Written by Cláudio Afonso | LinkedIn | X
Electric vehicle maker Canoo has been accused of failing to reimburse workers for thousands of dollars in expenses and of not paying salaried employees their full, final paychecks for the last two weeks of December, missing the expected payment date of December 31.
A spokesperson for the company told local media outlet KFOR late Monday that affected employees would receive the amounts owed within three business days.
Canoo, which typically pays employees on the 15th and the last day of each month, issued full paychecks on December 15 but only partial payments at the end of the month, according to a recently furloughed employee.
“They just kind of prorated. So instead of, say, a $4,000 check, people got a $500 check or a $600 check. Under the Fair Labor Standards Act, that’s illegal,” the employee said.
In a statement, Canoo said it had taken immediate action to address the issue after being notified of the discrepancies.
“Upon being notified of a miscalculation in the final paycheck of its furloughed employees, the company took immediate action to resolve the issue and ensure full compensation for those affected,” Canoo said in a statement. “Payments for the missed days will be issued within three business days.”
Based on this timeline, employees should receive the missing payments by Wednesday, January 8.
Canoo had announced three rounds of furloughs in the last quarter of 2024, including a 12-week unpaid furlough period impacting the majority of its workforce. In its final furlough announcement, the company said it was temporarily shutting down its EV and battery factories while working to secure capital to sustain operations.
Canoo shares fell 6% on Monday to $1.27, three cents above its record low of $1.24.
As recently reported by EV, the company is auctioning engineering and manufacturing equipment from its EV and battery facilities in Oklahoma.
Following the recent three rounds of furloughs affecting most of its staff, the auction organizer BidItup has announced that the sale will take place via webcast on January 24, 2025, less than a month away.
Written by Cláudio Afonso | LinkedIn | X
