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A man who alleges he was wrongfully fired from his managerial job at Elon Musk�s Tesla Motors Inc. in 2023 for complaining that would be committing
fraud if he abided by a management order to overcharge customer does not
have to arbitrate his case, a judge has ruled.

Los Angeles Superior Court Judge Virginia Keeny heard arguments on Friday
on Tesla�s motion to compel arbitration of plaintiff Jon Adam Hinze�s
case, took the case under submission and issued a final ruling on Tuesday denying the motion.

Tesla lawyers argued that Hinze was bound to arbitrate any work disputes
under the terms of a letter offering him employment that he signed in
April 2015.

�When plaintiff accepted Tesla�s offer of employment, he agreed to
arbitrate any and all employment-related disputes with a neutral
arbitrator�,� a Tesla attorney wrote in his court papers.

But the judge said the agreement was, among other things, biased in favor
of Tesla.

�In sum, the agreement consists entirely of promises made by the employee
to Tesla,� the judge wrote. �It creates a host of claims Tesla might bring against its employee, but none in reverse.�

The arbitration agreement is therefore �unconscionably one-sided,�
according to Keeny.

Hinze, 40, is represented by attorneys from the law office of Gloria
Allred. In the suit brought last Aug. 1, Hinze says he worked as an owner adviser and later a district and regional manager for Tesla for about 10
years.

Hinze �refused to participate in widespread fraud being perpetrated upon Tesla�s customers who brought their cars in for service,� the suit states.

According to the suit, Hinze disclosed to his supervisor that the Burbank
and Torrance service centers fraudulently marked cars as having been
delivered before they were actually returned to customers in order to
enhance repair time scores. Hinze also discussed how the Centinela and
Santa Monica locations cheated the labor productivity metric by stacking correction codes in order to double-dip on labor in a way that customers
would not notice, the suit further states.

In response, the supervisor told Hinze, �You�re good at making excuses�
and advised him to �just get the job done and climb the leader board,� the
suit states.

The stress and anxiety caused by the supervisor�s alleged demands to
engage in fraudulent activity took a physical and psychological toll on
Hinze, who saw told his boss that he had begun seeking medical care and
did not believe he could reach the boss� aggressive targets without
cheating customers.

� Mr. Hinze cared about Tesla and the exposure if customers learned that
some service centers were overbilling them,� the suit states.

However, human resources declined to investigate Hinze�s allegations and
he was fired in December 2023, according to the suit, which seeks
unspecified compensatory and punitive damages.

https://mynewsla.com/crime/2025/02/19/former-tesla-manager-avoids- arbitration-of-wrongful-termination-suit/

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