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Technology,
Labor/Employment,
Civil Rights

Oct. 6, 2021

Investors want Tesla to stop arbitration mandates

The $137M verdict was issued ahead of an annual shareholder meeting on Thursday in which there will be a vote on a proposal urging Tesla’s board to study the effects that mandatory arbitration policies have had on its failure to address discrimination, harassment and a lack of diversity.

A federal jury's $137 million award to a Black former Tesla contractor who was subjected to racial abuse may prompt the carmaker to consider whether the use of mandatory arbitration agreements have encouraged it to neglect widespread allegations of discrimination and harassment at its Fremont factory.

The decision delivered late Monday capped a one-week trial after just four hours of deliberation in a lawsuit from Owen Diaz, who said he was...

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