Tesla Sued by Former Employees Over Unethical Mass Layoffs, Seek Damage Worth 60-Day Notice Period

Tesla was served with a lawsuit by former employees and was filed late Sunday in Texas.

Advertisement
By Reuters | Updated: 21 June 2022 06:02 IST
Highlights
  • The workers allege Tesla failed to adhere to federal laws on mass layoffs
  • They are seeking class action status for all former Tesla employees
  • Tesla didn't immediately respond to requests for comment about lawsuit

re than 20 people identifying themselves as Tesla employees said they were laid off

Photo Credit: Reuters

Former Tesla employees have filed a lawsuit against the US electric car company alleging its decision to carry out a "mass layoff" violated federal law as the company did not provide advance notice of the job cuts.

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

The workers allege the company failed to adhere to federal laws on mass layoffs that require a 60-day notification period under the Worker Adjustment and Retraining Notification Act, according to the lawsuit.

Advertisement

They are seeking class action status for all former Tesla employees throughout the United States who were laid off in May or June without advance notice.

Advertisement

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

Tesla, which has not commented on numbers of layoffs, did not immediately respond to requests for comment about the lawsuit.

Advertisement

Musk, the world's richest person, said earlier this month he had a "super 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 identifying themselves as Tesla employees said they were laid off, let go or had positions terminated this month, according to online postings and interviews with Reuters.

Advertisement

The action filed by John Lynch and Daxton Hartsfield, who were fired on June 10 and June 15, respectively, seeks pay and benefits for the 60-day notification period.

"It's pretty shocking that Tesla would just blatantly violate federal labor law by laying off so many workers without providing the required notice," Shannon Liss-Riordan, an attorney representing the workers told Reuters.

“She said Tesla is offering some employees only one week of severance, adding that she is preparing an emergency motion with a court to try to block Tesla from trying to get releases from employees in exchange for just one week of severance.

The suit was filed in the US District Court, Western District of Texas.

 

© Thomson Reuters 2022


Are Oppo's new flagship phones any good? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Tesla, layoff, EV, US
Advertisement

Related Stories

Popular Mobile Brands
  1. Samsung Galaxy A37, Galaxy A57 May Launch With These Notable Camera Upgrades
  2. Inside the OPPO Find X9 Series: A Smarter Approach to Battery Life
  3. ChatGPT Might Soon Support Skills, Make It Easy to Program Repeat Tasks
  4. Huawei MatePad 11.5 (2026) With 2.5K Display, 10,100mAh Battery Launched
  5. Battle of the Nerds: Godfather of AI, Google DeepMind Chief Argue Over AGI
  6. How Much Water Does AI Use? Consumption Now Exceeds World's Bottled Water
  7. Xiaomi 17 Ultra, Poco X8 Pro Spotted on IMDA Ahead of Global Launch
  1. NASA’s SPHEREx Telescope Delivers First Full-Sky Map, Unlocking Cosmic Secrets
  2. Robotic Arm Achieves 1,000 Tasks in a Day Through Innovative Imitation Learning
  3. Ponies OTT Release Date: Know When to Watch This Emilia Clarke and Haley Lu Richardson starrer web series online
  4. Bhabhi Ji Ghar Par Hain 2.0 Now Streaming Online: What You Need to Know
  5. Paramount's New Offer for Warner Bros. Is Not Sufficient, Major Investor Says
  6. HMD Pulse 2 Specifications Leaked; Could Launch With 6.7-Inch Display, 5,000mAh Battery
  7. WhatsApp Begins Testing Support for Viewing Connected Peripherals
  8. OpenAI Tipped to Add Skills Feature to ChatGPT, Could Be Available as Slash Commands
  9. Is AGI Possible? Godfather of AI and Google DeepMind Chief Caught in War of Words on Social Media
  10. Honor Win Series Camera Specifications Tipped Days Ahead of China Launch
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.