Tesla to defend lawsuit alleging foreign workers were threatened with deportation
A case filed against Tesla in California which alleges the firm knew foreign employees were threatened with deportation has been given the green light to go to trial.
US federal judge Lucy Koh ruled Tesla must defend itself against two of seven claims, in which the plaintiffs argue foreign workers at its Fremont, California plant worked long shifts that violated labour laws, and were told they would face deportation or reduced pay if they fell ill or reported injuries.
Slovenian national Gregor Lesnik, who filed the lawsuit in 2016 alongside Stjepan Papes of Croatia, said he came to the US on a B-1 visa and worked for Tesla at well below the minimum wage, racking up 250 hours per month for under $950 (£730).
The news comes as Tesla chief executive Elon Musk agreed a settlement to his legal troubles with the US securities watchdog over the weekend, which stipulated he must step down from his role as chairman and pay a $20m fine in addition to other measures.
Read more: Tesla shares bounce back following Musk's SEC lawsuit settlement
The suit, which is seeking class action status on behalf of all B-1 visa holders working at automotive factories in the US, was lodged against a number of carmakers however Tesla was the only claim not dismissed from the case.
Tesla said in a statement it had already investigated the allegations and severed ties with a subcontractor, ISM Vuzem, as well as bolstered its supplier contracts and policies.
"As far as the law goes, Tesla did everything correctly," the firm said.
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Koh rejected arguments from Tesla and another contractor, Eisenmann, that the two were not liable because the claims were regarding the actions of Vuzem on Tesla and Eisenmann's behalf, and that both firms benefitted financially from the alleged abuses.
"While we were not aware at the time, we’ve since learned that a subcontractor [Eisenmann] used, ISM Vuzem, was not living up to our expectations," Tesla added.
"Had there been something else we could have done differently or better in this situation, we would have done it."
Tesla has come under fire a number of times over allegations on workers' safety at its US plants, at which production was significantly ramped up over the summer as manufacturers raced to meet Musk's high targets for its Model 3 sedan.
Eisenmann and Vuzem did not respond to requests for comment by Reuters.