In a filing in federal court, Tesla said the workers who were terminated signed valid agreements to bring employment-related legal disputes in arbitration and to refrain from participating in class-action lawsuits
on Thursday asked a U.S. court to dismiss a lawsuit claiming the electric car maker violated federal law by laying off hundreds of workers without advance notice.
Even if the case remained in court, it should be dismissed because the company was merely “rightsizing” by firing poorly performing workers and not engaging in layoffs that require advance notice, Tesla said.The federal Worker Adjustment and Retraining Notification Act requires businesses to notify workers of mass layoffs at least 60 days in advance unless they are caused by natural disasters or “unforeseeable business circumstances.
The plaintiffs are seeking class action status for all former Tesla employees throughout the United States who were laid off in May or June without notice. The company in Thursday’s filing said it routinely asks terminated workers to sign waivers, and that the agreements are proper because no worker was asked to sign one after the lawsuit was filed. Some courts have found that waivers signed by workers while a lawsuit is pending are invalid.
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