Tag: twitter layoffs

US Judge Refuses to Dismiss Lawsuit Accusing Elon Musk’s X of Age Bias in 2022 Layoffs

A California federal judge has refused to dismiss a lawsuit accusing X, the social media service formerly called Twitter, of disproportionately laying off older workers when Elon Musk acquired the company last year.

US District Judge Susan Illston on Tuesday said the plaintiff in the proposed class action, John Zeman, had provided enough evidence that the mass layoffs had a greater impact on older employees to continue pursuing the case.

Zeman, for example, claims that X laid off 60 percent of workers who were 50 or older and nearly three-quarters of those who were over 60, compared with 54 percent of employees younger than 50.

Illston ruled that the federal law banning workplace age bias allows plaintiffs to bring so-called “disparate impact” claims in a class action, an issue that has divided courts.

The judge dismissed a claim that X intentionally targeted older workers for layoffs, but gave Zeman a month to file an amended lawsuit fleshing out that claim.

Shannon Liss-Riordan, Zeman’s lawyer, said “this decision validates the arguments we are making that the discrimination claims can go forward.”

X did not respond to a request for comment.

The lawsuit is one of about a dozen X is facing stemming from Musk’s decision to lay off about half of Twitter’s workforce beginning last November.

Those cases include various claims, including that X laid off employees and contractors without the required advance notice and that Musk forced out workers with disabilities by refusing to allow remote work and calling on employees to be more “hardcore.”

At least two lawsuits claim the company owes ex-employees at least $500 million (roughly Rs. 4,100 crore) in severance pay. Twitter has denied wrongdoing in those cases.

Liss-Riordan also represents about 2,000 former Twitter employees who have filed similar legal claims against the company in arbitration.

© Thomson Reuters 2023

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(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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Twitter Layoffs: Former Workers Cannot Pursue Claims via Class-Action Lawsuit, US Court Says

Twitter has secured a ruling allowing the social media company to force several laid-off workers suing over their termination to pursue their claims via individual arbitration than a class-action lawsuit.

US District Judge James Donato on Friday ruled that five former Twitter employees pursuing a proposed class action accusing the company of failing to give adequate notice before laying them off after its acquisition by Elon Musk must pursue their claims in private arbitration.

Donato granted Twitter’s request to force the five ex-employees to pursue their claims individually, citing agreements they signed with the company.

Twitter did not immediately respond to a request for comment.

The San Francisco judge left for another day “as warranted by developments in the case” whether the entire class action lawsuit must be dismissed, though, as he noted three other former Twitter employees who alleged they had opted out of the company’s arbitration agreement have joined the lawsuit after it was first filed.

The lawyer who represents the plaintiffs, Shannon Liss-Riordan, said on Monday that she had already filed 300 demands for arbitration on behalf of former Twitter employees and would likely file hundreds more.

Those workers all claim they have not received the full severance package promised by Twitter before Musk took over. Some have also alleged sex or disability discrimination.

Last year, Donato had ruled that Twitter must notify the thousands of workers who were laid off after its acquisition by Musk following a proposed class action accusing the company of failing to give adequate notice before terminating them.

The judge said that before asking workers to sign severance agreements waiving their ability to sue the company, Twitter must give them “a succinct and plainly worded notice”.

Twitter laid off roughly 3,700 employees in early November in a cost-cutting measure by Musk, and hundreds more subsequently resigned.

In December last year, Twitter was also accused by dozens of former employees of various legal violations stemming from Musk’s takeover of the company, including targeting women for layoffs and failing to pay promised severance.

Twitter is also facing at least three complaints filed with a U.S. labour board claiming workers were fired for criticising the company, attempting to organise a strike, and other conduct protected by federal labour law.

© Thomson Reuters 2023

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Elon Musk’s Twitter Faces Lawsuit for Mass Layoffs: Here’s All You Need to Know About WARN Act

Twitter has begun laying off employees under its new owner, Elon Musk. The San Francisco-based social media giant is expected to terminate up to 3,700 people — half of its workforce — on Friday, according to internal plans reviewed by Reuters this week. Twitter is already facing a proposed class action claiming the layoffs are imminent and will violate US and California laws if employees are not given advance notice or severance pay.

What does US law require?

The federal Worker Adjustment and Retraining Notification (WARN) Act requires businesses with 100 or more employees to provide 60 days’ notice before engaging in mass layoffs. The law defines mass layoffs as those affecting at least 500 employees during a 30-day period, or at least 50 employees if layoffs impact at least one-third of a company’s workforce. Employers can provide workers with 60 days of severance pay in lieu of giving notice.

What are the penalties for violating the WARN Act?

An employer found to have violated the WARN Act can be ordered to give laid-off workers 60 days of back pay. The law also imposes penalties of $500 (nearly Rs. 41,000) per violation per day. Comparable laws in California and other states impose similar penalties.

What has Twitter been accused of?

The lawsuit filed in San Francisco federal court late on Thursday claims Twitter locked employees out of their accounts on Thursday, signaling that they will soon lose their jobs. One of the five named plaintiffs, who is based in California, says he was terminated on November 1 without notice or severance pay. It was not clear if Twitter is paying severance to workers who lose their jobs. Twitter did not immediately respond to a request for comment.

The lawsuit claims the layoffs violate the WARN Act and a similar California law. The plaintiffs say they are concerned that Twitter will ask workers targeted for layoffs to sign releases waiving their ability to sue in exchange for modest severance pay.

Have other Elon Musk-run companies been sued under the WARN Act?

Tesla was sued in Texas federal court in June for allegedly violating the WARN Act through an abrupt nationwide purge of its workforce, including 500 layoffs at a factory in Sparks, Nevada. The law firm behind that case, Boston-based Lichten & Liss-Riordan, also represents the Twitter workers who sued on Thursday. The firm did not immediately respond to a request for comment. Tesla has said it was merely “right-sizing” by firing poorly performing workers and not engaging in layoffs that required advance notice.

Last month, a federal judge said Tesla workers must pursue their claims in private arbitration rather than court. The same issue could arise in the lawsuit against Twitter, as more than half of private-sector US workers have signed agreements to arbitrate employment-related legal disputes.

Has there been an increase in WARN Act litigation?

Employers faced a spike in lawsuits brought under the WARN Act and state laws during the COVID-19 pandemic, as many businesses abruptly shuttered or terminated many of their employees. Enterprise Rent-A-Car, Hertz Corp, restaurant chain Hooters and Florida hotel operator Rosen Hotels and Resorts all settled WARN Act lawsuits over pandemic-related layoffs. Rosen settled claims by 3,600 workers for $2.3 million (nearly Rs. 18 crore) and Enterprise agreed to pay $175,000 (nearly Rs. 1.5 crore) to nearly 1,000 workers. Hertz and Hooters paid undisclosed sums.

© Thomson Reuters 2022

 

 

 

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Elon Musk Takeover: Twitter India Said to Start Laying Off Staff as Part of Global Job Cut

Twitter has started laying off employees in India as part of a global job cut ordered by the social media platform’s new owner Elon Musk to attain economies of scale and make the $44 billion (nearly Rs. 3,62,100 crore) acquisition viable.

The world’s richest businessman Musk began his innings at Twitter last week by firing the CEO Parag Agrawal as well as the CFO and some other top executives.

This was followed by an exodus of top management. Musk has now started a massive exercise to downsize the company’s global workforce.

“Lay-off has started. Some of my colleagues have received email notification regarding this,” a Twitter India employee told PTI on condition of anonymity.

Another source said the lay-offs have affected a “significant chunk” of the India team.

The full details of the job cuts were not immediately available.

Twitter India did not respond to email queries.

The US-based social media platform, in an internal email to employees earlier, had said, “In an effort to place Twitter on a healthy path, we will go through the difficult process of reducing our global workforce on Friday.” It said that “everyone will receive an individual email”.

The company will temporarily close all offices for safety of employees as well as Twitter systems and customer data.

“If you are in an office or on your way to an office, please return home,” Twitter had said.

While Twitter had several run-ins with the government over freedom of speech, the company in the email barred employees from discussing confidential company information on social media, with the press or elsewhere.

Earlier in the day, it was reported that Twitter employees were notified in the email about the beginning of layoffs. “We recognise that this will impact a number of individuals who have made valuable contributions to Twitter, but this action is unfortunately necessary to ensure the company’s success moving forward,” an internal Twitter email said, according to the report. 

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