Electric vehicle manufacturer Tesla is facing a proposed class-action lawsuit that alleges the company discriminates against U.S. citizens in its hiring practices, preferring to hire H-1B visa holders to reduce labor costs. The lawsuit was filed on March 15, 2024, in a federal court in San Francisco by two U.S. citizens, software engineer Scott Taub and human resources specialist Sofia Brander. They claim they were denied employment due to the company’s bias towards candidates requiring visa sponsorship.
The allegations suggest that Tesla’s practices violate federal civil rights laws. According to the complaint, the plaintiffs argue that the company’s preference for H-1B workers adversely impacts American citizens, particularly in skilled positions. The lawsuit seeks to represent all U.S. citizens who have been rejected for employment or terminated by Tesla, aiming for compensation for those affected.
The legal filing outlines that in 2024, Tesla hired approximately 1,355 H-1B workers while laying off more than 6,000 U.S.-based employees. This disparity raises concerns about the company’s hiring policies. The complaint states, “While visa workers make up just a fraction of the United States labor market, Tesla prefers to hire these candidates over U.S. citizens, as it can pay visa-dependent employees less than American employees performing the same work, a practice in the industry known as ‘wage theft.’”
Both plaintiffs provided specific examples of their experiences with Tesla’s hiring process. Taub alleges he was explicitly told that one role was “H-1B only,” which led to his exclusion from consideration for another position within the company. Brander, who previously worked with Tesla as a contractor, claims she was denied interviews for two roles despite her relevant experience with the company.
The lawsuit highlights a social media post from Elon Musk dated December 27, 2024, where he referred to the H-1B visa program as “critical” for himself and essential employees at his various companies, including Tesla and SpaceX.
As this case progresses, it may have significant implications for Tesla’s hiring practices and its relationship with U.S. workers. The outcome could potentially affect a large number of individuals, raising questions about the balance between cost-cutting measures and fair employment practices in the technology sector. Tesla has not yet commented on the lawsuit.