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HomeNewsTwitter Allegedly Owes Ex-Staff $500 Million In Severance

Twitter Allegedly Owes Ex-Staff $500 Million In Severance

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(Reuters) – Twitter Inc on Wednesday was hit with a lawsuit accusing it of refusing to pay not less than $500 million in promised severance to hundreds of workers who have been laid off after Elon Musk acquired the corporate.

Courtney McMillian, who oversaw Twitter’s worker advantages packages as its “head of whole rewards” earlier than she was laid off in January, filed the proposed class motion in San Francisco federal courtroom.

McMillian claims that below a severance plan created by Twitter in 2019, most staff have been promised two months of their base pay plus one week of pay for every full 12 months of service in the event that they have been laid off. Senior workers equivalent to McMillian have been owed six months of base pay, in keeping with the lawsuit.

Tesla CEO and Twitter owner Elon Musk attends the VivaTech conference in Paris.
Tesla CEO and Twitter proprietor Elon Musk attends the VivaTech convention in Paris.

However Twitter solely gave laid-off staff at most one month of severance pay, and lots of of them didn’t obtain something, McMillian claims.

Twitter laid off greater than half of its workforce as a cost-cutting measure after Musk acquired the corporate in October.

Twitter not has a media relations division. The corporate responded to a request for remark with a poop emoji.

The lawsuit accuses Twitter and Musk of violating a federal regulation regulating worker profit plans. Twitter has already been sued for allegedly failing to pay severance, however these circumstances contain breach of contract claims and never the advantages regulation. The corporate has mentioned it has paid ex-employees in full.

A pending lawsuit filed final month accuses Twitter of additionally failing to pay tens of millions of {dollars} in bonuses it owes to remaining workers. Twitter has mentioned the claims lack benefit.

The corporate can also be going through a collection of different lawsuits stemming from the layoffs that started final 12 months, together with claims that it focused girls and staff with disabilities. Twitter has denied wrongdoing within the circumstances through which it has filed responses.

Reporting by Daniel Wiessner in Albany, New York, Enhancing by Alexia Garamfalvi and Invoice Berkrot

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