Former Tesla employees have filed a complaint saying that the firm’s plan to conduct a “mass layoff” violates federal law since the company failed to offer advance notice of the job layoffs.
The lawsuit was filed late Sunday in Texas by two workers who claimed they were fired from Tesla’s Giga factory plant in Sparks, Nevada in June. More than 500 employees were laid off at the Nevada factory, according to the lawsuit.
According to the lawsuit, the workers claim the corporation failed to follow federal laws on mass layoffs, which require a 60-day notice period under the Worker Adjustment and Retraining Notification Act.
They are requesting class-action status for any former Tesla employees who were laid off without warning in May or June across the United States.
The complaint stated, “Tesla has merely advised the employees that their terminations will be effective immediately.”
Tesla did not immediately reply to demands for comment about the case, despite the fact that it has not commented on the number of layoffs.
According to an email reviewed by Reuters, Musk, the world’s richest man, indicated earlier this month that he had a “very awful feeling” about the economy and that Tesla needs to slash workers by approximately 10%.
According to online postings and interviews with Reuters, more than 20 Tesla employees said they were let off, let go, or had their careers terminated this month.
John Lynch and Daxton Hartsfield, who was fired on June 10 and June 15, respectively, have filed a lawsuit seeking salary and benefits for the 60-day notice period.
“It’s astonishing that Tesla would just blatantly violate federal labor law by firing off so many individuals without providing the appropriate notice,” said Shannon Liss-Riordan, an attorney for the workers.
She said that Tesla is only providing one week of severance to some employees and that she is preparing an emergency motion with a court to prevent Tesla from attempting to obtain employee releases.