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Saturday, October 10, 2026

Tesla Ex-Employees Sues Company for Allegedly Violating Federal Law on Mass Layoffs - iTech Post

Tesla might be in trouble in a court of law for its recent mass layoff.

The popular automaking company is being sued by two of its former employees for violating federal laws regarding mass layoffs, according to a recent Reuters report.

Tesla CEO Elon Musk remarked to CNBC in an email that the lawsuit is small and, as such, is only of a minor consequence to him and the company.

Tesla Mass Layoff Facts

Tesla reportedly let go of more than 500 workers at its Sparks, Nevada gigafactory due to Musk's wish to reduce its salaried workforce by 10% in the next three months while growing the number of hourly employees at the same time.

According to Shannon Liss-Riordan, the lawyer representing the two workers, Tesla started letting people go while only offering one week of severance pay to some employees. Most of the employees, like John Lynch, were terminated immediately on June 10 after the mass layoff was announced, with Tesla allegedly notifying the 500 employees that their terminations would be effective immediately.

Meanwhile, Lynch's fellow former Tesla co-worker, Daxton Hartsfield, mentioned that he was terminated five days after Lynch, but like him, Hartsfield's termination was effective immediately, per Business Insider.

In the legal complaint, the two former Tesla employees also said that Tesla also failed to provide a statement of the basis for reducing the notification period to days advance notice.

Lynch is one of the two Tesla employees that sued the company.

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Read Full Story: http://www.itechpost.com/articles/111484/20220621/tesla-ex-employees-sues-com...