Allegedly turfed workers claim Tesla broke federal law in a mass layoff as part of company-wide job cuts.
A new lawsuit seeking class-action status claims that Tesla broke federal law by abruptly firing thousands of workers and denying them two months’ pay. The legal action is the latest in a flurry of allegations to hit the electric car maker as it navigates what could be a rough patch amid supply chain issues and other economic woes.
Former Tesla employees John Lynch and Daxton Hartsfield allege they were among thousands of workers fired recently amid company-wide cuts.
The U.S. WARN Act applies to businesses with 100 or more full-time employees or 100 or more employees who collectively work at least 4,000 hours per week excluding overtime. Like the California WARN Act, which covers businesses with 75 or more employees, it is intended to give workers advance notice that they will lose their job in a mass layoff or plant closure.
“Tesla has not acted in good faith nor with reasonable grounds to believe their acts and omissions were not a violation of the WARN Act,” the suit alleged.Tesla did not immediately respond to questions about the lawsuit’s claims and which facilities may be seeing job losses. The company, by far the nation’s biggest electric vehicle producer, runs a large plant in Fremont that Musk said in April may be significantly expanded.
The legal action by Lynch and Hartsfield follows a blizzard of lawsuits in recent years over working conditions at Tesla facilities. California’s civil rights regulator is suing the company, alleging Black workers at Tesla’s Fremont factory were paid less than White workers, denied advancements and faced daily racist abuse. Tesla has called the suit the “misguided” result of a “bare bones investigation” and said the carmaker “strongly opposes all forms of discrimination and harassment.
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