A U.S. judge ruled that Tesla Inc. must face a proposed class-action lawsuit alleging discrimination against American workers in favor of H-1B visa holders. A software engineer filed the suit after being passed over for a position, claiming the company maintains a systematic preference for foreign workers to reduce labor costs.
The judge allowed the case to proceed despite expressing skepticism regarding the plaintiff's ultimate success. The ruling cited specific allegations that a recruiter informed the plaintiff an engineering role was H-1B only.
The lawsuit further alleges that recent Tesla layoffs disproportionately impacted U.S. citizens. Tesla denied the claims in court filings, describing the allegations as preposterous. The company must now formally address the discriminatory hiring practice claims as the case moves forward.