Twitter’s Sacked Employees Ordered to Drop Group-Lawsuit Over Compensation

Twitter prevailed in a decision requiring a group of dismissed employees suing the business over their severance compensation to pursue their claims individually rather than as part of a class action. On Friday, U.S. District Judge James Donato ordered that five former Twitter workers must pursue their claims in private arbitration rather than in a planned class action alleging that the business failed to provide sufficient notice before firing them after its purchase by Elon Musk.

Donato approved Twitter’s motion, citing contracts the five former workers signed with the business, to require them to pursue their claims on an individual basis. However, the San Francisco court noticed three more former Twitter workers who claimed they had opted out of the company’s arbitration agreement had joined the complaint after it was initially filed, so he delayed the decision on whether to dismiss the whole class action lawsuit for another day “as warranted by developments in the case.”

In response to a planned class action charging the firm of failing to provide sufficient notice before firing them, Donato had previously decided that Twitter must tell the hundreds of employees who were let off after its purchase by Musk. The court ruled that Twitter must provide employees with “a succinct and plainly worded notice” before asking them to sign severance agreements relinquishing their right to sue the corporation.

The procedure might be expensive for Twitter, which a lawyer said had underpaid employees in severance pay and claimed to have filed 500 of these claims on their behalf:

Insisting that workers file claims one by one has backfired for many companies our firm has taken on

These companies think they can make employees just go away and not assert their rights by using arbitration clauses, but we have made them sorry about what they wished for.”

-Lawyer Shannon Liss-Riordan

Early in November, Musk reduced costs at Twitter by firing around 3,700 workers; a few hundred more followed suit. Furthermore, Twitter was accused of a number of legal violations connected to Elon Musk’s acquisition of the business in December of last year. Additionally, Twitter is dealing with at least three complaints made to a U.S. labor board alleging that employees were dismissed for speaking out against the business, seeking to organize a strike and other actions covered by federal labor law.

Source: Bloomberg


Muhammad Zuhair

Passionate about technology and gaming content, Zuhair focuses on analysing information and then presenting it to the audience.
Back to top button