Derek Smith Law Group Represents Former Tesla Employee in Lawsuit Alleging Retaliation for Reporting Sexual Harassment

SAN JOSE, CA, UNITED STATES, November 2, 2026 /EINPresswire.com/ -- Derek Smith Law Group, LLP, today announced that it represents Luis Soto, a former Tesla employee who alleges in a lawsuit that the company ordered him to take a drug test about an hour after telling him it had closed its investigation into his sexual harassment complaint, and then fired him one week later.
The lawsuit, Luis Soto v. Tesla, Inc., et al., Case No. 26CV493661, was filed on May 12, 2026, in the Superior Court of California, County of Santa Clara. The allegations described in this release are drawn from Mr. Soto’s proposed First Amended Complaint; the parties have signed a joint stipulation requesting leave of court to file it. Zachary Rosenbaum, Esq., a partner in the firm’s Los Angeles office, represents Mr. Soto.

The Allegations

According to the proposed amended complaint, Mr. Soto joined Tesla in February 2024 as an hourly estimator at the company’s collision center in Sunnyvale, California, and received positive recognition, monetary awards, and multiple raises.
He alleges that beginning around March 2025, his manager subjected him to repeated unwelcome and sexualized conduct, including touching him without consent and commenting on his appearance, and that on October 7, 2025, while Mr. Soto was at his workstation, the manager made unwanted sexual physical contact with him. Mr. Soto alleges that the next day he made a formal complaint to Tesla Human Resources about the incident and the manager’s earlier conduct.

Mr. Soto alleges that at about 1 p.m. on November 4, 2025, Tesla Human Resources told him its investigation into his harassment complaint was complete and closed and that “appropriate action” would be taken. About an hour later, according to the proposed amended complaint, two supervisors accused him of “smelling like marijuana” and ordered him to submit to drug testing. He alleges that no other employees were accused or tested at the time and that he had no prior discipline or documented performance concerns.
Mr. Soto alleges that his urine and alcohol tests were negative and that he showed no objective signs of impairment at work, but that he was later told a saliva test had returned a positive cannabis-related result. He contends that any cannabis use, to the extent Tesla claims there was any, occurred off duty and away from the workplace.

According to the proposed amended complaint, Tesla placed Mr. Soto on unpaid leave effective November 4, 2025, denied his request for an appeal or retest, allowed the manager to return to work on November 10, 2025, while Mr. Soto remained on leave, and fired Mr. Soto by email on November 11, 2025, citing the saliva test result and an alleged policy violation. Mr. Soto contends that the drug test, unpaid leave, and termination were retaliation for his sexual harassment complaint and that Tesla relied on the saliva test result as a pretext.

The Claims

The proposed amended complaint asserts claims under California’s Fair Employment and Housing Act for sexual harassment and hostile work environment; retaliation; failure to prevent discrimination, harassment, and retaliation; and cannabis discrimination in violation of Government Code section 12954, along with a common-law claim for wrongful termination in violation of public policy. Section 12954, which became operative on January 1, 2024, prohibits California employers, with specified exceptions, from discriminating against or penalizing a person for using cannabis off the job and away from the workplace.

In the proposed amended complaint, Mr. Soto seeks compensatory and punitive damages, attorneys’ fees and costs, and injunctive and equitable relief, including correction of his personnel records, and demands a jury trial.

Statement From Counsel
“Employees in California have the right to report sexual harassment without retaliation,” said Rosenbaum. “We look forward to presenting Mr. Soto’s claims in court.”

About Derek Smith Law Group
Derek Smith Law Group, which has offices in New York, New Jersey, Pennsylvania, Florida, and California, represents employees in sexual harassment, sexual assault, discrimination, retaliation, and wrongful termination cases. Cases and business in California are handled exclusively through Derek Smith Law Group, LLP, an entity completely distinct from Derek Smith Law Group, PLLC. The Los Angeles office of Derek Smith Law Group, LLP, is located at 633 West 5th Street, Suite 3250, Los Angeles, CA 90071. More information is available at dereksmithlaw.com or 800-807-2209.

The allegations described in this release have not been proven or decided by the court. Tesla filed an answer to the original complaint on July 1, 2026, and the defendants have the opportunity to contest the allegations in court. Attorney Advertising.

Zachary Wheeler
Derek Smith Law Group, PLLC
+1 310-602-6050
zwheeler@dereksmithlaw.com
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