Court Orders Tesla to Face Lawsuit Alleging Discrimination Against American Workers
A federal judge in San Francisco has ruled that Tesla must face a lawsuit accusing it of discriminating against American workers in favor of foreign nationals who can be paid lower wages. The case will proceed, although the court has already indicated it is not fully convinced of every allegation. U.S. District Judge Vince Chhabria allowed part of the lawsuit to move forward while openly questioning key elements of it.
Last September, plaintiffs Scott Taub and Sophia Brander sued the electric vehicle giant, accusing it of violating federal civil rights law and claiming that Tesla prefers visa holders over U.S. citizens. Taub alleges he was denied consideration for an engineering position after a recruiter informed him the vacancy was open exclusively to H-1B visa holders.
Brander stated that Tesla refused to interview her for two Human Resources department vacancies because the company prefers to hire foreign nationals for those positions.
The lawsuit also states that Tesla hired approximately 1,355 skilled workers on H-1B visas in 2024, while laying off over 6,000 American employees. Both Taub and Brander claim Tesla refused to hire them because neither required employment sponsorship.
Judge Allows Core Allegation to Proceed
In an order issued earlier this week, Judge Chhabria wrote that “the plaintiffs have alleged enough facts to plausibly claim Tesla discriminated against U.S. citizens,” adding that these allegations “are sufficient to state a claim for discrimination.” Practically, this means Tesla’s attempt to have Taub’s lawsuit dismissed has failed, at least for now.
The judge expressed less confidence regarding Taub’s evidentiary basis. He noted that email correspondence with Tesla recruiter Max Eleven is “sparse,” and suggested the recruiter’s statement that the engineering role was for “H1B only” could have been a response to a question from Taub.
The court stated it is “somewhat skeptical of Taub’s allegations,” reminding that surviving a motion to dismiss is not a victory.
Why Was the HR Job Claim Dismissed?
However, the judge dismissed Brander’s allegations, stating it is “implausible that Brander, an HR professional, was passed over for Tesla HR jobs because of her citizenship.” He noted the lawsuit only alleged Tesla’s use of H-1B visa holders for “specialized engineering, research, and design roles.” Brander was given 14 days to file an amended complaint if she wishes to continue accusing Tesla of discrimination.
This legal case highlights the tense debates surrounding the use of work visas, such as H-1B, in the U.S. tech industry. On one hand, companies often argue they need access to global talent to fill specialist niches. On the other hand, critics claim such practices can be used to depress wages and sideline qualified American workers. The judge’s decision to allow the case to proceed, despite skepticism about specific details, indicates the judicial system recognizes the potential seriousness of such allegations. The further development of this case could have significant implications not only for Tesla but also for the hiring policies of major tech companies overall, especially in the context of mass layoffs and global competition for talent.