I’m reading there will be lots of lawsuits by fired employees. Not sure how this is legal. Can those with contracts sue if the company is sold to someone else?
“I’m reading there will be lots of lawsuits by fired employees. Not sure how this is legal. Can those with contracts sue if the company is sold to someone else?”
As I understand it, the lawsuits are based on the notification time required for a layoff.
But I’ve been involved in layoffs (I did payroll so had to be involved) and don’t recall any lengthy notification process.
Though the laws may have been changed since.
They have no legal standing. The official seperation date is Feb 2, 2023. That satisfies the WARN Act.
If former employees do try to sue, they will likely lose out of any seperation package. The lawyers and politicians won’t care. They will use this for self-promotion.
California is an “At-will” employment State. Very few, if any, would be on an employment contract. The only thing they need to worry about is the WARN Act...and giving more than two month’s severance covers that. Most employee lawsuits will go nowhere.
For what, though. He's paying them for a full three months while they are not working.
It's not like he hung them out to dry.
the lawsuits were all predicated on them being terminated today, and were based on some absurd law requiring 60 days notice. Since that’s not what is actually happening, they have no lawsuits to file.
What would their complaint be? They have time to look for another job while they’re still getting paid as employees, although deactivated, and they have more than 60 days notice if February is when they are no longer employed.
California is a right to work state. Yes it’s legal and the letter made it very clear it is notice and it is more than sixty days so yes it’s legal
It is a restructuring
It has to do with the federal law giving 60 days notice. MusK is giving them 90 day notices. The lawsuits won’t fly.