A federal judge in San Francisco has ruled that Tesla must proceed with a class-action lawsuit alleging discrimination in hiring practices favoring H-1B visa holders over U.S. citizens. The decision allows claims by software engineer Scott Taub to advance, though the judge expressed skepticism about the evidence. A second plaintiff's claims were dismissed but can be amended.
On February 24, 2026, U.S. District Judge Vince Chhabria issued an order declining to dismiss a proposed class-action lawsuit against Tesla. The suit, filed by software engineer Scott Taub, accuses the electric vehicle maker of a "systematic preference" for hiring H-1B visa holders in engineering roles, allegedly discriminating against American citizens.
Taub claims he was passed over for an engineering position because it was designated "H1B only." According to the complaint, a recruiter from a staffing firm informed him that the role was limited to H-1B candidates, visas granted to highly educated foreign workers. Taub also alleges that Tesla's layoffs have disproportionately targeted U.S. citizens.
The lawsuit cites statistics showing Tesla hired an estimated 1,355 H-1B visa holders in 2024 while laying off more than 6,000 domestic workers. Judge Chhabria noted that Taub had presented "just enough facts" for the case to move forward, primarily based on the recruiter's comments, but described other evidence as limited. "All of this causes the Court to be somewhat skeptical of Taub’s allegations," Chhabria wrote in the order.
The judge dismissed claims from a second plaintiff, human resources specialist Sofia Brander, ruling it implausible that Tesla would favor foreign workers for HR positions. Brander has two weeks to amend her complaint.
Tesla has denied the allegations in court filings, describing them as "preposterous." The case highlights ongoing scrutiny of hiring practices in the tech and automotive sectors amid debates over visa programs and domestic employment.
