A FEDERAL judge has ruled that Tesla must defend itself at a trial over allegations it knew foreign workers at its California assembly plant were threatened with deportation if they reported an injury and worked long shifts that violated forced labour laws.
US District Judge Lucy Koh, in San Jose, California, dismissed most of the seven claims against Tesla on Monday but allowed two claims to survive, paving the way for the plaintiffs to seek documents and witnesses to build their case.
The decision comes as Tesla is under pressure to turn a profit and days after chief executive Elon Musk stepped down as chairman to settle allegations by regulators that he misled investors.
Tesla has been plagued with safety complaints brought by workers, allegations Tesla denies. Workers say long hours and pressure to deliver vehicles quickly takes a toll and some have pushed for a union.
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READ NOWAccording to the lawsuit, Gregor Lesnik of Slovenia went to the United States on a B-1 visa and worked 250 hours a month for less than $US950, well below minimum wage.
It also alleges foreign workers were threatened with deportation or reduced pay if they reported injuries or became ill.
The 2016 lawsuit by Lesnik and Stjepan Papes of Croatia seeks class action status on behalf of foreigners with B-1 visas working at construction sites at US auto plants.
Tesla was one of several automakers named as defendants but the only one that was not dismissed from the case because plaintiffs only alleged to have suffered threats of deportation at Tesla's plant in Fremont, California.