Tesla has been ordered to pay over $1 million to a former Black employee subjected to racial slurs and unfair work duties.
Melvin Berry, a materials handler who became employed with the company’s Fremont factory in 2015, filed a lawsuit against the company after two of his supervisors called him the N-word. When Berry confronted them about their racial comments, he claims that he was forced to work longer hours and handle heavier equipment during his shifts.
Berry says the toxic workplace caused him to experience severe migraines, panic attacks, anxiety, depression, and insomnia. He sought professional help from a psychologist to cope with the emotional toll after questioning his sanity. After just 17 months at the factory, Berry quit.
Tesla claims that the supervisors did not use racial slurs nor demand increased work duties. The company also says that there was no evidence suggesting that Berry consulted with Human Resources about the abuse. Nevertheless, Elaine Rushing, the arbitrator presiding over the case, ruled the supervisor’s behavior “created a racially hostile work environment.”
Most details of the arbitration remain primarily confidential. However, it was revealed that Tesla agreed to pay $1.02 million-plus another $266,278.50 in damages, including $100,000 for Berry’s emotional suffering.
This is not the first instance where Tesla has been accused of maintaining racist work environments. Other Black employees at the Fremont factory had accused the company of failing to act when they brought up racial abuse, including KKK and swastika symbols in bathroom stalls and another Black employee being called the N-word nearly 100 times while on the clock.