The lawsuit claimed that the company violated federal law by failing to give notice before the layoffs, and that the former employees are entitled to 60 days of pay and benefits. The lawsuit was filed in the Western District of Texas.
The WARN Act requires the company to give 60 days' advance written notice of mass layoffs. In connection with the mass layoffs. The class members were not given an advance written notice of their dismissal by the company.
The lawsuit said that the employees were notified that they would be terminated immediately.
The WARN Act was enacted in the late 80's. It requires companies with 100 or more employees to give at least 60 days advance written notice of a plant closing and mass layoffs affecting 50 or more employees at a single site of employment. There are exceptions to the requirements when layoffs occur due to unforeseen business circumstances, faltering companies, and natural disasters.
Those who work an average of less than 20 hours a week are excluded from being covered by the WARN Act's notice requirement. 60 days' worth of back pay and benefits can be obtained by laid off employees who don't receive required notice, according to the law.
John Lynch and Daxton Hartsfield were part of the lead lawsuit. The lawsuit seeks class action status on behalf of the former employees of the company who were laid off without notice.
The class members should be paid damages in the amount of 60 days' compensation and benefits for violating their rights under the WARN Act. Wages, salary, commission, bonuses, and accrued pay for vacation and personal days are included in the lawsuit.Advertisement
More than 500 employees were terminated byTesla alone at its Gigafactory 2 plant in Nevada.
The electric carmaker had over 99,000 employees at the end of the year, and CEO Musk revealed a plan to cut 10 percent of them.
The lawsuit was dismissed as trivial by Musk. CNBC reported that Musk said it was a small lawsuit of minor consequence.
The richest man in the world thinks it's trivial that his company is violating federal labor law to protect workers. Two months of pay isn't important to him, but it is important to the employees who made his company what it is.
She said that she is preparing an emergency motion with a court to try to block the release of employees from the company in exchange for one week of severance.
"Because billionaires and company heads will not do right by their workers when left to their own devices, there is a reason we have worker protection laws in this country."
Women are accusing the company of failing to stop rampant sexual harassment at its facilities in California and the LA area. An ex-worker was ordered by a judge to pay fifteen million dollars for disturbing racist abuse.
Musk said at the forum that there would be layoffs at the company. According to CNBC, Musk said that the company would reduce its workforce by 10 percent in the next three months.
A year from now, I think our head count will be higher in both hourly and salaried, according to Musk.
There are reports thatTesla is laying off workers. According to a Friday report by Electrek,Tesla started another wave of layoffs yesterday that included many hourly employees in its sales and delivery teams.