Elon Musk accused of wage theft? Tesla sued for allegedly preferring H-1B visa workers over Americans
&imwidth=600&imheight=450&format=webp&quality=medium "Elon Musk accused of wage theft? Tesla sued for allegedly preferring H-1B visa workers over Americans")
Elon Musk's Tesla sued for allegedly preferring H-1B visa workers over Americans Photograph: (Reuters)
Tesla faces a San Francisco lawsuit accusing it of favouring H-1B visa workers over US citizens, allegedly engaging in wage theft by paying visa holders less while sidelining American applicants.
Tesla is facing a lawsuit in the United States over claims that it gives preference to foreign visa holders when making hiring decisions, while pushing out US citizens. The case, filed in San Francisco federal court, argues that the electric car company has a “systematic preference” for visa workers because it can pay them less.
Who brought the lawsuit?
The proposed class action was filed by software engineer Scott Taub and human resources specialist Sofia Brander. Both say Tesla rejected them for jobs once it became clear they were US citizens who did not need visa sponsorship. Taub claims he was discouraged from applying for one role after being told it was for “H1B only,” and was not invited to interview for another. Brander says Tesla refused to interview her for two jobs, even though she had already worked for the company twice as a contractor.
Also read: Elon Musk’s xAI fires 500 workers training Grok AI, says generalist tutors no longer needed
How many visa workers does Tesla hire?
The complaint points to Tesla’s reliance on H-1B visas for skilled employees. In 2024 alone, the company reportedly hired around 1,355 visa holders while laying off more than 6,000 domestic workers, “the vast majority” believed to be US citizens. “While visa workers make up just a fraction of the United States labour market, Tesla prefers to hire these candidates over US citizens, as it can pay visa-dependent employees less than American employees performing the same work, a practice in the industry known as ‘wage theft,’” the complaint said.
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What has Elon Musk said?
The filing also cited a post by Elon Musk on X dated December 27, 2024. Musk, who was born in South Africa and once held an H-1B visa himself, wrote, “The reason I’m in America along with so many critical people who built SpaceX, Tesla and hundreds of other companies that made America strong is because of H1B.”
What happens next?
It is unclear how the plaintiffs plan to prove their allegations of systematic bias in Tesla’s hiring and firing. The lawsuit seeks damages for US citizens who were either rejected for jobs at Tesla or fired after being employed by the company.
