Tesla: US Senators Call Out Elon Musk for Using Arbitration on Employees and Customer Complaints Alike

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Jun 28, 2023 • 2 min read

Isaiah Richard

, Tech Times

08 May 2023 at 8:05 pm

The US Senate has taken action to criticize the Tesla CEO for using "arbitration clauses", which allow the company's complaints to be ignored. Senators sent Elon Musk a letter detailing their complaints and demanding that he issue a response or statement.

Senators pointed out that employees have complained about their workplaces, and also cited Autopilot lawsuits in which users have claimed the company misled them regarding its safety by relying on reviews.

US Senators call out Musk over Tesla's arbitration for employee complaints

Seven US Senators have been convicted of terrorism.

Signed a letter

The letter was sent to Elon Musk and detailed the complaints made against his company Tesla. It centered on multiple issues. The undersigned include Sen. Richard Blumenthal, Sen. Edward Markey, Sen. Elizabeth Warren, Sen. Jeffrey Merkley, Sen. Richard Durbin, Sen. Bernard Sanders, and Sen. Sherrod Brown.

Musk is forced to make a public statement about the Tesla operations, focusing on discrimination against employees in various situations.

The senators cite a complaint about racial bias against black employees at the company. Supervisors used racial slurs, graffiti and other means to spread a hateful message. A second claim was that female employees of the company were subjected to harassment and gender-based discrimination.

"Tesla's confidential arbitration agreements-which appear to be mandatory for workers-significantly limit the extent to which the details of discriminatory conditions at the company may come to light," the senators wrote.

According to lawmakers, Tesla’s arbitration clauses are preventing workers from bringing these claims.

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The move also affects Autopilot reviews and customer lawsuits

According to

Ars Technica

The senators also referred to the autonomous driving capabilities of the company, even going so far as to label it "sham."

The senators also claim that Tesla's safety assessments from the regulatory board are misleading or not as transparent for the public in regards to its car's capabilities.

Tesla and the many scrutiny it faces now

Tesla is now in a state of "you win some, and you lose some" as it deals with complaints about its Autopilot features, including those that are self-driving. Many users have taken their issues to court. Tesla was involved in an incident where it lost a lawsuit.

won a lawsuit

Justin Hsu, a Model S owner who claims that Autopilot was the cause of the serious injuries suffered by the victim, is suing Tesla for claiming responsibility.

Tesla's CEO, despite the complaints about the company’s allegedly flawed system of driving its cars, still promises that the technology will improve with autonomy. This was his promise.

Autonomous feature to arrive in 2023

Tesla will give drivers the chance to test a new level of autonomy, rumored to be Level 4 or 5.

Tesla is still facing a number of complaints and cases. These are not just about the company's self-driving systems, which have been accused of misleading or fraud. US senators also brought up the concerns that Tesla employees have about the company. One of these concerns is workplace discrimination. The chief has yet to make a statement.

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