In a brief order issued late Monday, U.S. District Judge Vince Chhabria ruled that the lead plaintiff, Scott Taub, had presented “just enough facts” for the case to move forward at this stage. The decision allows the lawsuit to proceed into further litigation but does not determine the merits of the allegations.
Allegations of Preferential Hiring
Taub, a software engineer, filed the lawsuit in September, alleging that Tesla maintains a “systematic preference” for hiring foreign workers on H-1B visas in order to pay lower wages, in violation of federal civil rights laws. He claims he was passed over for an engineering role and that company layoffs have disproportionately affected U.S. citizens.
Central to the judge’s ruling was Taub’s claim that a recruiter from a staffing firm told him the engineering position he sought was “H1B only,” referring to the visa category commonly granted to highly skilled foreign workers and widely used in the technology sector. Judge Chhabria said Tesla must respond to that allegation.
However, the judge also noted that Taub’s broader evidence of discrimination appeared limited. For example, statistics cited in the complaint show Tesla hired an estimated 1,355 H-1B visa holders in 2024 while laying off more than 6,000 domestic workers. But Chhabria said those figures alone do not prove the company favored foreign workers over U.S. citizens.
“All of this causes the Court to be somewhat skeptical of Taub’s allegations,” the judge wrote.
Claims by Second Plaintiff Dismissed
The court dismissed claims brought by a second plaintiff, human resources specialist Sofia Brander, finding it implausible that Tesla would prefer foreign workers for HR roles. Judge Chhabria granted Brander two weeks to amend her complaint and provide additional details to support her claims.
Tesla, led by billionaire CEO Elon Musk, has denied the allegations, describing them in court filings as “preposterous.” The company and attorneys for the plaintiffs did not immediately respond to requests for comment following the ruling.
Broader Visa Debate
The case unfolds amid heightened political scrutiny of the H-1B visa program. President Donald Trump recently imposed a $100,000 fee on new H-1B visas, arguing that the measure would deter companies from exploiting the system and displacing American workers. The policy is currently being challenged in multiple lawsuits.
While Monday’s ruling allows Taub’s case to proceed, it signals that the plaintiff faces a significant evidentiary burden as the litigation advances. The outcome could have broader implications for hiring practices within the tech and automotive sectors, particularly as debates over foreign labor and domestic job protections continue.