Kindness is free—and frugal: preventing harassment at work

Elon Musk is paving the way for luxurious electric cars and leisurely space travel, but even his companies are behind the times when it comes to addressing hostile work environments.

Liability and a loophole

Tesla is consistently a Fortune 100 company leading innovation in the electric car industry. According to its mission statement, the business is determined to “accelerate the world's transition to sustainable energy.” It may come as a surprise to some then that the company also has a reputation for fostering a hostile work environment.

Over the last few years, a handful of former Tesla employees have pursued legal remedies against the tech company for race discrimination. Most disputes have been resolved behind closed doors as the company ensures all incoming employees agree to an arbitration clause.

More recently, however, the tech giant was sued by an independent contractor. The worker therefore wasn't precluded by an arbitration agreement and was allowed to pursue his legal claim before a jury. The court ordered the tech company to pay an astounding $130 million in punitive damages in addition to $6.9 million in compensatory damages for failing to address and remediate a hostile work environment that allowed race discrimination to endure.

Throwing caution to the company culture

In Texas, you may be held responsible for the actions (or inactions) of your managers and supervisors. In September, a new statelaw went into effect that now holds managers and employers liable for promoting or neglecting to remediate sexual harassment claims.