Former Tesla Inc (TSLA.O) employees have filed a complaint saying that the company's plan to conduct a "mass layoff" violated federal law by failing to offer advance notice of the job reduction.
Two workers filed the case late Sunday in Texas, alleging that they were fired from Tesla's gigafactory plant in Sparks, Nevada, in June.
More than 500 employees were laid off at the Nevada facility, according to the lawsuit.
According to the lawsuit, the workers claim the corporation failed to follow federal regulations on mass layoffs, which require a 60-day notice period under the Worker Adjustment and Retraining Notification Act.
They are requesting class action status on behalf of all former Tesla employees in the United States who were laid off without warning in May or June.
The complaint stated, "Tesla has merely advised the employees that their terminations will be effective immediately."
Tesla did not immediately reply to demands for comment on the complaint, despite the fact that it has not commented on the number of layoffs.
According to an email reviewed by Reuters, Tesla CEO Elon Musk, the world's richest person, indicated earlier this month that he had a "very awful feeling" about the economy and that Tesla needs to slash workers by approximately 10%.
According to internet forums, more than 20 persons claiming to be Tesla employees reported they were laid off, let go, or had their jobs terminated this month.
John Lynch and Daxton Hartsfield, who were fired on June 10 and June 15, respectively, have filed a lawsuit seeking salary and benefits for the 60-day notice period.
"It's quite astounding that Tesla would simply brazenly violate federal labour law by firing off so many individuals without providing the appropriate notice," said Shannon Liss-Riordan, a lawyer for the workers.
She claims Tesla is only providing certain employees one week of severance, and she is drafting an emergency move with a court to prevent Tesla from attempting to obtain employee releases in return for only one week of severance.
The complaint was dismissed by Musk as "trivial."
"Let's not read too much into a pre-emptive action with no standing," he remarked at the Bloomberg-sponsored Qatar Economic Forum.
"Whatever is associated to Tesla, whether minor or major, appears to garner a lot of hits. That litigation you're talking to falls into the inconsequential category, in my opinion."
The lawsuit was filed in the Western District of Texas of the United States District Court.
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