A federal judge has ruled that Tesla must defend itself at a trial over allegations it knew foreign workers at its California assembly plant were threatened with deportation if they reported an injury and worked long shifts that violated forced labor laws.
U.S. District Judge Lucy Koh, in San Jose, Calif., dismissed most of the seven claims against Tesla on Monday, but allowed two claims to survive, paving the way for the plaintiffs to seek documents and witnesses to build their case.
The decision comes as Tesla is under pressure to turn a profit and days after CEO Elon Musk agreed to step down as chairman to settle allegations by the Securities and Exchange Commission that he misled investors.
Tesla has been plagued with safety complaints brought by workers, allegations that Tesla denies. Workers say that long hours and pressure to deliver vehicles quickly takes a toll, and some have pushed for a union.
Tesla said it investigated the allegations and broke ties with a subcontractor, ISM Vuzem, that it said did not live up to its expectations. “We’ve also since improved our supplier contracts and policies to better stop bad behavior,” it said in a statement.
According to the lawsuit, Gregor Lesnik of Slovenia came to the United States on a B-1 visa and worked 250 hours per month for less than $950, well below minimum wage. It also alleges that foreign workers were threatened with deportation or reduced pay if they reported injuries or became ill.
The 2016 lawsuit by Lesnik and Stjepan Papes of Croatia seeks class action status on behalf of foreigners with B-1 visas working at construction sites at U.S. auto plants.
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