Tesla Settles Claims Over Failure to Warn Workers About Layoff

April 22, 2025, 7:24 PM UTC

Tesla Inc. agreed to end a lawsuit brought by a former worker who alleged the company fired about 14,000 people in 2024 without providing sufficient advance notice of a mass layoff.

Judge Araceli Martinez-Olguin of the US District Court for the Northern District of California ordered the case dismissed with prejudice on Monday, several days after the parties confirmed they had reached a settlement agreement “resolving all matters in dispute.” She noted that the dismissal doesn’t preclude other employees from bringing individual or representative claims against Tesla “in relation to the same facts.”

  • Tesla failed to give the fired workers 60 days of advance written notice as required by the California Worker Adjustment and Retraining Notification Act, according to the complaint filed by Sharon Lane Chin
  • Chin, who worked at a Tesla manufacturing plant in Dublin, Calif., initially sought to represent a class made up of everyone who lost their jobs as part of the mass layoff but later dropped the class claims
  • Eric Lechtzin, a partner with Edelson Lechtzin LLP, which represents Chin, declined to comment on the terms of the settlement, and lawyers for Tesla didn’t immediately respond to questions

Law Offices of Daniel Feder also represents Chin. Morgan, Lewis & Bockius LLP represents Tesla.

The case is Chin v. Tesla Inc., N.D. Cal., No. 3:24-cv-03873, order 4/21/25.


To contact the reporter on this story: Sam Skolnik in Washington at sskolnik@bloomberglaw.com

To contact the editor responsible for this story: Kiera Geraghty at kgeraghty@bloombergindustry.com

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