A cause finding was issued against electric vehicle maker Tesla in June, in an investigation launched by the U.S. Equal Employment Opportunity Commission over charges of racial discrimination.

In its second quarter filing, Tesla said the cause finding “closely parallels” complaints listed in a lawsuit by the Department of Fair Employment and Housing, California’s civil rights agency. Tesla built its first vehicle assembly plant in Freemont, California.

That state agency launched a three year investigation of Tesla, during which it claimed to have received hundreds of complaints from Black workers, and to have found evidence that the company routinely engaged in racial discrimination against its black workers.

The DFEH claimed that Tesla kept black workers in lower level roles despite any skills or experience which would warrant promotions or more senior positions. It claimed Tesla also assigned black workers to dirtier or more dangerous jobs, and more physically demanding work. It also claimed the company retaliated against black workers who complained, and that such retaliation included the use of racist slurs in the workplace by managers.

Presently the lawsuit by the state agency is pending a hearing scheduled for August regarding Tesla’s motion for a dismissal.

Tesla noted in its filing that it will now engage in a mandatory conciliation process with the EEOC to seek to reach a resolution. If it cannot, then the agency will be able to sue the electric carmaker in federal court over the charges.

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