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Tesla sued former employees for “mass redundancy”



(Reuters) – Former Tesla Inc. employees have filed a lawsuit against the U.S. electric car company, claiming that its decision to carry out a “mass layoff” violated federal law because the company did not give prior notice of the cuts.

The lawsuit was filed late Sunday in Texas by two workers who said they were fired from Tesla’s gig factory in Sparks, Nevada, in June.

According to the lawsuit, more than 500 employees were laid off at the plant in Nevada.

The workers claim that the company failed to comply with federal laws on mass redundancies that require a 60-day notice period under the law on notice of work adjustment and retraining, according to the lawsuit.

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

“Tesla has simply informed employees that their redundancies would take effect immediately,”

; the complaint said.

Tesla, which has not commented on the number of redundancies, did not immediately respond to requests for comment on the lawsuit.

Tesla’s CEO Elon Musk, the world’s richest man, said earlier this month that he had a “super bad feeling” about the economy and that Tesla needed to reduce its workforce by about 10%, according to an email seen by Reuters.

More than 20 people who identified themselves as Tesla employees said they had been fired, released or had services fired this month, according to online posts and interviews with Reuters.

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

“It’s quite shocking that Tesla would just plainly violate federal labor laws by dismissing so many workers without giving the necessary notice,” Shannon Liss-Riordan, a lawyer representing the workers, told Reuters.

She said that Tesla offers some employees only one week’s severance pay, and added that she is preparing an emergency with a court to try to block Tesla from trying to get releases from employees in exchange for just one week’s severance pay.

Mr Musk downplayed the trial as “trivial”.

“Let’s not read too much into a precautionary trial that has no position,” he said at the Qatar Economic Forum hosted by Bloomberg.

“It seems like everything related to Tesla gets a lot of clicks, whether it’s trivial or significant. I would put the lawsuit you are referring to in the trivial category.”

The lawsuit was filed in the U.S. District Court, Western District of Texas.


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