US court OKs lawsuit against Tesla for hiring H-1B visa workers while sacking Americans
India Today
A court in the US said Tesla will have to face a lawsuit for allegedly favouring H-1B visa-holding foreign workers over American citizens. A software engineer claimed that the EV-maker hired over 1,300 workers on H-1B visas while sacking 6,000 employees, mostly Americans.
A federal judge in the US has ruled that American EV maker, Tesla, must face a lawsuit for discriminatory hiring practices that favoured lower-paid H-1B-visa-holding foreign workers over American citizens, reported the news agency Reuters. H-1B visa hiring is mostly associated with Indian- and Chinese-origin people, though it isn't clear the nationality of the people Tesla hired.
The complaint alleged that Tesla hired at least 1,355 workers on H-1B visas while laying off over 6,000 employees, the majority of them American citizens.
In a brief order issued late on Monday, US District Judge Vince Chhabria in a San Francisco court, declined to dismiss the proposed class-action lawsuit filed by software engineer Scott Taub in September 2025. The court argued that the plaintiff had presented "just enough facts" about Tesla's hiring practices to allow the case to proceed.
In his lawsuit, Taub alleged that the Elon Musk-owned electric carmaker maintained a "systematic preference" for hiring foreign workers through programmes like H-1B, in violation of federal civil rights law.
The lawsuit comes amid heightened political and legal scrutiny over the H-1B visa programme, after Donald Trump became the American President for his second term.
He claims the Elon Musk-led company passed him over for an engineering position and instead favoured candidates on H-1B visas. These American visas are granted to highly skilled foreign workers and are widely used across the technology sector.
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