The lawyers representing the two ex-employees have filed an emergency motion asking a judge to prohibit the EV automaker from forcing them to sign releases in exchange for less severance than federal law allows.
The company did not give the 60 days of advance notice required by federal law during a recent round of layoffs, according to the lawsuit.
According to the complaint, John Lynch and Daxton Hartsfield were let go in June along with hundreds of other employees. The terminated workers had a devastating economic impact due to the lack of written notice.
According to the motion,Tesla has been encouraging the employees who are being laid off to sign a severance agreement in exchange for a modest severance payment. That is less than the employees would be entitled to.
The motion seeks class action status on behalf of employees who have no reason to know their rights.
In June, Musk said that the company would lay off 10% of its workforce. That number has been rolled back by Musk.
The company did not reply to the request for comment.