On Tuesday two laid off Tesla workers filed an emergency motion to try and stop Tesla from pursuing separation agreements for far less severance than they allege is legally required.
The motion, filed in Texas, alleges that Tesla has been asking employees it is laying off to agree to release the carmaker from all claims. In return it is offering a severance of just one or two weeks pay and benefits.
The workers allege that under labor law, the Worker Adjustment and Retraining Notification (WARN) Act guarantees that they are entitled to 60 days of pay and benefits.
The two workers had been employed at Tesla’s Gigfactory in Sparks Nevada. They were among the 500 employees laid off from that facility in May and June.
The motion said, “Employees who have lost their jobs are typically eager to get whatever additional pay that they can get and have no reason to know that they are entitled to more due to Tesla’s violations of the WARN Act. In short, Tesla hopes to buy off these class members’ claims for pennies on the dollar.”
The same two employees had previously filed another lawsuit in June, where they alleged Tesla had carried out a “mass layoff,” without providing a legally required 60-day notice.
Tesla has been in the midst of a layoff of about 10% of its salaried employees. Some are being shifted to hourly positions, and CEO Elon Musk has said that overall he expects total staff numbers will grow.
Tesla has already laid off about 200 hourly employees who worked on its Autopilot program when it shuttered its San Mateo, California office.