A group of former human resources and security employees has filed suit against Tesla Inc., alleging they were fired or forced out for investigating and validating complaints of racial harassment, threats, and other workplace misconduct at the company’s Fremont, Calif., factory.
The complaint, filed in the U.S. District Court for the Northern District of California, claims the electric vehicle maker maintained a hostile work environment for Black and other minority employees and retaliated against HR staff who attempted to address it. Plaintiffs allege they were targeted by senior HR leadership after confirming incidents that violated company policies and state or federal anti-discrimination laws.
The plaintiffs — identified in court records as Linda Peloquin, Adam Chow, Tiara Paulino, Sharnique Martin, Gregory Vass, and Ozell Murray — accuse Tesla of violating California’s Fair Employment and Housing Act and other statutes. They are seeking damages for lost wages, emotional distress, and other harm.
Allegations of racist threats and hostile culture
According to the suit, Black employees at Tesla’s Fremont facility regularly encountered racial slurs, threats of violence, racist graffiti, and symbols such as nooses. One employee alleged a co-worker asked, “Do you want to hang by a tree?” — a statement investigators concluded was a reference to lynching.
The complaint states that when HR investigators, including some of the plaintiffs, substantiated such allegations and recommended discipline, their findings were rejected by senior HR managers. In some cases, the accused employees were retained while the investigators or their supervisors were disciplined or terminated.
The plaintiffs allege that Nicole Burgers, then the senior HR manager at Fremont, and other Texas-based HR leaders instructed staff to “reframe” race-based complaints to avoid documenting them as such, citing the existence of pending lawsuits from the California Civil Rights Department and the U.S. Equal Employment Opportunity Commission.
Claims of retaliation against HR staff
In one instance described in the lawsuit, plaintiff Karen Draper — whose claims were previously settled in arbitration — refused a production manager’s request to terminate a worker on protected medical leave. Draper was later dismissed for “poor performance,” which she contends was a pretext.
Peloquin, another plaintiff, says she was fired after supporting a subordinate’s recommendation to terminate the employee who allegedly made the lynching comment. Chow, who conducted that investigation, claims he was also dismissed shortly afterward.
Other plaintiffs, including Paulino, Martin, Vass, and Murray, allege they faced similar retaliation after challenging decisions that they believed condoned racist or retaliatory conduct.
Musk’s alleged awareness
The filing asserts that Tesla CEO Elon Musk was aware of the high turnover and morale issues within the Fremont HR department and personally intervened in staffing decisions there. Musk allegedly promoted certain HR personnel on the spot during visits and encouraged employees to contact him if his directives were ignored.
Plaintiffs contend that despite Musk’s involvement, retaliation continued against HR staff who documented or acted on workplace discrimination complaints.
The lawsuit seeks compensatory and punitive damages, along with attorney’s fees. None of the allegations have been proven in court.
For more information, see https://storage.courtlistener.com/recap/gov.uscourts.cand.454263/gov.uscourts.cand.454263.1.0.pdf
