US Judge Allows Tesla Hiring Bias Lawsuit to Move Forward
A U.S. federal judge has declined to dismiss a lawsuit accusing Tesla of discriminating against American citizens in its hiring practices. However, the judge indicated skepticism about whether the lead plaintiff will ultimately succeed.
U.S. District Judge Vince Chhabria in San Francisco ruled that the case could proceed after finding that the plaintiff had presented sufficient preliminary facts. The lawsuit was filed in September as a proposed class action.
Allegations of Preference for H-1B Visa Holders
The plaintiff, software engineer Scott Taub, claims Tesla rejected his application for an engineering role as part of what he describes as a “systematic preference” for hiring foreign workers on H-1B visas. He argues that this practice violates federal civil rights law.
Taub also alleges that Tesla’s layoffs have disproportionately affected U.S. citizens. According to the complaint, the company hired an estimated 1,355 H-1B visa holders in 2024 while laying off more than 6,000 employees domestically.
Judge Chhabria said the case may proceed based largely on allegations that a recruiter told Taub the engineering position he applied for was “H1B only.” H-1B visas are typically granted to highly skilled foreign workers and are widely used in the technology sector.
Court Dismisses Claims by Second Plaintiff
The judge dismissed claims brought by a second plaintiff, Sofia Brander, who alleged similar discrimination in human resources hiring. The court found it implausible that Tesla would favor foreign workers for HR positions. Brander was given two weeks to amend her complaint and provide additional details.
Tesla has denied the allegations, describing them as “preposterous” in court filings. Neither the company nor the plaintiffs’ legal representatives immediately commented following the ruling.
Broader Debate Over H-1B Visas
The lawsuit comes amid heightened scrutiny of the H-1B visa program. President Donald Trump recently imposed a $100,000 fee on new H-1B visas, arguing that the measure will prevent companies from abusing the system and replacing American workers. The policy is currently facing multiple legal challenges.
While Judge Chhabria allowed the lawsuit to move forward, he noted that the statistical evidence cited by Taub does not, by itself, prove discriminatory intent. Hiring a significant number of H-1B workers does not automatically demonstrate a preference over U.S. citizens, the judge said.
The court acknowledged that the evidence presented so far is limited, leaving uncertainty about how the case will ultimately unfold.
