Fired Twitter workers demand Elon Musk pay $500M in severance
Twitter Faces Lawsuit Over Alleged Failure to Pay Promised Severance to Laid-Off Employees
Social media giant, Twitter, is being sued for refusing to pay at least $500 million in promised severance to thousands of employees who were laid off following the acquisition of the company by Elon Musk. The proposed class action was filed by Courtney McMillian, former head of total rewards at Twitter, in San Francisco federal court on Wednesday.
Under a severance plan implemented by Twitter in 2019, employees were promised two months of their base pay plus one week of pay for each full year of service if they were laid off. However, senior employees like McMillian were owed six months of base pay, according to the lawsuit. Despite these promises, Twitter only provided laid-off workers with at most one month of severance pay, and many employees received nothing at all, claims McMillian.
Following the acquisition by Musk in October, Twitter implemented the layoffs as a cost-cutting measure, affecting over half of its workforce. Twitter has been accused of violating federal laws regulating employee benefit plans, as stated in the lawsuit filed by McMillian. It is worth noting that prior lawsuits against Twitter regarding severance payment have solely focused on breach of contract claims and not the benefits law. Twitter, however, maintains that it has fully paid all ex-employees as required.
In addition to this recent lawsuit, Twitter is facing several other legal actions related to the layoffs initiated last year, including allegations of discrimination against women and workers with disabilities. Twitter has denied any wrongdoing in the cases for which it has responded.
Twitter’s response to media inquiries about the lawsuit was a poop emoji, as the company no longer has a media relations department.
FAQs:
Q: What is the lawsuit against Twitter about?
A: The lawsuit accuses Twitter of refusing to pay at least $500 million in promised severance to laid-off employees after Elon Musk acquired the company.
Q: Who filed the lawsuit?
A: The proposed class action was filed by Courtney McMillian, former head of total rewards at Twitter, in San Francisco federal court.
Q: What were employees promised for severance pay?
A: Under a severance plan implemented in 2019, employees were promised two months of their base pay plus one week of pay for each full year of service if they were laid off. Senior employees were owed six months of base pay.
Q: How much severance pay did the laid-off employees receive?
A: The lawsuit claims that Twitter only provided laid-off workers at most one month of severance pay, and many employees received nothing at all.
Q: Why did Twitter lay off employees?
A: The layoffs were implemented as a cost-cutting measure following Elon Musk’s acquisition of the company in October.
Q: What other legal actions is Twitter currently facing?
A: Twitter is facing several other lawsuits related to the layoffs, including allegations of discrimination against women and workers with disabilities.
Q: How has Twitter responded to the lawsuit?
A: Twitter responded to media inquiries about the lawsuit with a poop emoji, as the company no longer has a media relations department.
Former Twitter employees seek $500M in severance from Elon Musk
Twitter is facing a lawsuit alleging that it failed to fulfill its promise of providing over $500 million in severance pay to thousands of employees who were laid off following the company’s acquisition by Elon Musk. The proposed class action was filed by Courtney McMillian, who previously served as Twitter’s “head of total rewards” overseeing employee benefits programs before her own layoff in January.
According to McMillian, in 2019 Twitter established a severance plan that guaranteed most workers two months of their base pay plus one week of pay for each year of service in case of layoffs. Senior employees, including McMillian, were supposed to receive six months of base pay. However, the lawsuit claims that Twitter only provided a maximum of one month of severance pay to laid-off workers, with many not receiving any compensation at all.
Twitter resorted to laying off more than half of its workforce after the acquisition by Musk as a cost-cutting measure. The company has eliminated its media relations department and responded to a request for comment on the lawsuit with a poop emoji.
The lawsuit accuses Twitter and Musk of violating federal laws that regulate employee benefit plans. While Twitter has previously been sued for breach of contract regarding severance pay, the current lawsuit specifically addresses the benefits law. Twitter has stated that it has fully compensated former employees. Additionally, another pending lawsuit alleges that Twitter has also failed to pay millions in owed bonuses to remaining employees, a claim that the company has dismissed as lacking merit.
Twitter is currently facing several other lawsuits related to the layoffs, including ones that claim the company targeted women and employees with disabilities. Twitter has denied any wrongdoing in cases where it has responded.