Tesla sued for allegedly preferring H-1B workers over Americans in hiring decisions

 

A lawsuit filed in San Francisco federal court accuses Tesla, the electric vehicle company led by Elon Musk, of systematically preferring H-1B visa holders over American citizens in hiring and firing decisions. The proposed class-action complaint, submitted on Friday, alleges the company has violated federal civil rights laws by prioritising visa-dependent workers to cut labour costs.

Alleged bias against American applicants

The complaint claims Tesla’s hiring practices disproportionately hurt U.S. citizens, particularly in high-skilled roles that the company often fills with H-1B visa holders. According to the filing, the strategy allows Tesla to pay lower wages to employees on visas than to American workers performing the same duties.

The case was brought by software engineer Scott Taub and human resources specialist Sofia Brander. Both allege Tesla refused to hire them because they would not require visa sponsorship.

Taub said he was told a role he sought was “H-1B only” and claimed he was excluded from consideration for another position. Brander, who had previously worked at Tesla as a contractor, said she was denied interviews for two jobs despite her prior experience.

“While visa workers make up just a fraction of the United States labour market, Tesla prefers these candidates over US citizens, as it can pay visa-dependent employees less than Americans performing the same work, a practice known in the industry as wage theft,” the complaint states.

Musk’s reliance on H-1B visas

The lawsuit underscores Tesla’s heavy use of visa holders in technical roles. In 2024 alone, Tesla reportedly hired about 1,355 H-1B workers, while more than 6,000 U.S. employees, most of them citizens, were laid off.

The complaint also points to a December 27, 2024 social media post from Musk, in which he acknowledged relying on the H-1B system. He wrote that the visa was “critical” both for him personally and for key contributors at SpaceX and Tesla.

What the lawsuit seeks

The suit demands compensation for U.S. citizens who applied for Tesla roles in the United States but were not hired, as well as those who were employed and later terminated. If certified as a class action, it could affect a large pool of current and former applicants.