Labor/Employment,
Civil Litigation
Nov. 26, 2021
Tesla faces accusation it knowingly benefited from alleged forced labor
U.S. District Judge Lucy H. Koh ruled that plaintiffs have adequately alleged that Tesla violated the California Trafficking Victims Protection Act and the Trafficking Victims Protection Reauthorization Act, knew or should have known about the coerced labor and benefited from a venture that relied on coerced labor.
A federal judge in San Jose ruled that Tesla Inc. must face a putative class action claiming it knowingly benefited from forced labor.
The litigation stems from 2014, when Tesla, aiming to upgrade its factory in Fremont, contracted German-based Eisenmann Corp., which in turn subcontracted to a Slovenian company, ISM Vuzem D.o.o. . Vuzem supplied the labor for the construction project, and is accused of coercing the foreign citizen plaintif...
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