Two former Tesla employees are suing the company

21 June, 2022
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Two former Tesla employees are suing the company

Two former employees of Tesla are suing the US electric car company, claiming that its decision to implement a "mass layoff" violated federal law because the company did not notify workers in advance of the measure.

The two employees said in the lawsuit, which they filed late Sunday in Texas, that they were laid off from work at the giant Tesla plant in Sparks, Nevada, in June. The lawsuit says the company terminated more than 500 employees at the Nevada plant.

The two employees in the lawsuit allege that the company failed to comply with federal laws on mass layoffs that require a 60-day notice period.

The two employees are seeking to represent in the lawsuit all former Tesla employees across the United States who were laid off by the company in May or June without prior notice. 

"Tesla simply notified employees that their termination will be effective immediately," the lawsuit reads.

Tesla has not yet commented on the lawsuit, nor has it commented on the number of layoffs.

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

More than 20 people who identified themselves as Tesla employees said they were laid off, quit their jobs or were terminated this month, according to Reuters and online interviews. John Lynch, who was fired by Tesla on June 10, and Duxton Hartsfield, whose service was terminated on June 15, are demanding wages and benefits for the 60-day notice period.

"It is absolutely appalling that Tesla is blatantly violating federal labor law by laying off so many workers without the required notice," Shannon Lees Riordan, a lawyer representing the workers, told Reuters.

She added that Tesla is offering some employees only one week's worth of severance payments, adding that it is preparing an emergency court application to try to prevent Tesla from trying to obtain a discharge from employees in exchange for this very limited compensation.

The lawsuit was filed in the US District Court for the Western District of Texas.


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