Tesla Beats Laid-Off Workers’ Bid to Avoid WARN Act Arbitration

Former Tesla Inc. factory workers must arbitrate their mass layoff notice claims without a stay after they failed to convince a federal judge in Texas to reconsider an order booting their suit from the court system entirely.

The workers sought to have their Worker Adjustment and Retraining Notification Act case paused pending arbitration rather than dismissed outright. But they should have objected to the magistrate judge’s report recommending dismissal before the district judge adopted it, the US District Court for the Western District of Texas said.

• The workers should have raised the issue during the 14-day objections period following ...