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California Judge Likely to Deny Tesla Motion to Halt Racial Bias Suit

Published 06/08/2022, 03:28 AM
Updated 06/08/2022, 07:35 AM
© Reuters.  California Judge Likely to Deny Tesla (TSLA) Motion to Halt Racial Bias Suit
TSLA
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By Michael Elkins

A California state judge said Tuesday that he would likely deny Tesla's (NASDAQ:TSLA) request to pause a lawsuit filed by California over racial discrimination allegations while the Office of Administrative Law (OAL) considered a complaint made by the company.

The electric car manufacturer, in a 10-page complaint, told California's OAL that the state Department of Fair Employment and Housing (DFEH) has adopted "underground regulations" that disregard requirements it must meet before suing employers.

According to a report by Reuters, the complaint is an attempt to rein in DFEH's authority to pursue discrimination cases by forcing the agency to take additional steps before suing, such as providing businesses with detailed explanations of alleged legal violations and making efforts to settle outside of court.

Alameda County Superior Court Judge Evilio Grillo refused to put the state litigation on hold while Tesla awaits a decision. Tesla is free to proceed with its petition to the OAL, Grillo said, but that office’s decision to side with or against Tesla “might have no effect on the case.”

A full hearing before Grillo is scheduled for Wednesday.

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