The lawsuits are stacking up against Elon Musk after former employees of Tesla filed a lawsuit over “mass layoffs.”
The suit was filed on Sunday, June 18, by two former employees who said they were fired from Tesla’s gigafactory plant in Sparks, Nevada in June.
They claim the decision violates federal law because the layoffs were not announced in advance
The suit alleges Tesla dismissed over 500 employees at the Nevada plant, violating federal regulations governing mass layoffs, which require a 60-day notice period under the Worker Adjustment and Retraining Notification Act.
They are requesting class-action status for all former Tesla employees in the United States who were laid off without notice in May or June.
The complaint said: “Tesla has simply notified the employees that their terminations would be effective immediately.”
Tesla has not even commented on the number of layoffs and did not immediately reply to requests for comment on this issue.
Musk stated earlier this month that he had a “very awful feeling” about the economy and that Tesla needs to slash approximately 10% of its workforce.
More than 20 Tesla employees said they were laid off, let go, or had their positions terminated this month.
John Lynch and Daxton Hartsfield, who was fired on June 10 and June 15, respectively, have filed a lawsuit seeking salary and benefits for the 60-day notice period.
Shannon Liss-Riordan, an attorney representing the workers said: “It’s pretty shocking that Tesla would just blatantly violate federal labor law by laying off so many workers without providing the required notice.”
She claims Tesla is only providing certain employees one week of severance, and she is drafting an emergency motion with a court to prevent Tesla from attempting to obtain releases from employees in return for only one week of severance.
The suit is the latest to be launched against Musk.
It was was recently revealed a Dogecoin investor is suing Tesla and SpaceX for a staggering $258 billion for an alleged “pyramid scheme.
Musk is also being sued by Twitter investors over his $44 billion takeover of the social media giant over alleged stock manipulation.