Tech

Tesla is sued by former employees who say mass layoffs violate federal law


Tesla is being sued by two former employees from its Sparks, Nevada factory over mass layoffs, Reuters reported. They allege that more than 500 workers were laid off at the factory without 60-day notice, in violation of federal law. “Tesla has only notified employees that termination of their contracts will be effective immediately,” the complaint states. They are seeking class action status on behalf of any Tesla US employee laid off in May or June without notice.

The US WARN Act requires companies to provide 60 days’ notice before any mass layoffs, according to certain circumstances. The idea is to give employees enough time to find another job or retrain. One of the workers who filed the lawsuit, John Lynch, said he was notified June 10 that he would be terminated from his contract effective immediately.

“Tesla started firing people for disregarding the WARN Act,” said attorney Shannon Liss-Riordan, who represents the workers. Bloomberg – added that Tesla only offered one week of severance pay to some employees. She’s preparing an emergency offer in an effort to stop Tesla from trying to get employees back in exchange for a week of severance pay.

Thousands of Tesla workers have reported were distributed throughout the United States, and many people suffered “devastating economic impacts,” according to the lawsuit. Earlier this month, CEO Elon Musk told Tesla executives in an email that he planned to cut about 10% of jobs, according to Reuterssays he has a “super bad feeling“about the economy.

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