Tesla told employees not to complain to managers about pay, labor director alleges

Authored by morningstar.com and submitted by vpuetf

Supervisors allegedly told Florida employees 'not to complain to higher level managers about their pay or other terms and conditions of employment'

Electric-vehicle maker Tesla Inc. ran afoul of the law when the company told employees at an office in Florida not to complain to higher-ups about pay or discuss things like hiring, a U.S. labor board director alleged in a filing.

The complaint, dated Sept. 2 and signed by a regional director for the National Labor Relations Board in Tampa, alleged that Tesla (TSLA) late last year and early this year told employees at an office in Orlando "not to discuss" their pay or other employee hiring with others, and told them "not to complain to higher level managers about their pay or other terms and conditions of employment."

Bloomberg reported the news earlier in the day, after acquiring the filing via of Freedom of Information Act request. Tesla was not immediately available for comment.

In-depth: Tesla investors await clues on demand, board actions and weigh downside risks in 2023

Kayla Blado, a representative for the labor board, said in an email that a hearing on the matter was set for Feb. 7 in Tampa. She said that a complaint is not a board decision. Rather, it indicated that that a regional office has found merit to charges and will prosecute the charges with an administrative law judge if the parties don't settle.

Tesla has had run-ins with the labor board in the past. The board last year ordered the company to bring back an employee it fired in 2017 and ordered Chief Executive Elon Musk to delete a tweet discouraging forming a union.

Earlier this year, a federal judged lowered a jury's award of $137 million in damages in a racial discrimination case against Tesla to $15 million.

Shares of Tesla finished up 1.1% on Friday. The stock put up its worst year ever this year, as Wall Street grew more concerned with Musk's preoccupations at social-media platform Twitter, which he bought in October. Shares declined 65% on the year, as the S&P 500 index declined 19.4%.

For more: Tesla is not alone -- 20 (and a half) other big stocks had their worst year on record

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LilyHex on December 31st, 2022 at 07:02 UTC »

I've worked at a place that had the "don't discuss your pay" "rule", and one day, a bunch of us all sat around doing just that. I found out the new hire I'd trained got hired on at $6 more an hour than they were currently paying me.

That got fixed REAL fast.

WanderingPickles on December 31st, 2022 at 04:35 UTC »

This happened at two former employers. I politely noted that saying so was running afoul of federal legislation. Not to cause trouble but rather because a lot of folks have no idea.

Edit: a word.

Peelboy on December 31st, 2022 at 00:20 UTC »

Company: don't talk about pay

Me: I guess it is time to start discussing pay with EVERYONE