Tesla, run by Elon Musk, must notify its employees of a lawsuit it is facing for allegedly violating federal laws by forcing workers to sign separation agreements, a U.S. judge says. Electric car maker Tesla was sued by two employees in June, who were fired in the company’s mass layoff.
John Lynch and Daxton Hartsfield, who worked at Tesla’s Gigafactory in the state of Nevada, said in the lawsuit that they were among “more than 500” Gigafactory employees who were laid off.
The district court ordered Tesla to continue to notify its employees of the lawsuit “until plaintiffs’ claims are resolved in federal court or arbitration,” TechCrunch reports.
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Tesla had filed a motion last month to dismiss the complaints. More than 500 other employees have been laid off from Tesla’s Gigafactory in Nevada, after CEO Elon Musk announced the layoff of 10% of its salaried workforce.
According to the lawsuit, Tesla’s mass layoff violates the Worker Adjustment and Retraining Notification (WARN) Act. The law requires employers to give workers at least 60 days notice before closing a facility or laying off 50 or more workers at the same site. “Tesla failed to give plaintiffs and class members written notice of their termination,” the lawsuit reads.
“Instead, Tesla simply informed the employees that their dismissal would take effect immediately. Nor did Tesla provide a statement on the basis of which it reduced the notice period to zero days’ notice,” she added.
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