New Tesla Lawsuit Claims Automaker Failed to Provide 60 Days’ Advance Notice of April 2024 Layoffs

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A proposed class action lawsuit alleges Tesla ran afoul of federal and California law when it failed to provide affected employees at least 60 days’ advance notice prior to terminations announced in mid-April 2024.

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The 15-page Tesla lawsuit accuses the electric vehicle maker of violating the federal Worker Adjustment and Retraining Notification (WARN) Act and the California Worker Adjustment and Retraining Notification Act and claims the company owes proposed class members wages and benefits for 60 days, “none of which has been paid.”

On or around April 14 of this year, Tesla announced it would be terminating more than 10 percent of its global workforce, including thousands of people at its Dublin, California manufacturing facility where the plaintiff worked as a parts advisor, the filing says. Per the case, the mass Tesla layoff at issue resulted in roughly 14,000 people losing their jobs at the facility “without cause on their part.” 

CNBC reports that since the end of 2023, Tesla has cut more than 14 percent of its global workforce, and CEO Elon Musk is reportedly aiming to slash 20 percent of staff overall. 

Tesla owes terminated employees 60 days’ worth of lost wages, salaries, commissions, bonuses, accrued holiday pay, 401(k) contributions, health insurance and other fringe benefits, the filing alleges. 

The electric vehicle maker is subject to WARN Act regulations given that it employed more than 100 employees who in aggregate worked at least 4,000 hours per week, exclusive of overtime, in the United States, the lawsuit says. Moreover, the Tesla layoffs resulted in the loss of employment for at least 50 full-time workers, as well as at least 33 percent of the workforce, at the Dublin plant, the complaint adds. 

The Tesla layoffs lawsuit looks to cover all Tesla employees who were terminated from the Dublin, California facility on or around April 14, 2024 as part of a mass layoff or plant closing. 

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