Back in 2016, a survey by PayScale revealed that SpaceX and Tesla, both owned by billionaire Elon Musk, are paying the least amount of wages to its employees in tech. A class-action lawsuit against Musk’s space corporation for not giving them legally mandated breaks. A total of 4,100 took part in this lawsuit. But today both the company and plaintiffs came to a decision and settled the case out of court for $4 million.
Out of this $4 million, $1.3 million will go to the lawyers and rest of the money will be divided amongst the plaintiffs. Most of them will get $500 each and highest payout will be around $2,000.
If you take the company’s $12+ billion valuations into account that amount seems like chump change, so at least one of the plaintiffs tried to block the deal from happening.
The class action lawsuit
The beginning of this class action lawsuit was back in 2016. Firstly, several individuals separately filed for lawsuits then it got this big. See, workers in California are entitled to a rest period every four hours in addition to a lunch break. However, shifts within the company are reportedly structured so that the employees can’t take those breaks. The plaintiffs said they weren’t compensated for those extra hours either, prompting them to take the legal route.