Lawsuit filed over Tesla’s layoffs alleging insufficient notice for California employees

Tesla Inc. is facing a lawsuit from a former employee who alleges that the company’s recent decision to lay off approximately 10% of its workforce globally violated the law by failing to provide the required advance notice.

The complaint, filed in state court in San Jose, California, asserts that Tesla breached California law by not giving a 60-day warning as mandated. The lawsuit accuses Tesla of acting intentionally and with deliberate indifference to the rights of its employees.

Tesla CEO Elon Musk announced the layoffs in an email to staff last week, citing the need to reduce costs and eliminate duplicated roles. If applied company-wide, the layoffs would affect more than 14,000 employees.

Tesla encountered comparable allegations when it laid off over 500 employees at its battery factory near Reno, Nevada, in 2022. The company successfully obtained a ruling that transferred the dispute out of federal court in Austin, Texas, and into arbitration.

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