Elon Musk Clarifies Tesla will Reduce Workforce by 10% as Ex-employees Sue The Car Maker

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On Sunday, two former Tesla employees filed a lawsuit against the company alleging it violated U.S. federal laws regarding “mass layoffs.” Under the Worker Adjustment and Retraining Notification Act, employers are required to give 60 days advance notice of a mass layoff or plant closure.

Musk, the richest person in the world, dismissed the importance of the suit Tuesday, saying it has “no standing.”

“That is a small lawsuit of minor consequence,” he said. “Anything that relates to Tesla gets big headlines, whether it is a bicycle accident or something much more serious.”

Musk’s treatment of workers has been under scrutiny lately. He recently told Tesla employees that they should be in the office at least 40 hours a week or quit.

According to Business Insider “The company has [also] faced allegations of racism against Black workers. In February, the California Department of Fair Employment and Housing sued Tesla over complaints about racial discrimination and harassment.”