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Tesla: Mass layoff in Nevada forces automaker into court

More than 500 Tesla employees want to take legal action against the electric car manufacturer in the USA. They accuse the company of having fired them without cause and unlawfully. What’s behind the allegations published in a report by news agency Reuters? We take a look.

Gigafactory in Nevada affected

The negative headlines around Tesla do not stop. In particular, the questionable relationship between the company and its employees, which apparently does not fit at all with the relaxed Silicon Valley style of other US companies, sometimes casts a questionable light on the company. Just a few days ago, for example, it became known that the US carmaker is allegedly monitoring its employees. No less in focus is the dazzling tech icon at the head of the company. The latter has been delivering a confusing cat-and-mouse game with Twitter for weeks. Since he decided to buy the short message service, he has been trying to push down the price with crude theories about possible masses of fake accounts. It’s possible that his “bot problem” could actually derail the purchase plans in the home stretch.

And now there’s trouble again. According to rumors we reported on a couple of weeks ago, there will be gigantic job cuts at Tesla. It is possible that a Gigafactory in Nevada, USA, will now play a premiere role. Here, the company apparently terminated more than 500 employees. Two of those laid off, however, did not want to accept their forced departure from Tesla without an appropriate response. Accordingly, they went to the local court to file a lawsuit against the termination. In the course of the proceedings, it turned out that they were not the only employees who were terminated. The wave of layoffs in June affected more than 500 employees.

Tesla allegedly violated federal laws

As the basis for their lawsuit, the two Tesla employees cited Nevada’s mass layoff law. This was simply disregarded by Tesla. In particular, Tesla had not complied with the section of the law dealing with the deadline for appropriate notification. According to the law, the affected employee must be notified 60 days before termination. Tesla, on the other hand, seemed to have made short work of the law. According to the statement of claim, the company merely informed its affected employees that the terminations were effective immediately. In this way, the company at least avoided the obligation to pay wages for the two-month period. Now the two Tesla employees are looking around for fellow sufferers. Together with the 500 or so others affected, they want to file a class action lawsuit against the electric car manufacturer.

It’s pretty shocking that Tesla is so blatantly violating federal labor law by laying off so many employees without giving the required noticeShannon Liss-Riordan, attorney for the plaintiffs

Elon Musk remains relaxed

Controversial Tesla CEO Elon Musk seems to be anything but losing sleep over the lawsuit itself. Surprisingly, he did not comment on the latest allegations on Twitter, but in persona at a business forum in the Arab Emirates.

It seems that anything related to Tesla gets a lot of clicks, whether it’s trivial or significant. The lawsuit you refer to I would put in the trivial category.Elon Musk

However, he should certainly be concerned about his company’s reputation. After all, it is currently hailing negative headlines. On the basis of the action of the manufacturer in the case of the mass dismissal in Nevada one seems to be aware of it also. The attorney on the plaintiff’s side, Shannon Liss-Riordan, has made it public that the company attempted to wipe out those who were laid off by paying them a week’s wages. Many may not have been aware of the relevant federal law. In an effort to stop the consent decree that came with it, the attorney is now challenging its validity as well.

Simon Lüthje

I am co-founder of this blog and am very interested in everything that has to do with technology, but I also like to play games. I was born in Hamburg, but now I live in Bad Segeberg.

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More than 500 Tesla employees want to take legal action against the electric car manufacturer in the USA. They accuse the company of having fired them without cause and unlawfully. What’s behind the allegations published in a report by news agency Reuters? We take a look. Gigafactory in Nevada affected The negative headlines around Tesla … (Weiterlesen...)

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