Tesla has been ordered to pay a former worker $137 million over a hostile work environment.
According to Diaz's attorneys, J. Bernard Alexander with Alexander Morrison + Fehr LLP in Los Angeles and Larry Organ with the California Civil Rights Law Group in San Anselmo, the case was only able to move forward because the worker had not signed one of Tesla's mandatory arbitration agreements.
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.in Alameda County in California — Vaughn v. Tesla Inc. — also alleges that Tesla is rife with racist discrimination and harassment.
A shareholder activist, Nia Impact Capital, is urging Tesla's board to study the effects of mandatory arbitration on their own employees and culture. Institutional Shareholder Services, the proxy advisory firm, recommended shareholders vote for Nia's proposal, noting that Tesla has faced many serious allegations of sexual and racial harassment and discrimination over the years.This year, as it did last year, Tesla's board has advised shareholders to vote against reporting on the impacts of mandatory arbitration on employees.
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