What happened now? Tesla is facing a lawsuit filed by two former employees over allegations that its decision to lay off about 10% of its employees violated federal law because the company did not give those affected advance notice of the cuts.
Reuters writes that employees of its Sparks, Nevada Gigafactory filed a lawsuit in Texas on Sunday. It states that 500 employees were laid off from the plant without a 60-day notice period, which is in violation of the Workers Adaptation and Retraining Notice (WARN) act.
John Lynch and Duxton Hartsfield, who have worked at the plant for about five years, were among those fired this month, according to the lawsuit. They say neither received advance notice of termination on June 10 and 15, respectively, and they are now seeking class-action status on behalf of any American Tesla employees fired in May or June who also did not receive advance notice.
The WARN law requires companies to notify workers 60 days in advance of any layoffs affecting an additional 50 employees, giving them enough time to find another job or retrain.
“Tesla has started laying off people because of its blatant disregard for the WARN law,” Boston employment lawyer Shannon Liss-Riordan, who represents workers, said in a statement. bloomberg.
Earlier this month, Tesla chief Elon Musk told executives he wants to cut 10% of the company’s jobs and suspend hiring due to his “very bad feeling” about the economy. He explained CNBC that the figure represents only salaried workers, while the number of hourly workers will increase. However, this still means that about 3.5% of Tesla’s entire workforce is being laid off, an amount that he says is “not very significant.”
“I think that in a year our headcount will be higher in both salary and hourly pay,” Musk added.
The world’s richest man also addressed the lawsuit, saying it was “not legally binding” and was “a small lawsuit with little impact.”
Elsewhere in the interview, Musk said that he believes a recession is “inevitable at some point” and that it will happen in the near future “rather than not” but “not necessarily.”
Musk has been criticized in the past for demanding Tesla and SpaceX workers spending at least 40 hours a week in the office or quitting. He also said that employees should work at the company’s main office and not in a remote location.