Tesla Should Receive Arbitration in Mass Layoff Suit, Judge Says

Tesla Inc.'s motion to compel arbitration in a suit it faces from more than 500 Nevada factory workers it laid off en masse should be granted, a Texas magistrate judge said.

Judge Susan Hightower also recommended the court dismiss the laid off workers’ complaint. They claim Tesla violated federal law by requiring workers to sign separation agreements and failing to provide 60 days’ notice of the layoffs.

The case is Lynch v. Tesla, W.D. Tex., No. 22-cv-597, 9/26/22.