The lawsuit alleges that Tesla violated federal civil rights law by prioritizing visa holders over U.S. citizens. A federal judge in San Francisco has ruled that Tesla must respond to a lawsuit accusing the company of discriminating against American workers in favor of foreign nationals who may accept lower wages.
While the court permitted part of the case to advance, it signaled reservations about several of the allegations. U.S. District Judge Vince Chhabria allowed core claims to move forward but expressed skepticism about aspects of the complaint.
In September of last year, plaintiffs Scott Taub and Sofia Brander filed suit against the electric vehicle manufacturer, asserting violations of federal civil rights law and alleging that Tesla systematically favored visa holders over U.S. citizens.
Taub contends he was discouraged from applying for an engineering position after a recruiter allegedly informed him the role was open only to candidates on H-1B visas.
Brander claimed Tesla declined to interview her for two human resources roles because the company prefers foreign nationals for such positions.
The complaint further asserts that Tesla hired approximately 1,355 skilled workers under H-1B visas in 2024 while laying off more than 6,000 U.S.-based employees. Both plaintiffs argue they were denied employment because they did not require sponsorship.
In an order issued earlier this week, Judge Chhabria wrote that “the plaintiffs have pled just enough facts to allege that Tesla discriminated against US citizens,” adding that the allegations are “sufficient to state a claim for discrimination.” This means Tesla’s effort to dismiss Taub’s claims at this stage was unsuccessful.
However, the judge questioned the strength of Taub’s supporting evidence. He described the email exchanges between Taub and Tesla recruiter Max Eleven as “are sparse,” and suggested the recruiter’s statement that the engineering role was “H1B only” may have been made in response to an inquiry from Taub himself.
The court emphasized it is “somewhat skeptical of Taub’s allegations,” underscoring that clearing the motion-to-dismiss stage does not equate to a final determination in the plaintiffs’ favor.
The judge dismissed Brander’s claims, concluding that “it is implausible that Brander, an HR specialist, was passed over for Tesla roles due to her citizenship.” He noted that the lawsuit itself alleged Tesla relies on H-1B visa holders primarily for “specialized roles in engineering, research, and design.”
Brander has been granted 14 days to submit an amended complaint if she intends to continue pursuing her discrimination claim against Tesla.
