Tesla Inc. allegedly fired two California-based employees in violation of labor laws for being part of a wider group that was discussing and drafting letters critical of Chief Executive Officer Elon Musk, according to their attorneys and complaints they filed with federal regulators.
(Bloomberg) — Tesla Inc. allegedly fired two California-based employees in violation of labor laws for being part of a wider group that was discussing and drafting letters critical of Chief Executive Officer Elon Musk, according to their attorneys and complaints they filed with federal regulators.
One draft letter asked Tesla executives to reconsider the strict return-to-office policy that Musk announced in late May. Another protested Musk’s tweets, saying they violated Tesla’s anti-harassment policy. One employee, who got a raise in May, was terminated in June. The other was fired a few days later and was told their employee discussions were “an attack” on Tesla, according to the Dec. 15 filings with the National Labor Relations Board.
Both employees said they were fired for discussing “Tesla’s failure to enforce its non-harassment policy and its implementation of its post-Covid return to office policy,” according to the complaints. The draft letters were never sent internally at Tesla.
Tesla did not respond to a request for comment.
See also: Twitter Users Vote for Elon Musk to Step Down as CEO
Shares of the company gave up early gains Monday, falling 1.5% to $147.98 as of 11:16 a.m. in New York. The stock is down about 58% this year.
SpaceX Complaint Echo
The complaints echo those made in June by several employees at SpaceX, the rocket launch and satellite company where Musk also serves as CEO. Those fired workers wrote an open letter that called Musk’s behavior “a frequent source of distraction and embarrassment for us,” and asked SpaceX leadership to condemn and distance itself from Musk’s “personal brand.”
SpaceX did not respond to a request for comment.
Musk has long been highly active on Twitter — a platform he now owns. Besides announcing updates on his various companies, he often shares crude jokes and memes that have rankled employees.
In May, Musk announced a strict return-to-office policy, saying, “Everyone at Tesla is required to spend a minimum of 40 hours in the office per week.”
US law prohibits companies from retaliating against workers for taking collective action related to their working conditions, with or without a union, according to lawyers specializing in labor law.
The Tesla employees are represented by Laurie Burgess and Anne Shaver, two San Francisco attorneys who also represent the SpaceX employees.
Read more: Terminated SpaceX Workers File Labor Complaint
“These unfortunate firings at Tesla are part of a broader pattern across Elon Musk’s companies of a total disregard for workers’ legal rights,” said Shaver, an attorney at Lieff Cabraser Heimann & Bernstein LLP. “It is illegal to fire employees for organizing for better workplace conditions, including the right to a harassment-free workplace.”
Claims filed with the NLRB are investigated by regional officials. If they find merit in the allegations and can’t secure a settlement, they can issue a complaint on behalf of the board’s general counsel.
Complaints are considered by agency judges, whose rulings can be appealed to the NLRB members in Washington, and then to federal court. The agency has the authority to order companies to reinstate fired workers and provide back pay, but generally can’t hold executives liable for alleged wrongdoing or levy punitive damages.
NLRB members ruled last year that Tesla repeatedly violated labor law, including by firing a union activist and via a threatening tweet sent by Musk. Tesla has denied wrongdoing and is appealing that ruling in federal court.
(Updates with Tesla shares in fifth paragraph.)
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