Major technology giants are once again making headlines as they ramp up investments in highly skilled foreign talent through the H-1B visa program. From Silicon Valley powerhouses to global tech leaders, companies are intensifying their push to secure specialized workers in fields like artificial intelligence, cloud computing, and advanced engineering, underscoring the critical role of immigration in sustaining America’s innovation economy.
At the moment, Tesla is confronting a proposed class-action lawsuit in a California federal court, with claims that the company prioritizes hiring foreign workers on visas instead of U.S. citizens for available positions, according to Bloomberg Law.
In their filing, job seekers Scott Taub and Sofia Brander allege that the automaker carried out “a pervasive pattern and practice of citizenship discrimination.”
The plaintiffs contend that they were turned down for positions in quality assurance engineering and human resources, which were instead given to candidates needing visa sponsorship. They further claim Tesla takes advantage of that sponsorship to underpay visa holders compared to U.S. employees, calling the practice “wage theft.”
The case is getting a lot of attention because it follows a recent court ruling in Rajaram v. Meta Platforms Inc. that confirmed U.S. citizens are protected from discrimination based on their citizenship under Section 1981 of the Civil Rights Act of 1866. Until now, this law mostly applied to race-related cases.
The decision makes it easier for workers to sue companies directly, without first going through the Equal Employment Opportunity Commission, and it also allows for unlimited damages if the claim is successful.
Legal analysts warn that tech firms heavily using H-1B visas may come under greater scrutiny following the Meta ruling. Because visa holders are generally dependent on their sponsoring employer, they often have limited ability to negotiate pay or switch jobs. Critics say this gives companies an advantage to offer lower wages to foreign workers, which could raise concerns about potential conflicts with civil rights protections for U.S. citizens.
Tesla CEO Elon Musk has long been a supporter of the H-1B visa program. In 2024, he tweeted that the program “made America strong” by attracting skilled workers. Musk also declared, “I will go to war on this issue the likes of which you cannot possibly comprehend,” a comment that is referenced in the current lawsuit, as per The Economic Times.
READ: H-1B backlash erupts on social media as US-India trade war escalates (
The H-1B visa is a U.S. work permit for highly skilled foreign professionals in fields like technology, engineering, and healthcare. Companies sponsor these workers for specific roles, usually requiring specialized education or expertise. Once approved, the visa allows the employee to live and work in the U.S. for up to a specific time period with extensions possible under certain situations. Also, visa holders are tied to their sponsoring employer, switching jobs can be tricky.
Currently, the H-1B visa program has become a trending topic in the escalating trade tensions between the United States and India, igniting a wave of backlash on social media.
Netizens argue that the program undermines American workers by allowing companies to hire foreign talent at lower wages, especially in the tech industry. One user on X (formerly Twitter) expressed frustration, stating, “As long as you are Indian, you have access to their network of jobs. #H1B. If you are an American and qualified, you have NO chance! Enough is enough.”
The political rhetoric surrounding the H-1B program has intensified, with figures like Commerce Secretary Howard Lutnick labeling it a “scam” and proposing reforms to prioritize higher wages and merit-based selection.
Now with this Tesla case, matters are likely to escalate further.