Tesla (TSLA.O), opens new tab, the electric vehicle company led by billionaire Elon Musk, was accused in a lawsuit on Friday of favoring visa holders over Americans when making employment decisions so it can pay less.
According to a proposed class action filed in San Francisco federal court, Tesla violates federal civil rights law through its "systematic preference" to hire visa holders, and fire U.S. citizens at disproportionate rates compared with visa holders.
The complaint said Tesla is dependent on holders of H-1B visas, opens new tab for skilled workers, including in 2024 when it hired an estimated 1,355 visa holders while laying off more than 6,000 workers domestically, "the vast majority" believed to be U.S. citizens.
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