(José Niño, Headline USA) Tesla, the electric vehicle giant led by CEO Elon Musk, is facing a class-action lawsuit accusing the company of discriminating against U.S. citizens in its hiring and employment practices.
The lawsuit, filed on Sept. 12 in the United States District Court for the Northern District of California, claims Tesla systematically favors foreign workers on H-1B visas over American citizens, allegedly paying visa-dependent employees less and terminating U.S. citizens at disproportionate rates.
The plaintiffs, Scott Taub and Sofia Brander, are both U.S. citizens who say they were unfairly denied employment opportunities at Tesla because of their nationality.
Taub, a Nevada resident with over 20 years of experience in software testing and automation, applied for multiple roles at Tesla but was either rejected or dissuaded from applying. In one instance, a recruiter for a Tesla contractor explicitly stated that a position was reserved for “H1B only,” according to the lawsuit. Taub said he was “shocked” to learn that his citizenship disqualified him from consideration.
A recently filed lawsuit against Tesla highlights the company's increasing reliance on H-1B visas. The company has also cut thousands of American workers in recent years, according to the lawsuit.
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Brander, a California resident and experienced human resources specialist, applied for two full-time HR positions at Tesla in 2023 and 2024. Despite meeting the qualifications and having previously worked for Tesla as a contractor, she was not interviewed or hired.
The lawsuit alleges Tesla’s preference for visa workers led to her exclusion, even though she was well-suited for the roles.
The plaintiffs argue that Tesla’s hiring practices violate the Civil Rights Act of 1866, which prohibits discrimination based on race or citizenship. They claim Tesla’s reliance on H-1B visa workers is part of a broader strategy to cut costs, as visa-dependent employees are often paid less and are less likely to challenge unfavorable working conditions.
“Visa employees require Tesla’s sponsorship to remain in the United States,” the lawsuit states, adding that this dependency makes them “less likely to speak out against undesirable working conditions.”
The lawsuit also highlights Tesla’s growing reliance on H-1B visas. From 2018 to 2024, Tesla secured over 5,400 H-1B visas, ranking 16th among U.S. companies in 2024 for new visa approvals. That same year, Tesla laid off more than 6,000 workers, most of whom were U.S. citizens, while hiring over 1,350 new H-1B visa employees.
The plaintiffs allege these layoffs were part of a deliberate effort to replace American workers with cheaper, visa-dependent labor.
Elon Musk has defended Tesla’s use of the H-1B visa program. In a December 2024 post on X, formerly known as Twitter, Musk responded to criticism of the program, saying, “We hire the best talent from around the world. That’s what makes Tesla great.”
The stakes in this case are significant. If the plaintiffs succeed, Tesla could face substantial financial penalties and be forced to overhaul its hiring practices. The lawsuit seeks damages for affected workers, changes to Tesla’s employment policies, and a court order to end what the plaintiffs describe as Tesla’s pervasive pattern and practice of citizenship discrimination.
H-1B visas have received increasing scrutiny over the past year. As Headline USA previously reported, recent reports suggested that tech giants like OpenAI, Instacart, and Udemy may be manipulating the PERM labor certification process by directing job applicants to immigration departments instead of normal hiring channels, a practice critics argue discourages American workers and favors foreign hires.
These allegations, which echo past DOJ cases against Facebook and Apple, come amid rising unemployment among U.S. graduates and heated debate over immigration policy.
The present class-action lawsuit, Taub et al v. Tesla, Inc., can be found here. José Niño is the deputy editor of Headline USA. Follow him at x.com/JoseAlNino
