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Thursday, October 15, 2026

$137 Million Jury Award Against Tesla Reduced to $15 Million - SHRM

A federal judge reduced a $137 million award against Tesla in a race bias lawsuit to $15 million on April 13 but rejected the electric carmaker's request for a new trial. We've gathered articles on the news from SHRM Online and other media outlets.

Last Year's Verdict

Last year, a federal judge ordered Tesla to pay a Black former elevator operator $137 million in damages on his claim that the electric carmaker ignored racial epithets and graffiti that created a hostile work environment. The plaintiff, who was contracted to work through a staffing agency in 2015 and 2016, claimed that he was forced to quit because he was subjected to "daily racist epithets," including the N-word, as well as swastika drawings and other racist graffiti at a Tesla plant in the San Francisco Bay Area. The plaintiff said supervisors did not curb the behavior. Tesla did not comment on the verdict but has previously denied knowing about alleged racist conduct at the Bay Area plant.

(Associated Press) and (SHRM Online)

Prior Award 'Unconstitutionally Large'

The judge described the prior award of punitive damages of $130 million "unconstitutionally large," reducing the compensatory damages award from $6.9 million to $1.5 million and the punitive damages award to $13.5 million.

Liability Finding Upheld

In the April 13 decision, the judge said the evidence amply supported the jury's finding Tesla liable for the "profound" emotional harm the employee suffered and the "often inadequate" disciplinary...



Read Full Story: https://www.shrm.org/resourcesandtools/legal-and-compliance/employment-law/pa...