A federal investigation into potential workplace discrimination at Tesla Inc., led by the Office of Federal Contract Compliance Programs (OFCCP), has been abruptly halted after an executive order by President Trump on January 21, 2025, effectively disbanding the agency. This action has left the OFCCP with reduced responsibilities, primarily focused on notifying federal contractors, like Tesla, that they will no longer face audits for discrimination claims or pay outstanding fines.
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This suspension of the investigation comes despite ongoing legal action taken by the Equal Employment Opportunity Commission, which filed a lawsuit against Tesla in September 2023, alleging "widespread and ongoing racial harassment" of Black employees within the company. Complaints from workers at Tesla’s Fremont factory have indicated a history of systemic racial abuse and hostile work environments for several years.
The OFCCP previously planned to audit Tesla and over 2,000 other companies for compliance with equal employment laws in 2024. However, the closure of the agency means that those investigations, including the assessment of Tesla's practices, will not proceed. As a result, a multitude of companies, including prominent firms like Google and Meta, have also seen their audits canceled due to this executive action.
News Source: sfstandard
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