Former workers of Tesla, the American automotive firm owned by Elon Musk, have reportedly filed a suit against the EV manufacturer claiming that the firm’s decision to conduct a mass layout violates federal law as the firm did not provide prior notice of the job layoffs.
Two employees who claimed they were fired from Tesla's Gigafactory facility in Sparks, Nevada in June filed suit late Sunday in Texas. Over 500 workers at the Nevada factory were laid off, the lawsuit claims.
As per the lawsuit, the employees have claimed that while conducting mass layoffs the firm violated federal laws, which call for a 60-day notice period in compliance with the Worker Adjustment and Retraining Notification Act.
They are also seeking class-action status for all ex-Tesla employees across the country who were terminated without any prior notice in May or June of this year.
The lawsuit stated that the US EV manufacturer had just told the employees that they are fired effective immediately.
According to sources, Musk, the American billionaire stated earlier this month that he had a ‘very awful feeling’ about the economy and that Tesla needs to reduce personnel by roughly 10%.
As per interviews and online postings, over 20 individuals who claim they worked for Tesla stated that they were fired, laid off, or had their careers terminated this month.
Daxton Hartsfield and John Lynch, who were terminated on June 15 and June 10, respectively, filed a lawsuit asking for benefits and compensation for the 60-day notice period.
Shannon Liss-Riordan, the attorney representing the employees, stated that it is shocking that Tesla would just brazenly violate federal labor law by firing so many workers without giving the requisite notice.
Liss-Riordan added that she is drafting an emergency motion with the court to try to prohibit Tesla from seeking to secure releases from employees in return for just a week of severance. She claimed that Tesla is only giving certain employees severance for one week.
The lawsuit was filed in the United States District Court of the Western District of Texas.