A federal judge in San Francisco has ruled that Tesla must face a class-action lawsuit alleging discrimination against American workers in favor of H-1B visa holders. The decision allows claims by software engineer Scott Taub to advance, though the judge expressed skepticism about their ultimate success. Tesla has denied the allegations, calling them preposterous.
On February 24, 2026, U.S. District Judge Vince Chhabria in San Francisco issued a brief order declining to dismiss a proposed class-action lawsuit against Tesla. The suit, filed in September 2025 by software engineer Scott Taub, accuses the electric carmaker of systematically preferring H-1B visa holders for engineering roles, in violation of federal civil rights law. Taub claims Tesla passed him over for a position after a recruiter from a staffing firm told him the job was "H-1B only," referring to the visa program for highly skilled foreign workers commonly used in the tech industry.
The lawsuit further alleges that Tesla's 2024 layoffs, which affected more than 6,000 U.S. jobs—most held by American citizens—disproportionately targeted domestic workers while the company hired an estimated 1,355 H-1B visa holders that year. Judge Chhabria noted that these figures show Tesla hired a substantial number of visa holders but do not alone prove preference over U.S. citizens. He described Taub's evidence as limited beyond the recruiter's alleged remark but sufficient to let the case proceed, writing that it presented "just enough facts" about Tesla's hiring practices.
The judge dismissed claims from a second plaintiff, human resources specialist Sofia Brander, ruling it implausible that Tesla favors foreign workers for HR roles based on the current complaint. Brander has two weeks to file an amended version with more details.
Tesla, led by Elon Musk, has denied the accusations in court filings, labeling them "preposterous." The case comes amid broader scrutiny of the H-1B program, including a $100,000 fee on new visas imposed by President Donald Trump in September 2025 to deter misuse and protect American workers. The fee faces legal challenges in at least three lawsuits. U.S. Department of Labor data indicates Tesla requested over 2,000 H-1B visas during its 2024 layoffs, representing more than 3% of the annual 65,000-visa cap.
