Former employees are suing Tesla, they believe that Tesla’s mass layoffs violated federal law, because Tesla layoffs without advance notice. Two former employees sued Tesla on Sunday after they were laid off in June after working at the Tesla factory in Sparks, Nevada.
More than 500 workers were laid off at the Nevada plant, according to the lawsuit. The plaintiffs argue that under federal law, employers are required to give at least 60 days’ notice to lay off workers, which Tesla did not do. The plaintiffs are suing Tesla on behalf of employees who were laid off without notice in May or June.
Earlier in the month, Musk said he had a very bad feeling about the economy, and he said Tesla would lay off 10% of its workforce. Two former employees who sued Tesla, who was laid off on June 10 and 15, demanded 60 days of compensation and benefits from Tesla.
” It’s a pre-emptive lawsuit, it’s not tenable, and we shouldn’t over-interpret it, ” Musk said at the Qatar Economic Forum on Tuesday. “It seems like everything about Tesla is available. A lot of hits, whether it’s trivial or important news. For the lawsuit you’re referring to, I put it in the trivial category.”
Shannon Liss-Riordan, a lawyer representing the workers, said Musk, who is the richest man in the world, was worrisome to say that the violation of federal labor protection laws was trivial. Riordan also said: “While it’s true that two months’ salary is not a big deal for Musk, it is important to the employees, and it is the employees who make the business.”
Riordan said Tesla only paid employees one week of severance pay, and she is preparing to file an emergency application to the court to prevent Tesla from laying off employees in exchange for a week of severance pay.
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