Tesla faces new race bias trial from employee who had $137 million verdict cut

 

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Tesla, the electric car maker founded by billionaire entrepreneur Elon Musk, is set to face a new trial in a race bias case brought by an employee who previously won a $137 million verdict that was later reduced.

The case involves Owen Diaz, a former worker at Tesla's Fremont, California plant who sued the company in 2017 alleging racial discrimination and harassment. Diaz, who is African-American and Latino, claimed he was regularly subjected to racial slurs and that Tesla failed to take appropriate action despite being notified.

In 2018, a jury sided with Diaz and awarded him $137 million in damages, one of the largest verdicts in a U.S. employment discrimination case. However, a judge reduced that award to $40 million, finding that the jury had improperly calculated some of the damages.

Now, Diaz is set to go back to trial after an appeals court ruled that there were "questions of fact" as to whether Tesla had adequately addressed his complaints of discrimination. The trial, which is scheduled for March 2022, will be closely watched as it could have implications for other discrimination cases both within and outside of the tech industry.

Tesla has previously denied Diaz's claims of discrimination and harassment, and has argued that it took appropriate action once it became aware of the alleged behavior. The company has also pointed to its diversity and inclusion initiatives, including the establishment of an internal task force to address bias and discrimination.

Regardless of the outcome of the new trial, the case is likely to draw renewed attention to issues of diversity and inclusion in the tech industry, which has been criticized for its lack of representation of women and people of color. Advocates have called for greater transparency and accountability in hiring and promotion practices, as well as stronger protections against discrimination and harassment.