zero tolerance” policy on drug and alcohol use was being misused to punish employees who rejected sexual advances or reported discrimination. He also said he was told to warn new Black security staff that a particular racial slur was part of Tesla’s workplace culture and something they would have to accept. 

California law requires employers to take reasonable steps to prevent harassment and discrimination at work. That obligation includes protecting employees who investigate or report misconduct. HR managers, compliance officers and other staff whose duties involve handling complaints are also covered by these protections, even when reporting is part of their regular work.

The situation described in the lawsuit shows why keeping detailed records can be essential. Emails, memos and written timelines can help connect an adverse action to a protected complaint. Several plaintiffs in the Tesla case point to correspondence with upper management as evidence of the concerns they raised before losing their jobs.

Tesla’s Fremont facility has already faced legal action from the California Civil Rights Department and the federal Equal Employment Opportunity Commission over allegations of racial harassment and retaliation against Black employees. While the current lawsuit is separate, it adds to the ongoing concerns related to workplace culture at the plant.

Workers who believe they have faced retaliation for reporting discrimination or harassment should act quickly. California law has strict filing deadlines, and missing them can limit options for pursuing compensation. Speaking with an employment attorney early can help you identify the right steps and ensure evidence is preserved if you decide to take legal action.

If you have experienced retaliation, wrongful termination or discrimination at work, Erlich Law Firm can help you understand your options for holding your employer accountable. Our Oakland employment lawyers exclusively represent employees and help them resolve workplace disputes. Contact us today for a free initial consultation to learn more.