Former Twitter workers’ legal battle for unpaid severance prompts Elon Musk’s company to return to the table
Legal Victory Spurs Negotiations
Lawyers representing many former Twitter employees who have filed lawsuits for unpaid severance have achieved a significant breakthrough. Their efforts have brought Elon Musk and his company, Twitter (now known as X), back to the negotiation table.
Leaked Memo Reveals Twitter’s Desire for Mediation
A confidential memo from the legal team advocating for former Twitter employees disclosed that Twitter (X) has expressed a keen interest in pursuing mediation to address the plaintiffs’ numerous claims.
Musk’s Takeover Triggers Mass Layoffs
Elon Musk’s acquisition of Twitter triggered a series of mass layoffs, culminating in the termination of most of the workforce. This left X with a workforce of around 1,500, contrasting the previous 8,000 employees.
Lawsuits Galore: Violations, Discrimination, and Unpaid Severance
As the layoffs unfolded, a wave of lawsuits ensued, with thousands of former employees suing their former employer. These lawsuits encompassed various issues, including alleged violations of California’s WARN Act, claims of layoff discrimination, and assertions of unpaid contractual severance payments amounting to $500 million.
Ignoring Arbitration Claims Adds to Twitter’s Woes
Twitter faced additional scrutiny for allegedly disregarding arbitration claims filed by employees seeking their severance and resolution of other grievances. By the end of the previous month, Twitter (X) had confirmed more than 2,000 arbitration claims against them, resulting in substantial filing fees.
A Ten-Month Battle Yields Success
Despite the escalating costs and challenges, attorney Shannon Liss-Riordan, representing the plaintiffs, celebrated a significant victory. After ten months of relentless legal pressure, Twitter (X) agreed to return to the negotiation table.
Law Firm’s Extensive Legal Actions
Liss-Riordan’s Boston-based law firm has spearheaded nearly 2,000 arbitration cases against X. In addition, they have launched a dozen class-action lawsuits aimed at compelling Musk’s social media platform to participate in negotiations.
Demand for Additional Severance Pay and Legal Redress
The law firm firmly asserts that all employees employed at Twitter before Elon Musk’s acquisition and who lost their jobs are entitled to additional severance pay. They also suggest that many other legal claims are yet to be addressed.
Arbitration Set for December
The arbitration proceedings are scheduled to commence in December. However, uncertainties persist regarding Musk and X’s financial capability to cover filing fees and potential settlements, given the reported continued losses since Musk’s takeover. Attempts to elicit a response from X regarding their decision to re-engage in negotiations have gone unanswered.
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