Ex-employees sue Musk for mass layoffs

Ex-employees sue Musk for mass layoffs

Two former Tesla employees have recently sued Elon Musk for mass layoffs. Their colleagues who also suffered the termination may soon follow suit. The workers accused Tesla’s management of violating the federal law that requires US employers to give notice before terminating workers. John Lynch said he was informed about his dismissal on June 10, while Daxton Hartsfield learned about it on June 15, which were the actual dates of their dismissal. According to the lawsuit, at least 500 employees who worked at Tesla’s factory in Nevada lost their jobs all at the same time. The existing regulation requires the employer to notify workers 60 days in advance prior to laying off 50 or more people from the same enterprise. Tesla, on the contrary, provided no explanation on why it reduced “the notification period to zero days,” the plaintiffs said. John Lynch and Daxton Hartsfield are seeking compensation and benefits for 60 work days. “It’s pretty shocking that Tesla would just blatantly violate federal labor law by laying off so many workers without providing the required notice,” Shannon Liss-Riordan, an attorney representing the workers, said. In late 2021, Tesla employed around 100,000 people worldwide. Earlier, Elon Musk warned that the company was planning to cut its workforce. In the next three months, the number of employees is expected to reduce by 10%. The reason for this might be the risk of a recession in the US.


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