Tesla Beats Worker Bid to Undo Mass-Layoff Arbitration on Appeal

Former Tesla Inc. factory workers must arbitrate allegations that the company failed to comply with mass layoff notice requirements, after the Fifth Circuit rejected their bid to revive the litigation.

The district judge “committed no error” in sending the case to arbitration before the Elon Musk-led electric vehicle firm gave other fired workers notice of their potential Worker Adjustment and Retraining Notification Act claims as a magistrate judge recommended, the US Court of Appeals for the Fifth Circuit said Wednesday in an unpublished opinion.

The workers, who lost their jobs as part of Tesla’s 2022 effort to trim its ...