$137 Million Verdict Awarded to Black Man Subjected to Repeated and Continuous Harassment by Racists at a Tesla Factory Illustrates Importance of Competent Anti-Harassment Policies

From [HERE] On October 4, 2021, a North California federal jury awarded a former Tesla subcontractor $137 million after finding that he had been subjected to a hostile work environment and that Tesla was responsible for the harm it caused. The jury found that the contract employee, Owen Diaz, a Black male, had been subjected to repeated and continuous harassment at a Tesla-owned factory. The jury held Tesla liable as a joint employer with the staffing company that hired Diaz. 

Diaz alleged that he faced repeated and prolific use of the N-word throughout the Tesla factory. He also alleged that Tesla workers had drawn swastikas, written a racial epithet in a bathroom stall, and drawn caricatures of Black children around the factory. A 2018 New York Times article describes Mr. Diaz’s claims in more detail. The article references ten other claims of race discrimination filed regarding the same plant where Diaz worked. Tesla also lost a race discrimination arbitration with one of its employees, Melvin Berry, in which it was ordered to pay approximately $1 million earlier this year. A class-action case brought on behalf of more than 100 Tesla employees alleging race discrimination is still pending. 

In the Tesla case, the jury determined that Diaz was harmed as a result of Tesla's negligent supervision or continued employment of harassing coworkers. The monumental award was decided upon after only 4 hours of deliberation by the jury and was comprised primarily of the $130 million in punitive damages awarded “to get Tesla’s attention.”[1] The verdict demonstrates the importance of compliance with anti-discrimination and anti-harassment laws. The jury’s award punishes Tesla for its failure to take appropriate action regarding the Diaz’s repeated complaints to supervisors regarding the harassment. 

The verdict has drawn the attention of employers around the country who had been focusing their concerns on Covid-19 related ordinances and issues. The case brings a sobering reentry into the discussion of the importance and significant ramifications of failed anti-harassment and anti-discrimination policies and responses.