Current Events in June 2022

Inflation is hitting just about everyone, but a new survey shows that it’s hitting America’s working men and women – those who work for hourly wages instead of salaries – the hardest.

A Harris Poll of hourly workers, commissioned by DailyPay and Funding Our Future, reveals how quickly rising prices have resulted in a reversal of fortunes in many households. Thirty-nine percent of women in the survey said they are saving less money than they did last year. Another 40% of hourly workers with a household income of less than $100,000 said they are saving less than last year or not at all.

The prices of some products are causing more distress than others. Eighty-one percent of hourly workers in the poll reported that higher gas prices have made it difficult to pay other expenses.

When asked to list the expenses that are causing financial hardships, 49% of respondents mentioned groceries, 48% listed gasoline, 40% said utility bills are causing economic distress, and 34% said it is harder to pay their rent or mortgage.

While these expenses are going up, many hourly workers said their incomes are not. Thirty-five percent said they haven’t received a raise in over a year. The less money these workers earn, the more likely they are to say their pay has remained flat.

The importance of emergency savings

All of these financial worries are taking a toll on personal well-being, with 77% of hourly workers saying their health has suffered because of financial worries.

"First the pandemic's immediate economic fallout, now record inflation and high gas prices have reminded us how important financial security and flexibility are for American families," said Shai Akabas, director of economic policy at the Bipartisan Policy Center. "It's crucial that we increase access to tools like emergency savings accounts and on-demand pay that help workers save for and weather turbulent times."

Previous research has made it abundantly clear that millions of people don’t have nest eggs available to cushion inflation’s blow. Last month, LendingClub Corporation published research showing that nearly two-thirds of the U.S. population lives paycheck to paycheck.

By its very definition, living paycheck to paycheck means you aren’t putting any money in savings or building an investment portfolio. As long as they pay their bills on time, these consumers remain creditworthy. However, it could take just one unexpected car or home repair bill -- or an increase of $5 a gallon for gasoline -- to change that.

A new study conducted by the researchers from the University of Virginia Health System explored the new safe-sleep guidelines from the American Academy of Pediatrics. The goal of the new recommendations – which encourage parents to keep infants on their backs on flat, level surfaces to sleep – is to protect infants from sudden infant death syndrome (SIDS). 

“The best way to protect your baby while they are asleep is to follow these guidelines,” said researcher Dr. Rachel Moon. “When you place your baby for sleep, they should be on their back in a crib, portable crib, or bassinet that meets Consumer Product Safety Commission standards, and there should be nothing but the baby in the crib.” 

Promoting safe sleep habits

Experts say parents need to do everything possible to make their babies’ sleeping environment as safe as possible and that their recommendations will help guide those efforts. 

Keeping infants on their backs to sleep isn’t a new recommendation, but the researchers are reinforcing the importance of this sleeping position. They also say parents should avoid putting any stuffed animals, pillows, or blankets in the crib or bassinet with their babies.

While many infants are likely to fall asleep in their car seats or strollers, the team says this shouldn’t be a habit. Infants – especially those under four months old – shouldn’t be regularly sleeping on anything inclined. 

They also explained that breastfeeding and using pacifiers were linked with lower levels of SIDS. 

What to avoid

The recommendations highlight a few other things that parents should avoid when creating sleeping habits for their infants. For starters, any items that are marketed toward reducing the risk of SIDS are likely to be ineffective. They noted that there is no official evidence that any such products can be protective of infants’ health. 

Additionally, they recommend that parents stop swaddling when their babies are around three or four months old. Once they start becoming more mobile, swaddling can be dangerous and increase the risk of suffocation. 

The researchers hope these guidelines help parents keep their infants safe and reduce some of the worries around proper sleeping habits. 

“These recommendations are consistent with prior guidelines, with some updates based on new information,” said researcher Dr. Fern Hauck. “We want to reach new parents, grandparents, and other infant caregivers so that everyone is aware about how best to keep their baby safe. We also want parents to know that it is important to speak to your baby’s doctor about the guidelines and have an open discussion so that you can share your thoughts and make the best choices in caring for your baby.”

Brookshire Grocery Company of Tyler, Texas, is recalling bulk yellow flesh peaches available in stores between April 15, 2022, and May 17, 2022.

The product may be contaminated with Listeria monocytogenes. No illnesses have been reported to date.

The recalled product, which was imported from Chile and may have a PLU sticker with the words “CHILE” and “TREE RIPE YELLOW PEACH” and the numeral 4044, was old at Brookshire’s, Super 1 Foods, Spring Market, and FRESH by Brookshire’s retail stores in Texas, Louisiana, and Arkansas.

What to do

Customers who purchased the recalled product should dispose of it immediately.

Consumers with questions may contact Brookshire at (888) 937-3776.

Jungle Jumparoo of American Fork, Utah, is recalling about 350 Jungle Jumparoo children’s toys.

The toys’ yellow poles contain levels of lead that exceed the federal lead content ban. Lead is toxic if ingested by young children and can cause adverse health issues.

No incidents or injuries have been reported.

This recall involves Jungle Jumparoo children’s toys with a blue metal base, a black rubber tube, and two blue, green, red, and yellow vertical metal poles to hold onto when jumping. They measure 77 inches tall by 55 inches wide by 55 deep. Only the large Jungle Jumparoo toys are included in this recall.

The Jungle Jumparoo logo and the phrase “a wild way to bounce” are printed on the tube.

The toys, manufactured in China, were sold online at Amazon, Bed Bath and Beyond, Fun and Function, JungleJump, The Grommet Flaghouse, and Wayfair from November 2018, through March 2019, for about $350.

What to do

Consumers should immediately stop using the recalled toys and contact Jungle Jumparoo for information on how to properly dispose of the yellow poles and how to receive free replacement poles, including shipping.

Jungle Jumparoo is contacting all known purchasers directly.

Consumers may contact Jungle Jumparoo toll-free at (888) 980-5867 from 9 a.m. to 5 p.m. (MT) Monday through Friday or online for more information.

Hyundai Motor America is recalling two model year 2021-2022 Accents.

A bolt in the steering column may not be secured properly. This could cause the steering column to detach from the steering rack and result in a loss of steering control.

Loss of steering control can increase the risk of a crash.

What to do

Dealers will inspect and tighten the lower steering column u-joint retention bolt -- as necessary -- free of charge.

Owner notification letters are expected to be mailed on July 5, 2022.

Owners may contact Hyundai customer service at (855) 371-9460. Hyundai's number for this recall is 226.

President Biden is asking Congress to suspend the federal gasoline tax for three months to provide help to consumers who are struggling to fill their tanks.

The price at the pump peaked last week at $5.01 per gallon but has since pulled back slightly. Today, the national average for regular gas is $4.95 a gallon.

The proposal so far has been met with some skepticism. Chris Robinson, a senior analyst at Lux Research, says the federal tax holiday would provide minimal relief.

“Prices at the pump have increased from roughly $3.00 per gallon one year ago to roughly $5.00 per gallon nationally today,” Robinson told ConsumerAffairs. “As the federal gasoline tax is only $0.18, it only addresses a small fraction of the increase in prices to consumers.”

How much would consumers save?

If the average consumer purchases 50 gallons of gasoline per month, the savings would amount to $9 per month – or less than $30 over the three-month period. It’s also not clear whether every station would lower the price of gasoline by 18 cents per gallon. There is no federal rule that would require them to do so.

Assuming all gas stations passed along the full savings of the tax holiday to consumers, Patrick DeHaan, head of petroleum analysis at GasBuddy, has done a deeper dive into drivers of specific vehicles and has posted estimated three-month savings on Twitter. Here's what he says drivers could save:

• Pickup truck: $66.24

• Fullsize SUV: $55.20

• Minivan/Mid-size SUV: $44.16

• Fullsize: $35.28

• Compact: $26.52

$6.3 billion in lost revenue

DeHaan also estimates that a federal gas tax holiday would cost the federal highway trust fund $6.3 billion in lost revenue.

The proposal comes amid the president’s war of words with leaders of the petroleum industry. In recent weeks, Biden has accused oil refiners of taking advantage of the oil shortage to increase profits. Oil executives have countered by pointing out that refineries are operating at near capacity. These officials have criticized the Biden administration's energy policy for being hostile to their industry.

“While the Biden administration has put some pressure on oil and gas companies to respond to high prices with increased supply, companies are hesitant to invest capital into refining capacity due to the threat of a decrease in demand from electric vehicle sales,” Robinson said.

Upwards of 1,300 Southwest Airlines pilots who say they are fed up with being overworked and understaffed have taken to the picket line at Love Field in Dallas. The protest is the latest volley between Southwest and the Southwest Airlines Pilots Association (SWAPA). The union and the airline have been locked in a two-year struggle to forge a new contract.

Among the reasons why its members are picketing Southwest, SWAPA officials say the number of days that pilots have lost to schedule mismanagement in the last year has eclipsed 20,000. Union officials also say there have been 164,084 days over the last 12 months that SWAPA pilots have voluntarily flown to get SWA passengers to their destinations. 

“We’re aware that some off-duty pilots are participating in informational picketing today,” Southwest said in a statement. “Southwest Airlines respects the rights of our employees to express their opinions, and we do not anticipate any disruption in service as a result of this single demonstration.”

What this means for Southwest passengers

The fact that the picketing was “informational” should give Southwest passengers a huge sigh of relief since it may not have a huge impact on flights. However, conditions aren't exactly ideal for travelers right now.

A wave of flight cancellations hit the U.S. unexpectedly over the weekend, bringing some trepidation for the rest of the summer with it. Pilot shortages have been pegged as the number one reason why airlines have canceled thousands of flights for the summer season.

Although Southwest has canceled 20,000 flights for the summer flying season, an analysis of data from FlightAware shows that it only had six flight cancellations on Tuesday and two on Wednesday. It currently has no cancellations slated for Thursday or Friday. 

Despite near record-high gas prices and jammed airports, millions of Americans are expected to take a trip over the upcoming July 4th holiday.

AAA has predicted that 47.9 million people will travel at least 50 miles from home over the holiday period, which extends from June 30 through July 4. That’s an increase of 3.7% over holiday travelers in 2021 and could approach the travel volume in 2019, the last year before the pandemic.

Even though gas prices have recently retreated from $5 a gallon, the number of people who will travel by car could hit a new record. AAA estimates that 42 million Americans will hit the road.

Airline turmoil

The turmoil that is gripping the airline industry could be a factor for those who choose to travel by ground instead of air. Over the just-completed Father’s Day-Juneteenth holiday, the nation’s airlines canceled about 5,000 flights -- in some cases because they couldn’t staff enough flight crews.

On Sunday – a day on which many travelers were trying to return home – airlines canceled 900 flights, with travelers using Delta Air Lines being the hardest hit.

"A variety of factors continue to impact our operations, including challenges with air traffic control, weather, and unscheduled absences in some work groups," Delta said in a statement. “Canceling a flight is always our last resort, and we sincerely apologize to our customers for the inconvenience to their travel plans." 

Airlines have been slowly paring back their flight schedules over the last two months because of a lack of personnel, including pilots. Even so, AAA says Americans are still in the mood to get out of the house after more than two years of the COVID-19 pandemic.

“The volume of travelers we expect to see over Independence Day is a definite sign that summer travel is kicking into high gear,” said Paula Twidale, senior vice president of AAA Travel. “Earlier this year, we started seeing the demand for travel increase and it’s not tapering off. People are ready for a break and despite things costing more, they are finding ways to still take that much-needed vacation.”

Gas price movement is unpredictable

As for people driving to their holiday destinations, Patrick DeHaan, head of petroleum analysis at GasBuddy, says it’s hard to know what to expect at the gas pump.

“We are seeing a decline right now, but how long that lasts is hard to know, given wholesale gas prices are up sharply today,” DeHaan told ConsumerAffairs. “I think we could see a decline for another five to eight days, but then prices could bottom out and may inch back up for now. I don't expect much significant relief barring a recession as demand for gasoline remains high.”

President Biden’s request to Congress to suspend the federal gasoline tax for three months is unlikely to be passed before the holiday and would only lower prices by 18 cents a gallon. As of today, the national average price of regular gas is $4.95, down only slightly from its recent record high of $5.01 a gallon.

The month of June is Pride Month, and officials at the Federal Trade Commission (FTC) are taking time to warn the LGBTQ+ community about certain scams. In particular, the agency says LGBTQ+ dating apps like Grindr and Feeld could be used by scammers for extortion. 

Scammers reportedly use these apps by posing as a potential romantic partner, which isn’t unusual as a way of someone introducing themselves on a dating app. However, the next steps are where things get dicey. FTC officials say scammers will engage a victim with chat messages and then send explicit photos. They'll then ask for similar photos in return.

“If you send photos, the blackmail begins,” the FTC said. “They threaten to share your conversation and photos with your friends, family, or employer unless you pay — usually by gift card.” 

The agency said it has received reports that some scammers threaten people who are “closeted” or not yet fully “out” as a member of the LGBTQ+ community. Scammers may pressure these users to send money or risk having their explicit photos or conversations publicly exposed. 

How to protect yourself

Given the sensitive nature of these scams, the FTC says consumers should remain cautious and skeptical of messages they receive on dating platforms. Here are some other recommendations that officials say LGBTQ+ dating app users can take: 

Don’t share personal information with someone you just met on a dating app. That includes your cell phone number, email address, and social media profile.

Check out who you’re talking to. Do a reverse image search of the person’s profile picture to see if it’s associated with another name or with details that don’t match up. Those are signs of a scam.

Don’t pay scammers to destroy photos or conversations. There’s no guarantee that scammers will destroy any photos or messages they collect. The FBI also advises against paying extortion demands because it supports criminal activity.

If you spot a scam, you can report it to the FTC here.

Inflation is alive and well on the used car lot. After more than a year of increasing prices for used cars and trucks, a new report shows that prices for these vehicles surged by another 16.9% year-over-year in May.

According to iSeeCars.com’s latest analysis of nearly 2 million used car sales in May, the microchip shortage continues to impact the automotive industry because it has created a shortage of new cars. That spillover demand continues to stoke the price of used vehicles.

Karl Brauer, executive analyst at iSeeCars.com, says 2022’s surge in gasoline prices has added to price pressures on certain types of used cars, particularly those that use less gas.

“We are also seeing a significant increase in demand for used hybrid and electric vehicles as a result of high gas prices, with the cost of electrics increasing by 37.7% and hybrid cars increasing by 32.1% compared to last year,”  Brauer said.

The biggest price spikes

For example, the price of a Hyundai Sonata Hybrid is $8,530 more than it was a year ago, a 12-month increase of 47.8%. The electric Nissan Leaf costs $7,829 more than last year, a 41.4% price increase. A used Tesla Model S increased in value by more than $22,000 in the last year, pushing its price tag up to $80,000.

Even with record-high gas prices, consumers might have a hard time justifying those kinds of price increases to just save a few bucks at the gas pump. The iSeeCars analysis found that some less fuel-efficient vehicles haven’t gone up in price as much, perhaps making them smarter buys for consumers who are in the market for a used car. 

“While these used models are still more expensive than last year, they haven’t been as drastically impacted by price hikes,” said Brauer.

Vehicles with smaller price hikes

A used Chevrolet Camaro only costs $101 more than it did in May 2021, a 0.3% increase. The popular Ford F-150 pickup might use a lot of gas, but the analysis shows that it only sold for an average of $1,221 more than it did a year ago.

The full-size Nissan Armada has also posted a very modest price increase over the last 12 months. In May, it sold for $1,256 more than in May 2021.

“The Nissan Armada is one of the slowest-selling vehicles in the segment, and the demand for this gas-guzzling vehicle has likely dropped further amid high gas prices,” said Brauer.

New cars sell for above sticker price

It’s not just used cars that are experiencing price hikes. New car prices have risen too, with the average brand new car continuing to sell above the sticker price. New car buyers are also seeing far fewer incentives like cash back and low-interest financing.

Brauer said the car shortage isn’t likely to end soon, and prices will remain elevated. He advises consumers to hold onto their present vehicles if possible. Otherwise, he suggests choosing a used vehicle that is not so much in demand.

A new study conducted by researchers from the University of Melbourne explored how childhood health outcomes may linger into adulthood. According to their findings, contracting bronchitis before the age of seven may increase the risk of lung disease and respiratory concerns in middle age. 

“This is the first very long-term prospective study that has examined the relationship between childhood bronchitis severity with adult lung health outcomes,” said researcher Dr. Jennifer Perret.

“We have seen already that children with protracted bacterial bronchitis are at an increased risk of serious chronic infective lung disease after two to five years, so studies like ours are documenting the potential for symptomatic children to develop lung conditions, such as asthma and lung function changes, up to mid-adult life.” 

Long-term respiratory health risks

The researchers analyzed data from over 8,500 people enrolled in the Tasmanian Longitudinal Health Study. They tracked the participants' health outcomes for more than four decades and asked participants about their health histories and current health status. 

The study showed that nearly 48% of the participants had been diagnosed with bronchitis during childhood. The more severe the case of bronchitis was during childhood, the more likely the participants were to be diagnosed with asthma or pneumonia in middle age. 

“Compared with the majority who never had bronchitis, there was an incremental increase in risk for later asthma and pneumonia, which strengthened the more often a person has suffered from bronchitis as a child, and especially if they had recurrent episodes which were prolonged for at least one month in duration,” Dr. Perret said. 

“It is notable that the link with later adult active asthma was seen for participants who did not have co-existent asthma or wheezing in childhood, and a similar finding has been recently seen in a very large meta-analysis of school-aged children who had had a lower respiratory tract infection during early childhood.” 

Knowing that respiratory health during childhood can have lasting effects into adulthood, the researchers hope more medical professionals pay close attention to their young patients who struggle with lung health. 

“Collectively, these findings provide novel insights into the potential natural history of severe bronchitis in children,” the researchers wrote. “Importantly, they support initiatives to enhance awareness among primary care physicians to promote the timely diagnosis and management of protracted episodes of cough in children with close monitoring for subsequent development of asthma and other complications such as bronchiectasis.” 

Freshpet is recalling a single lot of Freshpet Select Fresh From the Kitchen Home Cooked Chicken Recipe.

The product may be contaminated with salmonella.

There have been no reports of illnesses, injuries, or adverse reactions to date.

The recalled product -- which comes in a 4.5 lb. bag with UPC code 627975011673 and a Sell by Date of 10/29/22 -- may have been sold at some Walmart stores in Alabama and Georgia, as well as in certain Target stores and other select retailers in Connecticut, Massachusetts, Maine, New Hampshire, New Jersey, New York, Pennsylvania, Puerto Rico, Rhode Island, Vermont, and West Virginia.

What to do

Consumers who have questions or would like to report adverse reactions may contact the firm at (800) 285-0563 Monday through Friday from 9 a.m. to 9 p.m. (EDT) and on Saturday and Sunday from 9 a.m. to 1 p.m. (EDT).

If you’ve been using electronic devices for a while, you’ve likely got a box full of Lightning ports, USB-A, USB-B, USB-C, Micro-USB cables, and who knows what else that’s needed to charge your devices.

Research shows that consumers own an average of three different charging devices, yet 40% say they have been unable to locate a compatible charger to power up their device. To fix that problem, three U.S. Senators have approached Commerce Secretary Gina Raimondo with a plan to implement uniform charging accessory standards.

Sens. Ed Markey, Bernie Sanders, and Elizabeth Warren pitched Raimondo their theory that electronics manufacturers are producing consumer goods that rapidly become obsolete and require replacing. They say this planned obsolescence causes financial stress and 11,000 tons of e-waste annually from discarded and unused chargers.

Thank you, EU

The senators admitted that they took their inspiration for the idea from the European Union (EU). Two weeks ago, the EU decided to limit manufacturers to one charger for frequently used small- and medium-sized portable electronic devices. It also said consumers should be given the option to choose whether they want to purchase a new device with or without a charging device

“We commend the Department of Commerce for the steps it has already taken to address these issues, and we urge you to follow the EU’s lead by developing a comprehensive strategy to address unnecessary consumer costs, mitigate e-waste, and restore sanity and certainty to the process of purchasing new electronics,” the lawmakers wrote in their letter to Secretary Raimondo. 

“[The EU’s] policy has the potential to significantly reduce e-waste and help consumers who are tired of having to rummage through junk drawers full of tangled chargers to find a compatible one, or buy a new one. The EU has wisely acted in the public interest by taking on powerful technology companies over this consumer and environmental issue. The United States should do the same.”

Scammers have always enjoyed success by pretending to be someone else – whether it be big companies like Amazon, the electric company, or even agencies like the IRS.

Authorities say an imposter scam in which criminals pretend to be from the local police department is making a comeback across the U.S., but it comes with a dangerous new twist. The scammer provides “proof” that they are legitimate by sending the victim a fake credential.

According to the Better Business Bureau (BBB), the current version of the scam seeks to scare victims into making a payment and revealing sensitive personal information. 

Local police are warning citizens

In Eugene, Ore., the real Eugene Police Department (EPD) is warning citizens to report incidents in which someone claims to be a police officer and demands a payment.

“They are using the names of retired and current EPD officers and command staff, calling from a spoofed number that looks like it’s coming from the police department including starting with ‘541.682’ and getting victims to pay through Apple Pay and Zelle," the EPD said in a statement. "Victims could also be asked to pay through other means, such as cryptocurrency or gift cards."

The East Lansing, Mich., Police Department issued a similar warning after getting reports that residents received calls informing them there was a warrant for their arrest and they could avoid arrest by making a payment. Michigan Attorney General Dana Nessel has warned on several occasions about scam attempts that use this approach.

While this imposter scam can vary by location, it does have some overriding consistencies. The scammer uses fear and intimidation to manipulate victims into acting without much thought. The fake credential is designed to convince the victim that the caller is a real law enforcement officer.

That’s not how the police operate

The scam starts with a telephone call, email, text message, or even a message on social media that delivers a threat. The imposter says there is a problem the victim must resolve immediately. They often threaten fines, arrests, or other penalties in an attempt to frighten victims into immediate action.

To avoid this scam, remember that law enforcement officials won’t send these types of messages to people who are in trouble with the law. They show up at their home.

The demand for a payment to resolve the issue is another dead giveaway that you’re talking to a scammer. People who are legitimately in trouble with the law are presumed innocent until proven guilty, so no fines are ever levied before there has been due process.

The housing market remains a bundle of contradictions as prices rise and sales decline. For the first time ever, the median home price hit $400,000 in May, as Zillow reports home affordability fell to a 15-year low.

The National Association of Realtors (NAR) reports that existing-home sales declined in May for the fourth straight month, falling 3.4% from April. Over the last 12 months, sales have declined by 8.6%.

At the same time, buyers continue to pay more for homes. In May, the NAR found that the median home price for all types of dwellings, including condos, was a record $407,600, 14.8% higher than in May 2021. Prices increased in all regions of the country.

‘Purchase power has dwindled’

Not surprisingly, Zillow found that more Americans are being priced out of the housing market. A bigger factor than the listing price is the cost of borrowing money.

"Mortgage rates took an unprecedented leap skyward over the past two weeks and quickly multiplied housing costs as they rose," said Zillow economist Nicole Bachaud. "We are already seeing signs of waning demand, and expect these recent rate hikes to quicken the market's needed rebalancing. While shoppers will likely experience less competition for homes than the frenzied recent months, their purchasing power has dwindled." 

That’s because incomes are not keeping up with rising monthly payments, which are influenced by a combination of elevated home prices and higher mortgage rates. Inflation is cutting into incomes even more.

According to Zillow, monthly house payments are taking about 28% of homeowners' monthly income, which is dangerously close to the recommended 30% threshold.

Six months ago, a home buyer with good credit could get a mortgage rate of about 3%. But mortgage rates have shot up in early June, averaging 5.78% as of Thursday, according to Zillow. A new purchase of a typical U.S. home at that rate would mean monthly mortgage payments of $2,127. That's more than 50% higher than 12 months ago.

Not enough homes for sale

The lack of available homes for sale is a major reason that home prices continue to rise, even as sales decline. The NAR reports that total housing inventory at the end of May experienced a sharp increase from April but was down 4.1% from May 2021.

Lawrence Yun, the NAR’s chief economist, says sales appear lower in comparison to the last two years but are actually returning to pre-pandemic levels.

"Also, the market movements of single-family and condominium sales are nearly equal, possibly implying that the preference towards suburban living over city life that had been present over the past two years is fading with a return to pre-pandemic conditions," he said.

Former Tesla employees have filed a lawsuit against the automaker over claims that the company's decision to execute a "mass layoff" disregarded a federal law that requires companies to provide sufficient, advance written notice to affected employees.

John Lynch and Daxton Hartsfield are the lead plaintiffs in the suit, but they both filed individually and “on behalf of all others similarly situated.” They said they were terminated from Tesla's Gigafactory plant in Sparks, Nevada, earlier this month. According to the lawsuit, Tesla terminated more than 500 employees alone at that Gigafactory plant in Sparks.

Where Tesla crossed the line

Lynch and Hartsfield claim that if Tesla had abided by the Worker Adjustment and Retraining Notification Act (WARN), they should have had at least 60 days advance notice. 

Instead, the suits claim that Tesla "simply notified the employees that their terminations would be effective immediately." They also claim that the company "failed to provide a statement of the basis for reducing the notification period to zero days advance notice.”

WARN isn’t likely something someone thinks about when they lose their job, but it's designed to give workers and their families sufficient time to adjust to the possible loss of employment, to seek and obtain other jobs, and, if necessary, to enter skill training or retraining that will allow these workers to compete successfully in the job market.

The law requires employers who have 100 or more employees (not counting those who have worked less than six months in the last 12 months and those who work less than 20 hours a week) to provide at least two months of advance written notice of a plant closing and mass layoff that impacts 50 or more employees at a single site. 

There’s a slight silver lining in WARN for employers, however, and it's something that Tesla might try to use to sway the court. The law allows for exceptions to be made when layoffs occur due to unforeseeable business circumstances or the company “faltering.” 

ConsumerAffairs contacted Tesla, but the company did not immediately respond to our request for comment.