Tesla sues former employees over "mass layoffs"

Tesla sues former employees over “mass layoffs”

Tesla’s logo can be seen in Los Angeles, California, USA, January 12, 2018. REUTERS / Luci Nicholson / File Photo

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June 20 (Reuters) – Former employees of Tesla Inc. (TSLA.O) have filed a lawsuit against the American company for the production of electric cars, stating that its decision to make a “mass layoff” violated federal law because the company did not notify the cut in advance.

The lawsuit was filed late Sunday in Texas by two workers who said they were fired from Tesla’s gigafactory in Sparks, Nevada, in June. According to the lawsuit, more than 500 employees were fired at the factory in Nevada.

The workers state that the company did not comply with the federal laws on mass dismissals, which require a 60-day period of notification according to the Law on Adjustment and Retraining of Workers, according to the lawsuit.

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They are seeking class action status for all former Tesla employees across the United States who were fired in May or June without prior notice.

“Tesla simply informed the employees that their dismissals will take effect immediately,” the complaint states.

Tesla, which did not comment on the number of dismissals, did not immediately respond to requests for comment regarding the lawsuit.

Musk, the richest person in the world, said earlier this month that he had a “super bad feeling” about the economy and that Tesla should have reduced its staff by about 10 percent, according to an e-mail seen by Reuters. More

More than 20 people who identify as Tesla employees said they were fired, fired or had their jobs terminated this month, according to online announcements and Reuters interviews. More

The lawsuit, filed by John Lynch and Duxton Heartsfield, who were fired on June 10 and 15, seeks payment and benefits for a period of 60 days.

“It is quite shocking that Tesla would simply obviously violate federal labor law by firing so many workers without providing the required notice,” Shannon Lis-Riordan, a lawyer representing the workers, told Reuters.

She said that Tesla is offering some employees only one week of severance pay, adding that she is preparing an urgent request before the court to try to prevent Tesla from trying to get dismissals from employees in exchange for only one week of severance pay.

The lawsuit was filed in the U.S. District Court, West District of Texas.

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Reporting to Akrita Sharma in Bengaluru and Hyunjo Gin in San Francisco; edited by Richard Pullin

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