Tesla and Chipotle are sued separately by the EEOC for civil rights violations
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The U.S. Equal Employment Opportunity Commission filed a lawsuit against Tesla (NASDAQ:TSLA) on Thursday for alleged violations of federal law. The electric vehicle maker was accused by the EEOC of tolerating widespread and ongoing racial harassment of its black employees and by subjecting some of these workers to retaliation for opposing the harassment.
According to the EEOCâs suit, black employees at Teslaâs (TSLA) Fremont, California manufacturing facilities have routinely endured racial abuse, pervasive stereotyping, and hostility as well as epithets. Slurs were said to be used casually and openly in high-traffic areas and at worker hubs. Black employees were said to regularly encounter graffiti, including variations of the N-word, swastikas, threats, and nooses, on desks and other equipment, in bathroom stalls, within elevators, and even on new vehicles rolling off the production line.
The EEOCâs investigation also found that those who raised objections to racial hostility at Tesla (TSLA) suffered various forms of retaliation, including terminations, changes in job duties, transfers, and other adverse employment actions.
Separately, the EEOC filed a lawsuit against Chipotle Mexican Grill (NYSE:CMG) on allegations that it violated federal law when a manager at the companyâs Lenexa, Kansas location harassed a teen worker for wearing a hijab. Per the lawsuit, the restaurant chain retaliated against her after she complained and the teen was forced to resign because of the discriminatory treatment.
According to the suit, the teen was employed as a line server. During the summer of 2021, an assistant manager began repeatedly asking her to remove her hijab, or headscarf, pressuring her to show him her hair. Despite the teenâs rejections and complaints to management, Chipotle failed to act to stop the managerâs harassment. Chipotleâs (CMG) inaction was said to result in the manager escalating his abuse, ultimately grabbing and forcibly removing part of the teenâs hijab. After the teen reported the incident, Chipotle (CMG) was said to again fail to take prompt corrective action, and she was forced to submit her two weeksâ notice.

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