AUSTIN (KXAN) – Former employees filed a lawsuit in Austin against Tesla, Inc., claiming they were terminated without being provided sufficient advanced written notice.
The class action complaint, filed June 19, claimed Tesla violated the Worker Adjustment and Retraining Notification (WARN) Act by not providing proper notice to the former employees.
“Tesla is required to provide Plaintiffs and Class Members with the required sixty (60) days advance written notice of a mass layoff,” the lawsuit said.
The former employees claimed they were terminated as part of the mass layoffs beginning in May or June 2022. The plaintiffs include John Lynch, Daxton Hartsfield and other former employees in the U.S. who did not get the 60-day notice.
According to a June report from Reuters, Tesla’s CEO Elon Musk said Tesla needed to eliminate 10% of its total workforce.
“Tesla has simply notified the employees that their terminations would be effective immediately,” the lawsuit said. “Tesla has also failed to provide a statement of the basis for reducing the notification period to zero days advance notice.”
The lawsuit said each plaintiff seeks 60 days’ worth of compensation and benefits since Tesla violated their rights under the WARN Act.
According to a section of the WARN Act, there are exemptions to certain employers were exempt from the notice requirements of the Act, but the lawsuit claimed none of the exemptions applied to Tesla.
Records showed the lawsuit was filed in Austin, but the plaintiffs worked and resided in Nevada. The lawsuit claimed the Austin court had jurisdiction over this matter because Tesla was headquartered in and conducted substantial business operations in the district.