A group of Former Twitter Employees Prepare to Engage in Legal Battle Against Elon Musk for not complying with the promised compensation. According to a report from Los Angeles Times, the tycoon would face a barrage of arbitration demands from those affected by the wave of layoffs. Musk and company have not met their financial obligationsleaving thousands of people who worked for the social network in limbo.
The former employees They ask that the compensation packages that were agreed be respected prior to the closing of the Twitter purchase. It contained two months of severance pay, funds for medical care, performance bonuses, and his share purchase for up to three months after the last day of work. After the closing of the transaction, Elon Musk promised that he would compensate those affected with three months of salary.
The problem for Musk is that one of the items in the Twitter purchase agreement requires the company to provide a severance package “no less favourable” than what the previous owners promised. Although most employees cannot bring a class action lawsuit, they may alternatively file claims for arbitration. Some legal experts claim that Twitter will be bombarded with thousands of claimswhich will result in additional expenses
In accordance with California law, Twitter must bear the cost of the arbitration process. According to labor lawyer Rafael Nendel-Flores, each case would cost between $50,000 and $100,000, which would represent a very high financial burden for the company. “The strategy of filing multiple lawsuits will increase the pressure on Twitter. The arbitration fees alone would be huge,” said the lawyer.
Twitter must pay compensation to its former employees
Some of those affected by the layoffs mentioned that the company has not given enough information about the compensation and they charged against their new owner. “The way Elon Musk executed the layoffs was really inhumane,” said Amir Shevat, former head of product for the development platform. “I’m here today because I want Twitter to be held accountable,” said Helen-Sage Lee, a former member of the account integrity team.
Lisa Bloom, an attorney who leads a law firm in California, revealed that she represents multiple former Twitter employees who were hack victims of Elon Musk. The lawyer mentioned that they are reviewing case by case and that they will charge the company on multiple fronts.
Lawyer Akiva Cohen warned Elon Musk that he will start a series of legal processes against him. Cohen has set a December 7 deadline for Musk to confirm that he will comply with the severance packages. The lawyer said that even if the company were to win in the arbitration process, the cost of legal fees for all employees would be higher than the compensation itself.
Currently, Twitter faces a lawsuit for violation of labor laws. Some former employees accused the company of not complying with the WARN Act (Worker Adjustment and Retraining Notice), which establishes that there must be a 60-day notice before carrying out a mass layoff. Those affected indicated that not only were they not warned, but their dismissal was not formally notified and they did not receive compensation.