San francisco: Tesla, the electric vehicle company led by Elon Musk, is facing a lawsuit accusing it of favoring visa holders over American citizens for employment, allegedly allowing the company to pay lower wages.
According to Radio Television Brunei, the proposed class action was filed in the San Francisco federal court, claiming that Tesla’s hiring practices violate federal civil rights law. The lawsuit argues that the company systematically prefers hiring visa holders and disproportionately fires U.S. citizens compared to those on work visas.
The complaint details that Tesla relies heavily on skilled workers holding visas. In 2024, the company allegedly hired approximately 1,355 visa holders while laying off more than 6,000 domestic workers, the majority of whom were believed to be U.S. citizens. Despite requests for comment, Tesla, headquartered in Austin, Texas, has not responded.
The lawsuit was initiated by software engineer Scott Taub and human resources specialist Sofia Brander. They allege that Tesla refused to hire them after realizing they did not require sponsorship for employment, indicating their status as U.S. citizens. Taub claimed he was discouraged from applying for one position designated for “H1B only” and was not invited to interview for another. Brander reported being denied interviews for two positions despite having previously worked as a contract employee for Tesla.
The complaint describes a practice in the industry known as “wage theft,” where companies allegedly prefer to hire visa-dependent employees over U.S. citizens to pay them lower wages for the same work. The lawsuit references a December 27, 2024, social media post by Musk, who is a naturalized U.S. citizen originally from South Africa and a former H-1B visa holder. Musk stated in the post that he and other critical individuals who have contributed significantly to companies like SpaceX and Tesla are in America because of the H-1B visa program.
The plaintiffs have not yet disclosed how they intend to prove Tesla’s alleged systemic discrimination in hiring and firing practices. Daniel Kotchen, the plaintiffs’ lawyer, declined to provide further comments.
The lawsuit seeks damages for all U.S. citizens who applied for jobs at Tesla in the United States but were not hired, or who were employed by Tesla and subsequently fired. The case is titled Taub et al v Tesla Inc, U.S. District Court, Northern District of California, No. 25-07785.