Former Tesla employees have filed a lawsuit against the company alleging that its decision to conduct “mass layoffs” violated federal law because the company did not provide advance notice of job cuts.
The lawsuit was filed by John Lynch and Daxton Hartsfield, who were fired on June 10 and June 15 respectively, seeking pay and benefits for a 60-day notification period. They said they were terminated from Tesla’s Gigafactory plant in Sparks, Nevada, in June.
According to the suit, more than 500 workers were fired at the Nevada factory.
According to the lawsuit, the workers alleged that the company failed to comply with federal laws on mass layoffs, which require a 60-day notification period under the Worker Adjustment and Retraining Notification Act.
They are demanding class action status for all former Tesla employees across the United States who were laid off in May or June without any advance notice.
“Tesla has only informed employees that their dismissals will be effective immediately,” the complaint said.
Tesla, which did not comment on the number of layoffs, did not immediately respond to requests for comment about the lawsuit.
Musk, the world’s richest man, said earlier this month that he had “super bad feelingRegarding the economy and the need for Tesla to cut staff by about 10%, according to an email seen by Reuters.
Read also: Tesla job cuts: Elon Musk says total workforce to grow, retracts earlier statement
According to online postings and interviews with Reuters, more than 20 people identifying themselves as Tesla employees said they had been laid off, let go or terminated this month.
Shannon Liss-Riordan, an attorney representing the workers, told Reuters: “It is very shocking that Tesla violated federal labor law by laying off so many workers without giving the necessary notice.”
She said that Tesla is offering some employees only one week of severance, adding that it wants to file an emergency with a court to prevent Tesla from trying to obtain a release from employees in exchange for only one week of severance. Preparing proposal.
The lawsuit was filed in the US District Court, Western District of Texas.