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Tesla ordered to inform fired employees about lawsuit • londonbusinessblog.com

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A US court has ordered Tesla to notify employees of a lawsuit alleging the automaker violated state and federal law by requiring employees to sign segregation agreements.

Two former Tesla employees filed suit in July, alleging that the company required them to sign indemnities in exchange for less severance pay than California’s federal and state laws provide. Lawyers asked the US District Court for the Western District of Texas to prevent the automaker from asking laid-off employees to sign releases in exchange for just one week’s notice instead of the eight required by the law.

More than 500 other employees were laid off from Tesla’s Gigafactory 2 in Sparks, Nevada, after CEO Elon Musk announced that a coming economic downturn would force the company to lay off 10% of its salaried employees. The court order issued Friday protects workers fired on or after June 19.

The lawsuit — brought by two employees fired in June at Tesla’s Gigafactory 2 in Sparks, Nevada, and another from Tesla’s Palo Alto store — alleges that the company violated Section 1400 of the California Labor Code, as well as federal law. adjustment and retraining of employees Notification Act by dismissing employees without 60 days’ notice.

“Plaintiffs allege that the severance agreements entered into after this lawsuit was filed are coercive, abusive and misleading because Tesla fails to inform fired employees/potential group members of ‘the pending lawsuits and the rights they may be giving up’.” the report said. the court order.

Tesla filed a motion in August to dismiss the claims. On Friday, the Court ruled that the company must continue to inform its employees about the lawsuit “until the merits of the plaintiffs’ claims are resolved in federal court or in arbitration proceedings.”

The court rejected the plaintiffs’ request for wages and benefits before the 60-day notice period.

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