Tesla sued by ex-employee who claims mass layoffs violated federal law

Tesla is being sued by two former employees of its Sparks, Nevada Gigafactory over massive layoffs, Reuters reported. They claim that more than 500 workers were fired without 60 days’ notice, in violation of federal law. “Tesla merely notified employees that their terminations would be effective immediately,” the complaint states. They are seeking class action status without notice on behalf of any U.S. Tesla employee who was fired in May or June.

This US Warning Act Require companies to provide 60 days’ notice before any mass layoffs, according to in some cases. The idea is to give employees enough time to find other jobs or retrain. One of the workers who filed the lawsuit, John Lynch, said he was notified on June 10 that he was immediately fired.

“Tesla started blatantly ignoring the WARN Act and starting layoffs,” attorney Shannon Liss-Riordan (representing workers) told Bloomberg — added that Tesla offered only one week of severance pay to some employees. She is preparing an emergency motion to block Tesla’s attempts to release employees from employees in exchange for a week of severance.

After news of the lawsuit broke, Musk told NBC Finance Channel In an email, Tesla will reduce its salaried workforce by 10% while increasing its hourly workforce. He said salaried workers make up about two-thirds of Tesla’s workforce, so in total the layoffs will affect about 3.5 percent of workers. Musk added: “A year from now, I think our headcount will be higher, both by salary and by the hour.”

Earlier this month, Musk said he said job losses were coming after he told Tesla executives that he planned to cut the aforementioned 10% workforce, saying he had “super bad feeling“On the economy. Thousands of Tesla workers have it is said Recently released across the U.S., many suffered “devastating economic effects,” according to the lawsuit.

However, Musk told NBC Finance Channel Litigation doesn’t matter. “It’s a small lawsuit with little consequence,” he said. “Anything that has to do with Tesla is going to make headlines, whether it’s a bicycle accident or something more serious.”

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