A federal judge in California has permitted a class-action lawsuit against Tesla to move forward, alleging the company favors foreign workers on H-1B visas over U.S. citizens. The suit, filed by software engineer Scott Taub, claims systematic hiring preferences and disproportionate layoffs of American workers. The ruling advances the case to discovery, though some claims were dismissed.
In a decision issued recently, U.S. District Judge Vince Chhabria in San Francisco ruled that Tesla must face allegations of hiring discrimination brought by Scott Taub, a software engineer who filed the lawsuit in September. Taub accuses the electric-vehicle manufacturer of a "systematic preference" for foreign nationals holding temporary work visas, particularly H-1B visas for skilled workers in the technology sector, in violation of federal anti-discrimination laws.
The complaint highlights a specific incident where a recruiter from a staffing firm described an engineering position Taub sought as "H1B only." Taub also alleges that Tesla's 2024 layoffs impacted U.S. citizens more heavily than foreign employees. Judge Chhabria determined that Taub had pleaded "just enough facts" about these hiring practices to survive Tesla's motion to dismiss, allowing the case to proceed to the discovery phase.
However, the judge dismissed claims from a second plaintiff, human-resources specialist Sofia Brander, who asserted similar preferences for foreign workers in HR roles. Chhabria described these allegations as implausible based on the current record and granted Brander two weeks to amend her complaint if she wishes to continue.
Tesla has denied the accusations, labeling them "preposterous" in prior court filings. The company and plaintiffs' attorneys did not immediately respond to requests for comment on the ruling. This case comes amid broader debates over H-1B visa usage in the U.S. tech industry, where such visas are commonly employed for specialized roles.
