According to a lawsuit filed by two former employees against Tesla (NASDAQ: TSLA), the EV-maker allegedly failed to provide 60 days of advance notice during a recent round of layoffs. This notice period is required by federal law through the Worker Adjustment and Retraining Notification Act.
The lawsuit, filed by John Lynch and Daxton Hartsfield in the US District Court for the Western District of Texas, seeks class-action status for employees of the company that were laid off in the US in May or June without the 60-day notice, as well as pay and benefits for the 60-day notice period.
According to the filing, “Tesla has simply notified the employees that their terminations would be effective immediately.” The company also allegedly failed to provide a basis for reducing the notice period to zero.
Reports say that in leaked internal emails sent by CEO Elon Musk, he had a “super bad feeling” about the economy. Tesla has suffered major production drawbacks precipitated by the Covid lockdowns in Shanghai, and while the American EV maker still tops the global market, Bloomberg reports that Volkswagen is projected to overtake Tesla in 2024.
At an event hosted by Bloomberg on Tuesday, Musk, who over the years has been reported multiple times to be involved in the questionable treatment of employees in his companies, dismissed the lawsuit.
“That is a small lawsuit of minor consequence,” he said. “Anything that relates to Tesla gets big headlines, whether it is a bicycle accident or something much more serious.”
Information for this briefing was found via Reuters, MSNBC and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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