Tesla to be sued by former employees

Federal laws require a 60–day notification period

In the wake of the mass layoff carried out by Tesla, former employees of the company have filed a lawsuit against the electric car company. The company allegedly did not provide any advance notice of the job cuts and hence violated federal law. The suit was filed in the U.S. District Court, Western District of Texas. The suit states that more than 500 employees were terminated at the Nevada factory. Federal laws require a 60 –day notification period under the Worker Adjustment and Retraining Notification Act. The petitioners are seeking class-action status for all former Tesla employees who were laid off in May or June without advance notice.

Elon Musk, earlier this month, said he had a "super bad feeling" about the economy and that Tesla needed to cut staff by about 10%, according to an email seen by Reuters. More than 20 people who are former Tesla employees were laid off, let go, or had positions terminated, according to online postings and interviews with Reuters.It's pretty shocking that Tesla would just blatantly violate federal labor law by laying off so many workers without providing adequate notice," Shannon Liss-Riordan, an attorney representing the workers, told Reuters.