Tesla Now Has To Tell People It Laid Off About the Lawsuit Against Them

Tesla abruptly laid off over 500 workers from its Nevada Gigafactory. Now the company is facing a potential class-action lawsuit from those same employees. 
Written by Allison Stone
Reviewed by Kathleen Flear
Oct 5, 2022
Since June,
electric car
manufacturer Tesla has abruptly laid off hundreds of workers following an email from CEO Elon Musk to implement a hiring freeze and cut 10% of salaried staff. 
Now, Tesla must notify those same employees of a proposed class action lawsuit accusing the company of failing to give proper notice.  
Maybe this is why Musk wants to
replace human workers with robots
.
To learn more about the recent layoffs, the proposed lawsuit, and Tesla’s ongoing employment woes, read on with the car ownership experts at Jerry to learn more about the recent layoffs, the proposed lawsuit, and Tesla’s ongoing employment woes. 

Tesla’s massive layoff mess

According to Reuters, Tesla Inc. must notify workers who were laid off in the last three months about the proposed class action lawsuit. The ruling was made by U.S. Magistrate Judge Susan Hightower and could apply to hundreds of workers who have recently left the company. 
Hightower said that separation agreements that Tesla asked workers to sign were possibly misleading, and led employees to waive rights they’d otherwise be entitled to. 
Under federal law, the Worker Adjustment and Retraining Notification (WARN) Act employers with 100 or more employees must give 60 days notice of layoffs. The law does not apply in cases of a natural disaster or unforeseeable business circumstances. 
Hightower also denied a request to bar the company from communicating with potential class members and strike down separation agreements Tesla has accrued since the lawsuit was first filed. 

Were former Tesla employees robbed?

According to Shannon Liss-Riordan, a representative of the plaintiffs, Tesla employees who were entitled to 60 days of pay were manipulated into signing away their rights, instead only receiving a week or two of pay. 
The lawsuit is being spearheaded by two former employees of the Sparks, Nevada gigafactory, which laid off over 500 workers. 
In spite of the implications of this case, Musk seems unphased. In an email from Liss-Riordan, he allegedly called the case “trivial.” 
Tesla is hoping to settle any disputes among workers in arbitration rather than in court. 

What this means for Tesla

Many of the reasons for the layoffs, such as inflation, supply chain issues, and shortages of raw materials are out of the control of the company. How ethically layoffs are handled, however, does have not only material and legal impact, but it affects how the company is viewed by the public. 
Tesla cars remain some of the
best-selling models
on the market, but some consumers may be turned off by the company’s ongoing, high-profile legal troubles. As other automakers continue to add EVs to their fleet, the competition is heating up for the nation’s top EV manufacturer. 
If you’re shopping around for a new Tesla, look to Jerry for the best deals on car insurance. A licensed broker that offers end-to-end support, the
Jerry
app gathers affordable quotes, helps you switch plans, and can even help you cancel your old policy.
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Allstate
AAA
Aig
Chubb
ClearCover
CSE
Dairyland
DirectAuto
Elephant Auto Insurance
Kemper
Libertymutual
Gainsco
Mapfre
Mercury Auto
Metromile
Nationwide
Plymouth Rock
Progressive
State Auto
Safeco
Travelers
Metlife
Bristol West

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