Tesla Faces Investor Test After Big Jury Award Over Racism

SAN FRANCISCO/BOSTON—A contract worker has won a $137 million jury award over workplace racism against Tesla Inc., raising pressure on the electric vehicle maker whose shareholders will vote on Thursday on a proposal to review how it addresses similar complaints for full-time employees. The nonbinding shareholder resolution asks Tesla’s board to study the impact of the company’s current use of mandatory arbitration to resolve complaints of harassment and discrimination in its workplace. Tesla opposes the plan. On Monday, a San Francisco federal jury made the award to former Tesla worker Owen Diaz. “The verdict sends a message to corporate America that you need to make sure that racist conduct is not occurring,” Lawrence Organ, his attorney told Reuters. Diaz was able to face a public trial because contract workers were not subject to Tesla’s mandatory arbitration, which forces employees to resolve disputes outside judiciary courts. Tesla advised against the resolution …

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