A class action lawsuit has been filed against Twitter over Elon Musk’s decision to lay off 3,700 employees. According to the complaint filed in a San Francisco federal court, Twitter employees were not given notice and were informed of the layoff via an email yesterday. The employees claim Twitter violated federal and California laws.
Twitter sued for mass layoffs without notice
Scoop: Twitter was just sued in a proposed class action for conducting a mass layoff without the required 60 day notice https://t.co/lMoxDMo7W1
– Josh Eidelson (@josheidelson) November 4, 2022
Elon Musk’s plan to fire half of Twitter’s employees has been the subject of a class action lawsuit, Bloomberg reported on November 4. The lawsuit accuses Twitter of violating the Worker Adjustment and Retraining Notification Act (WARN). According to this law, large companies cannot make mass layoffs without giving at least 60 days’ notice.
Under California’s Worker Adjustment Retraining Notice Act (WARN), employers are legally obligated to notify affected employees AND state and local representatives 60 days before a mass layoff. https://t.co/DEZujqrghb
– California Labor Federation (@CaliforniaLabor) November 4, 2022
According to the California Labor Federationthe WARN Act applies to all companies with 75 or more employees. It requires companies to give 60 days’ notice to employees and state officials of mass layoffs. Employers who violate this law are required to pay penalties, employee compensation, lost medical and other benefits, and other expenses.
“Twitter is now engaged in conducting mass layoffs without providing the notice required by the federal WARN Act.”
The employee lawsuit is represented by attorney Shannon Liss-Riordan. She filed a similar lawsuit against Tesla when Elon Musk laid off about 10% of its workforce.
In addition, the lawsuit asks the court to issue an order requiring Twitter to comply with the law on notifying workers of adjustments and outplacements. It also asks the court to prohibit the company from requiring or having employees sign documents exempting them from participating in litigation.
Those who remain at Twitter will be notified today in their work email. In contrast, those on the termination list will receive an email to their personal email address.
Some employees are eager to leave Twitter after its takeover by Elon Musk. They feel that the company culture is now beyond toxic and will leave the company with their severance pay.
Elon Musk has already fired some executives, including CEO Parag Agrawal, and there are reports of layoffs coming in the next few days.
A U.S. Treasury investigation
The U.S. Treasury Department is also looking into whether it has jurisdiction to investigate Elon Musk’s $44 billion acquisition of Twitter. Senator Chris Murphy sent a letter to the Committee on Foreign Investment in the United States (CFIUS) to investigate the involvement of non-U.S. entities, including investors from Saudi Arabia and Qatar, because of national security implications.
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