Tesla Faces Lawsuit from Former Nevada Factory Employees Over Job Cuts

After Tesla CEO Elon Musk said the automaker would be cutting 10 percent of salaried staff, the company faces yet another lawsuit from former employees claiming they were laid off without proper notice.

Tesla is being sued by two former employees of its Nevada factory, alleging that the automaker violated U.S. laws against mass layoffs without a 60-day warning, according to The Telegraph.

The lawsuit, filed in Tesla’s headquartering state of Texas, alleges that Tesla breached the Worker Adjustment and Retraining Notification Act, which mandates that workers must be given 60 days of notice and pay through that period for any mass layoffs.

Former Giga Nevada employees John Lynch and Daxton Hartsfield filed the lawsuit, after being laid off by Tesla on June 10 and 15, respectively.

In the lawsuit, the plaintiffs wrote, “Tesla has failed to give plaintiffs and the class members any advance written notice of their terminations. Instead, Tesla has simply notified the employees that their terminations would be effective immediately.”

The filing continues, “Tesla has also failed to provide a statement of the basis for reducing the notification period to zero days advance notice. Tesla’s failure to provide its employees with any advance written notice has had a devastating economic impact on plaintiffs and the class members.”

Musk said in the past few weeks that he had a “super bad feeling” about the U.S. economy, going on to say that Tesla would be cutting around 10,000 people loose from its staff.