Tesla Failed to Provide Required Notice of Mass Layoff, Class Action Claims

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Two former Tesla employees claim in a proposed class action that the automaker violated federal law by laying off thousands of workers without providing the required 60 days of advance written notice.

According to the 10-page suit, Tesla terminated at least 500 employees, including the two plaintiffs, at its Sparks, Nevada Gigafactory beginning in May or June 2022 without providing any advance notice.

The case explains that the Worker Adjustment and Retraining Notification (WARN) Act requires certain employers to provide workers at least 60 days’ notice in the event of a mass layoff or plant closing. The plaintiffs claim, however, that they were informed on June 10 and June 15, respectively, that their employment was being terminated “effective immediately.”

Per the suit, it has been “widely reported” in the media that Tesla CEO Elon Musk told the company’s top executives sometime in early June that Tesla needed to eliminate 10 percent of its workforce.

The case alleges that the automaker provided neither advance notice of the terminations nor an explanation for why there was no notice given.

According to the lawsuit, former Tesla workers are owed 60 days of compensation and benefits due to the company’s alleged WARN Act violations.

The case looks to represent all former Tesla employees in the U.S. who have not been provided a minimum of 60 days’ written notice of termination and whose employment has been terminated as a result of a mass layoff or plant closing as defined by the WARN Act beginning in approximately May or June 2022.

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