US electric car maker Tesla laid off more than 500 employees in June, without meeting the 60-day notice period. Now the former employees want to defend themselves with a class action.
US electric car maker Tesla is pilloried in Texas on suspicion of mass layoffs without respecting the notice period. Two former workers said they were laid off in June at the Sparks Gigafactory without warning, according to the lawsuit filed on Monday.
As a result, Tesla put more than 500 employees on the road in June. Under US labor law, a notice period of 60 days is required for such a mass layoff.
“Tesla simply informed employees that their terminations would go into effect immediately,” the lawsuit reads. Former employees are filing a class action. The company could not be reached immediately for comment.
Thousands of jobs will be cut
Former employees ask for wages and benefits for the 60 days. “It is quite shocking that Tesla is in such a blatant violation of federal labor laws by firing so many workers without meeting the required deadline,” attorney Shannon Liss-Riordan, representing the plaintiffs, told Reuters.
Tesla is offering some employees a one-week severance pay. They are therefore preparing an emergency application so that the group cannot redeem itself with the low severance pay. Tesla boss Elon Musk announced earlier this month that he would be cutting thousands of jobs at the electric car maker out of fear of a recession.