In May 2017, SolarCity offered “severance agreements” to thousands of sales employees who were terminated as part of a mass layoff of SolarCity’s “direct sales” division. This mass layoff affected Retail Energy Consultants (RECs), Solar Energy Consultant (SECs), and other sales positions that worked at mall kiosks and in the field.

The Severance Agreement May be Invalid

Soderstrom Law recently filed a motion challenging the validity and fairness of these severance agreements. Soderstrom Law is fighting to invalidate the agreements but still allow terminated employees to keep the severance payments they received.

The severance agreements may be unlawful or invalid for several reasons.

First, SolarCity did not tell employees about pending lawsuits concerning their positions. This means employees were asked to sign the agreements based on incomplete information.

Second, the agreements settled claims without full disclosure and without proper court approval.

Third, the agreement’s terms are unfair and unenforceable.

More Witnesses Are Needed

Soderstrom Law is investigating SolarCity’s and Tesla’s recent mass layoffs and the terms of SolarCity’s and Tesla’s severance agreements.

If you or someone you know were offered a severance agreement by SolarCity or Tesla or have any questions or issues concerning your employment, please call Soderstrom Law at 949.667.4700 or email [email protected] to share your story and learn about your options.

Calling or emailing Soderstrom Law does not obligate you to participate in a lawsuit, hire Soderstrom Law as your counsel, or pay any costs or fees.


Past results do not guarantee future results. There is no guarantee that you will be entitled to any recovery. Calling or emailing Soderstrom Law does not automatically create an attorney-client relationship.