Former employees sue Tesla over mass layoff

The lawsuit against Tesla was filed by two former employees from the factory in Nevada, and claims that over 500 workers were terminated without due notice.

Former employees sue Tesla over mass layoff

Tuesday June 21, 2022,

1 min Read

Two former Tesla employees who were laid off from the Nevada Gigafactory recently have filed a lawsuit against the electric vehicle giant.

The lawsuit alleges that the company's decision to layoff more than 500 workers during May and June without due notice constitutes a breach of the workers' rights.

According to Reuters, the core issue was Tesla's decision to terminate these employees "effective immediately". The lawsuit says that the Worker Adjustment and Retraining Notification Act requires companies to provide at least a 60-day notice period for any mass layoff.

"Tesla has simply notified the employees that their terminations would be effective immediately," the complaint said.

The lawsuit is also seeking class action status by hoping to include all employees that were laid off by Tesla in May and June.

Earlier this month, Tesla chief Elon Musk had tweeted that he had a "super bad feeling" about the economy and that around 10 percent of Tesla's workforce may have to be let go off.

Additionally, Musk had recently sent out an internal email asking all Tesla staff to return to office immediately, and that those employees who wished to continue working from home could find new jobs.

Edited by Megha Reddy