Tesla ex-employees sue company over 'mass lay-off'

Edited By: Manas Joshi
Texas Updated: Jun 21, 2022, 08:26 AM(IST)

Shareholders will vote on Tesla's proposed stock split on August 4 Photograph:( Reuters )

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The workers are saying that Tesla has violated federal laws by not providing adequate notice before lay-offs

Former employees of electric carmaker Tesla have filed a lawsuit against the company. The employees are saying that the 'mass layoff' violated federal law since company didn't provide notice of job cuts.

The lawsuit was filed late on Sunday in Texas. The two workers who have filed the lawsuit have said that they were terminated from Tesla plant in Nevada in June. The lawsuit says that more than 500 employees were terminated at the factory. 

The workers allege the company failed to adhere to federal laws on mass layoffs that require a 60-day notification period under the Worker Adjustment and Retraining Notification Act, according to the lawsuit.

The ex-employees are seeking class action status for all former employees throughout US who were laid off in May/June without notice

"Tesla has simply notified the employees that their terminations would be effective immediately," the complaint said.

Tesla, which has not commented on numbers of layoffs, did not immediately respond to requests for comment about the lawsuit.

Musk, the world's richest person, said earlier this month he had a "super bad feeling" about the economy and that Tesla needed to cut staff by about 10%, according to an email seen by Reuters.

More than 20 people identifying themselves as Tesla employees said they were laid off, let go or had positions terminated this month, according to online postings and interviews with Reuters.

The action filed by John Lynch and Daxton Hartsfield, who were fired on June 10 and June 15 respectively, seeks pay and benefits for the 60-day notification period.

(With inputs from agencies)

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