by Brad Anderson
- Class action claims Tesla favored visa holders to cut labor costs over Americans.
- Lawsuit says Tesla hired 1,355 H-1B workers while laying off thousands of citizens.
- Plaintiffs allege Tesla refused interviews after learning they did not need sponsorship.
The way Tesla hires and fires its workers is under fresh legal scrutiny. A proposed class action lawsuit filed against Tesla in San Francisco alleges that the automaker has violated federal civil rights law by favoring visa holders over American workers to reduce labor costs. The suit also claims Tesla has fired US citizens at disproportionately higher rates compared to foreigners working at the company.
Alleged Hiring Bias
According to the complaint, Tesla hired roughly 1,355 skilled workers on H-1B visas in 2024 while laying off more than 6,000 U.S. workers, “the vast majority” of whom are believed to have been citizens. Although it remains unclear how the plaintiffs plan to prove the alleged discriminatory practices, they are seeking damages on behalf of American citizens who were rejected after applying for jobs at Tesla, as well as those who were terminated.
Read: Tesla Quietly Settles Unexpected Acceleration Lawsuit In Model Y Fatal Crash
Two plaintiffs are named in the lawsuit. The first, Scott Taub, says he had been dissuaded from applying for one job after being told it was only available for H-1B visa holders, and he did not receive an interview for a second job. The second plaintiff, human resources specialist Sofia Brander, said Tesla would not interview her for two jobs, even though she had twice been a contract employee.
Both Taub and Brander claim Tesla refused to hire them after learning that neither of them would need sponsorship for employment, suggesting that they were US citizens, reports Reuters.
Claims of ‘Wage Theft’
“While visa workers make up just a fraction of the United States labour market, Tesla prefers to hire these candidates over US citizens, as it can pay visa-dependent employees less than American employees performing the same work, a practice in the industry known as ‘wage theft’,” the lawsuit claims.
Tesla CEO Elon Musk himself once held an H-1B visa, and the complaint cites a December 27, 2024 post he made on X voicing support for the program.
“The reason I’m in America along with so many critical people who built SpaceX, Tesla and hundreds of other companies that made America strong is because of H1B,” Musk wrote.