Tesla accused of favoring visa holders over American workers

In 2024, a proposed class action lawsuit was filed against Tesla in the U.S. District Court for the Northern District of California. The lawsuit claims that Tesla exhibited systematic preference for hiring visa holders, specifically H-1B visa workers, while disproportionately firing American citizens. The plaintiffs, Scott Taub and Sofia Brander, both experienced professionals, allege that they were not hired due to their citizenship status. Taub mentioned being deterred from applying for a position labeled 'H1B only,' while Brander was denied interviews despite her previous contract work with Tesla. The complaint alleges that Tesla's reliance on H-1B visa workers enables the company to pay them lower wages, a practice criticized as wage theft within the industry. It mentions that in 2024, Tesla hired approximately 1,355 visa holders while laying off over 6,000 domestic workers, the majority being U.S. citizens. This has raised significant concerns about discrimination in hiring practices, especially in the technology sector, where skilled labor is vital. Elon Musk, a naturalized American citizen and previous H-1B visa holder, has publicly defended the H-1B visa system, arguing that it contributes positively to the U.S. economy. However, his remarks have attracted backlash, with critics alleging that the system allows companies to import cheap labor, undermining American workers' job security and wages. Musk's comments included personal experiences, suggesting that many successful individuals in the tech industry share similar backgrounds as H-1B visa holders. The lawsuit aims to seek damages for U.S. citizens who applied to Tesla and faced rejection or were unfairly terminated. The legal team, led by attorney Daniel Kotchen, has not elaborated on how they intend to prove Tesla's systemic discrimination in employment practices. Tesla has not yet responded to the allegations, leaving the case's outcome uncertain as it raises critical questions about labor rights and hiring equity in the United States.