Former Tesla employees have filed a lawsuit against the company, arguing that its “mass layoff” violated federal law since workers were not provided advance notice of their firings.
The lawsuit, filed late Sunday in Texas by two workers saying they were fired in June from Tesla’s gigafactory plant in Sparks, Nevada, alleges that more than 500 employees were terminated at the Nevada facility.
The employees claim the company failed to follow federal laws regarding mass layoffs that require a 60-day notice under the Worker Adjustment and Retraining Notification Act, the lawsuit reads.
The workers are seeking class action status for all former Tesla employees throughout the U.S. who were fired in May or June without advance notice.
“Tesla has simply notified the employees that their terminations would be effective immediately,” the lawsuit reads.
This comes after company founder and CEO Elon Musk said in an email earlier this month that he had a “super bad feeling” about the economy and that Tesla had to reduce its payroll by about 10%.
More than 20 former Tesla employees said they lost their jobs this month, according to online postings and media interviews.
The two workers who filed the suit were both fired within the past two weeks and desire pay and benefits for the 60-day notification period.
“It’s pretty shocking that Tesla would just blatantly violate federal labor law by laying off so many workers without providing the required notice,” Shannon Liss-Riordan, an attorney representing the workers told Reuters.
Liss-Riordan said Tesla is offering some employees just one week of severance, and that she is preparing an emergency motion in an effort to stop the company from attempting to get releases from employees in exchange for the one week of severance.
Reuters contributed to this report.