The recent settlement between Tesla and former employee Owen Diaz has brought an end to a highly publicized lawsuit that shed light on the carmaker’s treatment of Black workers. The terms of the settlement, which were not disclosed, were agreed upon by both parties, bringing closure to a case that has been closely watched by the public.
Last year, a federal court jury awarded Mr. Diaz $3.2 million after he presented evidence of repeated harassment by supervisors at Tesla’s Fremont factory, including being subjected to a racial slur more than 30 times and a racist caricature drawn near his work station. The jury found that Tesla had done little to discipline the supervisors or address the pervasive racism at the factory.
Mr. Diaz appealed the jury’s decision, arguing that the $3.2 million awarded was insufficient compensation for the psychological damage he suffered. In the first trial in 2021, jurors had awarded him $137 million, but a judge deemed the amount excessive. The second trial focused solely on determining the appropriate amount of damages for Mr. Diaz.
Judge William H. Orrick of U.S. District Court described Tesla’s conduct as “reprehensible and repeated” but ultimately ruled that $3.2 million was adequate compensation. Mr. Diaz’s appeal of this ruling was pending when the settlement was reached.
In court filings, Tesla’s lawyers denied that the company had failed to respond to the harassment, stating that Tesla had clear policies against racially discriminatory behavior. However, they did not provide further comment on the settlement.
The resolution of this lawsuit marks the end of a contentious legal battle and highlights the importance of addressing workplace discrimination and harassment. The details of the settlement may remain undisclosed, but the impact of this case on Tesla’s reputation and treatment of its employees is sure to be long-lasting.
