A federal judge in San Francisco has refused to dismiss a proposed class-action lawsuit accusing Tesla of systematically discriminating against U.S. citizens in hiring to favor lower-paid foreign workers on H-1B visas, ruling that plaintiff Scott Taub presented "just enough facts" for the core claims to advance.

In a brief order issued late Monday, U.S. District Judge Vince Chhabria allowed Taub's allegations — that Tesla passed him over for a software engineering role after a recruiter allegedly told him the position was "H-1B only" — to move forward. Taub claims this reflects a broader pattern of preferring visa holders in violation of federal civil rights law, including disproportionate layoffs of U.S. citizens during 2024 workforce reductions.

The judge dismissed claims from co-plaintiff Sofia Brander, a former HR specialist, finding it implausible that Tesla would prefer foreign workers for human resources roles. He gave Brander two weeks to file an amended complaint with more specific allegations.

Chhabria expressed skepticism about Taub ultimately prevailing, noting the 2024 hiring data (Tesla reportedly brought in ~1,355 H-1B holders while laying off over 6,000 domestic workers, mostly U.S. citizens) shows substantial visa use but not necessarily illegal preference over qualified Americans. Still, the recruiter comment provided sufficient initial evidence to survive dismissal.

Tesla has denied the allegations, calling them "preposterous" in court filings. Neither Tesla nor plaintiffs' lawyers immediately responded to requests for comment.

The case arrives amid heightened scrutiny of the H-1B visa program. President Trump recently imposed a $100,000 fee on new H-1B visas — an unprecedented step aimed at deterring abuse and protecting American workers — though the policy faces at least three legal challenges. Tech giants, including Tesla, have long relied heavily on H-1B workers for specialized roles, sparking debates over wage suppression and displacement.

If certified as a class action, the lawsuit could expose broader hiring practices across the industry and set precedent on how companies balance global talent needs with civil rights obligations.