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.

Advertisement

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.

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. Dell's Pro Precision Workstation Lineup Debuts in India: See Price, Features
  2. Realme Narzo 100x 5G Confirmed to Launch in India on This Date
  3. Redmi Note 17 Pro Battery, Charging Details Confirmed
  1. Samsung Galaxy Z Flip 8 Could Mark the End of Flip the Company's Foldables, Tipster Claims
  2. WhatsApp Might Be Working on a Birthday Notification Feature for Saved Contacts
  3. Samsung Galaxy Tab S12+ Listed on Safety Korea Certification Database With Live Images: Report
  4. BSNL Satellite Phone With Inmarsat Connectivity Launched in India: Price, Features
  5. Redmi Note 17 Pro Battery, Display Details Teased as Handset Surfaces on Taiwan's NCC Database
  6. Xiaomi 18 Pro Detailed Specifications Leaked, Might Feature Two 200-Megapixel Cameras, Snapdragon 8 Gen 6 Series Chip
  7. Samsung Galaxy Z Fold 8 Ultra Could Borrow Galaxy S26 Ultra Camera Features, Tipster Claims
  8. Xbox Game Pass Has Reportedly Lost 4 Million Subscribers Since 2024
  9. Google Photos Updated With Video Remix Feature Powered By Gemini Omni
  10. Dell Pro Precision 5, Pro Precision 7, Pro Precision 7 T1 Series Launched in India With Up to Intel Core Ultra Series 3 Chips
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.