Tesla chief executive Elon Musk. Reuters
Tesla chief executive Elon Musk. Reuters
Tesla chief executive Elon Musk. Reuters
Tesla chief executive Elon Musk. Reuters

Tesla employee sues company over 'rampant sexual harassment' at California factory


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Tesla’s female employees face “rampant sexual harassment", according to a lawsuit by a woman who works in the electric car maker’s factory in Fremont, California.

Jessica Barraza, 38, said in a complaint filed last week in state court in Oakland that she experienced “nightmarish” conditions as a night-shift worker at Tesla, with co-workers and supervisors making lewd comments and gestures to her and other women several times a week.

When she complained to supervisors and human resources, they failed to take action, Ms Barraza said.

She suffers from panic attacks as a result of three years of such behaviour and “is afraid to return to work knowing that her body could be violated at any time with no repercussions", the complaint reads.

Tesla did not immediately respond to a request for comment. Ms Barraza’s suit was reported earlier by The Washington Post.

Tesla is already facing a $137 million verdict handed down in October in favour of another worker, who said he experienced racism at the Fremont factory.

Owen Diaz, who is black, worked as an elevator operator at the Fremont warehouse and said that co-workers told him to "go back to Africa".

A juror in that case told Bloomberg News that the panel hoped to prod Tesla executives to “take the most basic preventative measures and precautions they neglected to take as a large corporation to protect any employee within their factory”.

Tesla is appealing against that award.

Tesla has been dogged by allegations of discrimination at its Fremont plant for years, but most employees are bound by arbitration agreements they must sign as a condition of employment, which keep most complaints confidential.

Arbitration is a long and expensive legal process that is generally cost-prohibitive for people and favours larger entities with deep pockets.

In 2020, 31 complaints were filed with California’s Department of Fair Employment and Housing alleging discrimination at Tesla on the basis of race, age, gender expression, disability and pregnancy, data from public records shows.

The state agency issued right-to-sue letters in most of the cases. A handful were closed with insufficient evidence.

Meanwhile, Tesla filed on Monday for approval of the first phase of its Giga Factory Texas with the state’s Department of Licensing and Regulation.

Mr Musk announced the company’s move from Palo Alto, California, to Texas after he became disgruntled with Governor Gavin Newsom’s stringent Covid-19 restrictions.

He called Mr Newsom’s mandates “fascist” and predicted that the pandemic would be over by April 2020.

The Texas factory will make Tesla’s Cybertruck and is near the liberal University of Texas.

Texas governor Greg Abbot said on CNBC’s Squawk on the Street, “… Elon had to get out of California because, in part, of the social policies in California and Elon consistently tells me that he likes the social policies in the state of Texas”.

Mr Musk replied on Twitter that he preferred to stay out of politics.

“In general, I believe government should rarely impose its will upon the people and, when doing so, should aspire to maximise their cumulative happiness. That said, I would prefer to stay out of politics.”

Agencies contributed to this report

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

How to wear a kandura

Dos

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  • Always ask for the dress code if you don’t know
  • Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work 
  • Wear 100 per cent cotton under the kandura as most fabrics are polyester

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Other workplace saving schemes
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  • Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
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The specs

Engine 60kwh FWD

Battery Rimac 120kwh Lithium Nickel Manganese Cobalt Oxide (LiNiMnCoO2) chemistry

Power 204hp Torque 360Nm

Price, base / as tested Dh174,500 

Our legal advisor

Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.

Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation. 

Education: Sagesse University, Beirut, Lebanon, in 2005.

Updated: November 23, 2021, 4:45 AM