In a series of lawsuits that have plagued the growth of the automotive giant, Tesla Motors finds itself caught up in another lawsuit over labor law violation. A federal judge ruled that Tesla must defend itself at a trial over allegations over abuse of labor laws. The lawsuit alleges the company of threatening foreign workers of deportation if they called in sick or worse succumb to an injury.
Already in troubled waters, this lawsuit is a nightmare for Tesla, especially when its chief executive Elon Musk has stepped down under a settlement with SEC.
In an internal investigation, Tesla has found its subcontractors guilty of the aforementioned violations and have broken ties with them. The investigation report also added, “We’ve also since improved our supplier contracts and policies to better stop bad behavior.”