will the former employee accept the $15 million?

Following his lawsuit against Tesla, Owen Diaz receives a proposal of 15 million dollars in compensation. He currently has two weeks to accept it or not.

As a reminder, Owen Diaz is a ex-Tesla employee. He officiated in the factory of the automaker which is located in California, in Fremont. While working there (2015 and 2016), he suffered discrimination because of that skin color. However, the company did not react despite the many complaints he had made. The lack of reaction from Tesla therefore led Owen Diaz to sue the company. If the trial began in 2017, it finally seems to be over.

Tesla will pay a ninth of the initial damages

In October 2021, a federal court jury of San Francisco has rendered a verdict. Tesla had to pay $137 million to his former employee. Indeed, the entity was found guilty of having ignored the cases of harassment and racial discrimination that occurred there.

The factory in Fremont, a place where many cases of racial discrimination.

However, Tesla challenged the verdict of this jury. The company even estimated thatshe should only pay $600,000 to Owen Diaz.

In April, the compensation to be paid by the builder of electric cars has been reduced. Instead of the $137 million, the automaker will only have to pay $15 million. It’s the Judge William Orrick which lowered the amount of damages.

Instead of $6.9 million, the compensatory damages are now from 1.5 million. The punitive damagesthey were reduced to 13.5 million instead of the initial 130 million.

This Tuesday, Judge Orrick wrote an order that offered more clarity on the choice he made. Apparently, he found no question of law that warrants an immediate appeal for reduction of damages. Especially since an immediate call “would further delay the resolution of a case that is already five years old”. However, he agreed that the jury imposed an excessive sanction on Tesla. Hence his choice to considerably reduce the sum that the latter will have to pay to the victim.

DFEH, the Californian agency takes advantage of the moment

Aside from the case with Owen Diaz, Tesla also has to deal with the one with the Department of Fair Employment and Housing (DFEH) from California. He filed a lawsuit against him in February. However, it is now the company that is bringing the complaint against the DFEH.

The company still has an ongoing case with California's DFEH.

The latter would not have not conducted proper investigations before taking companies to court. In the ten page complaint which he transmitted to theOffice of Administrative Law (AOL), Tesla notably cited court documents filed by Activision Blizzard Inc. this American developer and publisher of video games similarly accuses the DFEH of not conducting proper investigations before embarking on a legal case.

the Car manufacturer filed its complaint with AOL on Tuesday. His goal is to limit agency power with regard to the pursuit of legal cases concerning discrimination. Tesla wants the compel to follow more measures before initiating legal proceedings against businesses.

For example, the DFEH should give companies further explanation of legal violations what they would have done. Thereafter, he should give the opportunity to establish an amicable settlement.

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