Former Tesla Inc (TSLA.O) workers have filed a lawsuit against the U.S. electric vehicle business, claiming that the company’s decision to conduct a “mass layoff” violates federal law since the company did not offer prior notice of the job layoffs.
Two employees who claimed they were fired from Tesla’s gigafactory facility in Sparks, Nevada, filed the complaint late Sunday in Texas. According to the lawsuit, over 500 workers were laid off at the Nevada business.
According to the complaint, the employees claim the corporation violated federal regulations on mass layoffs, which require a 60-day notice period under the Worker Adjustment and Retraining Notification Act.
They are seeking class action status for all former Tesla workers in the United States who were laid off without notice in May or June.
“Tesla merely informed the workers that their terminations would be effective immediately,” according to the lawsuit.
Tesla, which has not commented on the number of layoffs, did not reply quickly to requests for comment on the case.
According to an email obtained by Reuters, Musk, the world’s wealthiest person, said earlier this month that he had a “very awful feeling” about the economy and that Tesla needs to slash workers by approximately 10%.
According to online posts and interviews with Reuters, more than 20 Tesla workers claimed they were let off, let go, or had their careers terminated this month.
John Lynch and Daxton Hartsfield, who were dismissed on June 10 and June 15, respectively, have filed a lawsuit seeking salary and benefits for the 60-day notice period.
“It’s quite astounding that Tesla would simply brazenly violate federal labor law by firing off so many individuals without giving the appropriate notice,” said Shannon Liss-Riordan, an attorney for the workers.
She claims Tesla is only providing certain workers one week of severance, and she is drafting an emergency move with a court to prevent Tesla from attempting to get releases from employees in return for just one week of severance.
The lawsuit was filed in the United States District Court for the Western District of Texas.
Akriti Sharma in Bengaluru and Hyunjoo Jin in San Francisco contributed reporting, and Richard Pullin edited the piece.