Tesla ordered to tell staff about lawsuit it faces; employers accused of trapping staff into ‘indentured servitude’

Tesla told to tell employees about lawsuit it’s facing

A US judge has ruled that Tesla must tell its employees about a lawsuit it is facing over allegedly violating federal laws by requiring workers to sign separation agreements. The ruling comes after two employees sued Tesla when they were amongst a group of Gigafactory staff let go in a mass layoff. Now, the District Court has ordered that Tesla must continue to inform its employees about the suit “until the merits of plaintiffs’ claims are resolved in federal court or in arbitration proceedings.” More than 500 employees were sacked from Tesla’s Gigafactory in Nevada, after CEO Elon Musk announced plans to lay off 10% of its salaried workforce. According to the lawsuit, the Tesla mass layoff violates the Worker Adjustment and Retraining Notification (WARN) Act. This requires bosses to notify workers at least 60 days’ in advance before shutting down a facility or laying off 50 or more workers from the same site. The lawsuit claims staff were told their terminations would be effective immediately.

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