Two former Tesla employees have filed a lawsuit against Tesla, alleging the mass layoffs violate federal law.
In early June, CEO Elon Musk said Tesla should cut 10% of its workforce, according to Reuters.
The two former employees want to claim 60 days of pay and benefits.
In a lawsuit filed Sunday, two former Tesla employees allege that the electric car maker has broken federal law by firing hundreds of employees at short notice.
On June 2, Tesla CEO Elon Musk sent an internal email to executives saying he had a “super bad feeling” about the economy and told the company to lay off about 10% of its workforce. Reuters†
In the coming days, two employees at Tesla’s Gigafactory in Sparks, Nevada, say they have been laid off, according to a court document seen by Insider. John Lynch said he was informed of his immediate resignation on June 10, while Daxton Hartsfield said he was informed on June 15 and was fired on the same day.
Lynch and Hartsfield, who filed the lawsuit, said at least 500 of their colleagues in Nevada lost their jobs around the same time, the document shows.
The court document revealed that the plaintiffs stated that Tesla’s actions violated the… Act notification of adjustment and retraining employee, which requires employers to give employees at least 60 calendar days notice before closing a factory or laying off 50 or more employees in the same location.
“Tesla simply notified employees that their termination would be effective immediately. Tesla also made no statement as to the basis for shortening the notice period to zero days’ notice,” the court document said.
Lynch and Hartsfield want to claim 60 days of pay and benefits. They are also seeking class action status for the lawsuit for those terminated in May and June without adequate notice.
“It’s pretty shocking that Tesla would just blatantly violate federal labor law by firing so many employees without giving the required notice,” said Shannon Liss-Riordan, a Boston-based attorney representing the employees. Reuters on Monday.
Tesla employed about 100,000 people worldwide at the end of 2021, according to a Filing with the Securities and Exchange Commission†
Others have also claimed they were fired on short notice
Others claiming to be former Tesla employees have also talked about layoffs shortly after Musk’s internal email about laying off 10% of Tesla’s workforce.
A LinkedIn user based in Austin whose profile says he was a Tesla recruiter, shared that the company recently fired him. A San Francisco user who claims to be a software engineer said he was fired by Tesla four days ago. Christopher Bousigues, Tesla’s Singapore country manager, said in a message last week that he had been fired. Bousigues declined Insider’s request for comment.
Liss-Riordan and Tesla did not immediately respond to Insider’s request for comment, which was sent outside of normal business hours.
Read the original article Business Insider
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