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Tesla must pay a former worker $137 million for racist abuse

Posted on 10/5/21 at 7:57 am
Posted by Diseasefreeforall
Member since Oct 2012
7369 posts
Posted on 10/5/21 at 7:57 am
quote:

A San Francisco federal court decided that Tesla must pay a former worker, Owen Diaz, around $137 million after he endured racist abuse working for the company, his attorneys told CNBC on Monday. The jury awarded more than attorneys asked for their client, including $130 million in punitive damages and $6.9 million for emotional distress.

Diaz, a former contract worker who was hired at Elon Musk’s electric vehicle company through a staffing agency in 2015, faced a hostile work environment in which, he told the court, colleagues used epithets to denigrate him and other Black workers, told him to “go back to Africa” and left racist graffiti in the restrooms and a racist drawing in his workspace.


Dude didn't sign mandatory arbitration clause when he was hired, maybe because he was a peon, so was able to go to trial. No word whether Tesla will appeal or not. Obviously a double-edged sword with that.

CNBC
This post was edited on 10/5/21 at 8:00 am
Posted by CoachChappy
Member since May 2013
34202 posts
Posted on 10/5/21 at 8:00 am to
quote:

No word whether Tesla will appeal or not.


I would imagine they plan to appeal. $130M is egregious
Posted by RummelTiger
Official TD Sauces Club Member
Member since Aug 2004
93597 posts
Posted on 10/5/21 at 8:01 am to
quote:

No word whether Tesla will appeal or not.


I think we know the answer there...
Posted by stout
Porte du Lafitte
Member since Sep 2006
182064 posts
Posted on 10/5/21 at 8:02 am to
Reason #1,097,871 Elon is moving his businesses out of CA.
Posted by TigahTeeth
Georgia
Member since Feb 2016
6503 posts
Posted on 10/5/21 at 8:02 am to
What if Elon simply said “go frick yourself”
Posted by Hangit
The Green Swamp
Member since Aug 2014
46766 posts
Posted on 10/5/21 at 8:03 am to
Ummm, where do I sign up to get called names and get $130,000,000.?
Posted by CocomoLSU
Inside your dome.
Member since Feb 2004
156504 posts
Posted on 10/5/21 at 8:04 am to
quote:

No word whether Tesla will appeal or not.



I can't wait to see all the other people lining up for lawsuits. In this day in age you can literally claim made-up racism and walk away a millionaire.

(not saying that's what this guy did, just in general that this opens up some major doors for this kind of suit/payout)
Posted by kywildcatfanone
Wildcat Country!
Member since Oct 2012
139289 posts
Posted on 10/5/21 at 8:04 am to
So this really means taxpayers will have to pay this, right?
Posted by stout
Porte du Lafitte
Member since Sep 2006
182064 posts
Posted on 10/5/21 at 8:08 am to
quote:

I can't wait to see all the other people lining up for lawsuits. In this day in age you can literally claim made-up racism and walk away a millionaire.



Tesla squashes their exposure through mandatory arbitration provisions. It's a smart move in a day where an employer can be sued for something some employees say as if you have control over their speech and actions.

What is odd is there are investors pushing for Tesla to end the mandatory arbitration. It even discusses this in the linked article.

quote:

Tesla uses mandatory arbitration to compel employees to resolve disputes behind closed doors rather than in a public trial.

Like other companies that use mandatory arbitration, Tesla rarely faces significant damages or takes deep corrective actions after arbitrators settle a dispute. However, Tesla was required to pay $1 million — as the result of an arbitration agreement — to another former worker, Melvin Berry, who also endured a racist, hostile workplace at Tesla.

A pending class-action lawsuit in Alameda County in California — Vaughn v. Tesla Inc. — also alleges that Tesla is rife with racist discrimination and harassment.

“We were able to put the jury in the shoes of our client,” Alexander told CNBC. “When Tesla came to court and tried to say they were zero tolerance and they were fulfilling their duty? The jury was just offended by that because it was actually zero responsibility.”

A shareholder activist, Nia Impact Capital, is urging Tesla’s board to study the effects of mandatory arbitration on their own employees and culture.

In particular, the Oakland-based social impact fund is concerned that mandatory arbitration can enable and hide sexual harassment and racist discrimination from Tesla stakeholders, ultimately harming employees, dampening morale and productivity as well as weighing on the bottom line.
Posted by GoT1de
Alabama
Member since Aug 2009
5041 posts
Posted on 10/5/21 at 8:08 am to
I think a one million dollar cap on trauma caused by reading graffiti is in order.
Posted by CocomoLSU
Inside your dome.
Member since Feb 2004
156504 posts
Posted on 10/5/21 at 8:09 am to
quote:

However, Tesla was required to pay $1 million — as the result of an arbitration agreement — to another former worker, Melvin Berry, who also endured a racist, hostile workplace at Tesla.

I wonder how mad Melvin is. He got one million, and this dude is about to get $137 million.
Posted by SUB
Silver Tier TD Premium
Member since Jan 2009
25484 posts
Posted on 10/5/21 at 8:12 am to
quote:

colleagues used epithets to denigrate him and other Black workers, told him to “go back to Africa” and left racist graffiti in the restrooms and a racist drawing in his workspace.


I wonder what evidence was presented of this? Sounds fake as hell but I would hope that there would be something solid in order for a judge to rule this way...but $130 million? How the hell does one come up with that? People get way less in wrongful death lawsuits.
Posted by stout
Porte du Lafitte
Member since Sep 2006
182064 posts
Posted on 10/5/21 at 8:14 am to
quote:

I wonder how mad Melvin is. He got one million, and this dude is about to get $137 million.



Well, Melvin signed the arbitration clause as required and still got way more than he should have for hearing some mean words.

I am sure the HR person that forgot to get the $137 million lawsuit dude to sign the arbitration clause was jobless long ago. Talk about a huge mistake.
Posted by tigerpimpbot
Chairman of the Pool Board
Member since Nov 2011
69076 posts
Posted on 10/5/21 at 8:15 am to
quote:

including $130 million in punitive damages and $6.9 million for emotional distress.


Isn’t there an Alabama case on BMW paint that does not permit this type of award?
Posted by LT
The City of St. George
Member since May 2008
5163 posts
Posted on 10/5/21 at 8:15 am to
$137 MM for hurt feelings. This is fawkin crazy.
Posted by stout
Porte du Lafitte
Member since Sep 2006
182064 posts
Posted on 10/5/21 at 8:16 am to
quote:

Sounds fake as hell


Because it probably is. I doubt that any company would allow this to continue to happen without a proper in-house investigation. This stuff is the whole reason HR departments are the size they are now.
Posted by Traveler
I'm not late-I'm early for tomorrow
Member since Sep 2003
26375 posts
Posted on 10/5/21 at 8:23 am to
quote:

The jury awarded more than attorneys asked for their client,

There is the problem right there.
Posted by VolsOut4Harambe
Baw Land
Member since Sep 2017
14370 posts
Posted on 10/5/21 at 8:26 am to
quote:

colleagues used epithets to denigrate him and other Black workers, told him to “go back to Africa” and left racist graffiti in the restrooms and a racist drawing in his workspace.


I'm sure all of this happened.
Posted by mmmmmbeeer
ATL
Member since Nov 2014
10189 posts
Posted on 10/5/21 at 8:27 am to
quote:

I wonder what evidence was presented of this? Sounds fake as hell but I would hope that there would be something solid in order for a judge to rule this way...but $130 million? How the hell does one come up with that? People get way less in wrongful death lawsuits.


This was a jury verdict, correct?
Posted by blueboy
Member since Apr 2006
65274 posts
Posted on 10/5/21 at 8:27 am to
quote:

colleagues used epithets to denigrate him and other Black workers, told him to “go back to Africa” and left racist graffiti in the restrooms and a racist drawing in his workspace.

fricking bullshite. I don't think we've seen a legit case of this yet. It's nothing but fake hate crimes. But. . .
quote:

San Francisco federal court
is going to tard out as much as possible. This is why they were smart to leave CA.
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