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Tesla layoffs prompt lawsuit

June 20, 2022 Updated Tue., June 21, 2022 at 4:26 p.m.

Tesla was sued by some former employees who claim the company’s decision to lay off about 10% of its workforce violated federal law by failing to provide the required advance notice for the job cuts.

Two workers fired this month from Tesla’s battery factory near Reno, Nevada, allege the company didn’t comply with the 60-day notification requirement under the Worker Adjustment and Retraining Notification Act, according to the lawsuit they filed late Sunday in Austin, Texas, federal court.

John Lynch and Daxton Hartsfield, who worked at the plant for about five years, were among more than 500 employees at the facility that were let go, according to the suit.

The two men claim neither was given any advance notice of the termination.

They are seeking class-action status for their lawsuit on behalf of others who were part of mass layoffs in May and June.

The so-called WARN Act requires companies to provide 60-day notice before any mass layoff affecting 50 or more employees at a single site.

Biden hopes for no recession

President Joe Biden reiterated that a U.S. recession isn’t “inevitable” following a conversation with former Treasury Secretary Lawrence Summers, who sees a significant chance the country will find itself battling stagflation.

“I was talking to Larry Summers this morning, and there’s nothing inevitable about a recession,” Biden told reporters Monday at Rehoboth Beach, Delaware. “I think we’re going to be able to get a change in Medicare and a reduction in the cost of insulin.”

The White House and congressional Democrats are in talks on legislation that aims to fight inflation, rein in the deficit and revive parts of Biden’s agenda.

The contours of a potential deal remain under negotiation, but the package would likely include capping the price of insulin – a key medicine for diabetics – and federal investments in both clean energy and fossil fuels, people briefed on the talks said last week.

From wire reports It would also further reduce the budget deficit and boost taxes on the wealthy, corporations or both, they said.

Democrats are desperate for a policy response to inflation, which is at a four-decade high and, unless curbed, is all but certain to cost them control of the House, Senate or both in November’s midterm elections.

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