Tesla is facing a major lawsuit from its ex-employees. The multinational automotive company is known around the world for its electric vehicles, but it is more known for its controversial CEO Elon Musk.
Recently, the company has been in the news for its working conditions and mass layoffs. As a result of this, two former employees are suing the company.
Ex-Employees Of Tesla Seek Legal Action As Company Lays Off 50 Employees With 2 Weeks Of Pay
John Lynch and Daxton Hartfield first filed their lawsuit against Tesla on June 19. The pair is seeking class-action status. The duo has entered an emergency plea asking the Texas court to block the automaker from enforcing separation agreements with laid-off staff.
Both had their positions terminated as part of recent company-wide layoffs and argued that the company did not comply with the Worker Adjustment and Retraining Notification Act (WARN). It mandates companies give 60 days of notice before terminating more than 50 employees at the same site.
Lynch and Hartfield worked for the Nevada branch. According to the lawsuit, the company laid off 500 staff in the state. In the plea filed on Tuesday, they have asked the court to stop Tesla from making laid-off employees sign separation agreements that grant only one or two weeks’ severance pay.
Details Of The Lawsuit Filed Against The Tech Giant
The lawsuit filed by the workers talks about the clauses of the agreements. One of which says that it would give Tesla full release from legal claims. It also mentions that the laid-off staff should be entitled to 60 days of pay and benefits, according to the WARN Act.
The plea included sworn declarations from six other Tesla employees who were let go with their separation agreements. The agreements included one or two weeks’ pay plus two months of health insurance benefits. They also included a clause releasing the mega tech company from “any and all claims.”
“If left unchecked, Tesla may succeed in cutting off the rights of thousands of potential class members … without them even knowing about this case and their rights,” the plea read. Tesla is yet to comment on this lawsuit.
