Tesla, the electric vehicle company led by billionaire Elon Musk, is facing a proposed class-action lawsuit accusing it of favouring H-1B visa holders over American workers to reduce labour costs. Filed in the San Francisco federal court, the complaint alleges that Tesla violated federal civil rights law by disproportionately hiring foreign workers while simultaneously laying off US citizens.
Tesla Sued for Favouring H-1B Workers Over Americans in Hiring, Alleged Wage Bias
According to the filing, Tesla employed about 1,355 H-1B workers in 2024 but laid off more than 6,000 US-based employees, most of whom are believed to be American citizens. Plaintiffs argue that this imbalance reflects systemic discrimination, with the company using visa-dependent workers as a cost-saving strategy since they can often be paid less than local employees.
The lawsuit was brought by software engineer Scott Taub and human resources specialist Sofia Brander. Both allege they were denied opportunities at Tesla because they did not require visa sponsorship. Taub said he saw a Tesla job listing marked “H1B only,” while Brander claimed she was twice refused interviews despite having prior experience as a Tesla contractor. The complaint characterises this practice as a form of “wage theft,” arguing that American workers were side-lined in favour of lower-paid foreign hires.
Elon Musk Defends H-1B Hiring as Tesla Lawsuit Highlights Worker Disputes
The case also referenced a December 2024 post by Musk on his social media platform X, where he defended the H-1B program, noting that many innovators—including himself—came to the United States under such visas. Musk, originally from South Africa, first entered the US on an H-1B before becoming a naturalised citizen.
The outcome of this lawsuit could have significant implications for Tesla’s hiring practices and the broader debate over how US companies balance reliance on global talent with obligations to American workers.
Summary:
Tesla faces a class-action lawsuit alleging it favours H-1B visa holders over American workers to cut labour costs. Plaintiffs claim systemic discrimination and “wage theft,” citing denied opportunities. Elon Musk defended H-1B hiring, noting his own visa history. The case could impact Tesla’s hiring practices and US talent policies.
