Twitter owes $500 million to ex-employees over severance funds

Twitter staff who have been laid off by Elon Musk are actually demanding $500 million in severance funds. They’ve filed a lawsuit and accused the corporate of deliberately refusing to pay the required quantity.

Elon Musk laid off almost 80% of Twitter workers good after taking on the corporate. The billionaire later claimed that the corporate works effectively even with 80% much less workers. The staff that have been laid off have sued the corporate a number of instances and lately filed a lawsuit to make Twitter cowl authorized arbitration prices. However the newest authorized dispute between Twitter and its former workers is about severance funds.

Twitter ought to pay $500 million in severance funds to its former staff

Courtney McMillian, who labored as Twitter’s head of whole rewards and was laid off in January, has filed her class motion in San Francisco federal courtroom. She claims the corporate arrange a program in 2019 to provide laid-off workers two months of base pay plus one week of pay for every full yr.

Nevertheless, McMillian says most staff got just one month of severance pay. Moreover, many are nonetheless ready to obtain their promised checks. Whereas Twitter claims it had paid ex-employees in full, the lawsuit reveals that senior staff have been owed six months of base pay. The social media firm is now accused of violating federal regulation by refusing to pay severance.

Twitter at the moment has no media relations division. Reuters says the corporate responded to a request for remark with a poop emoji.

Apart from refusing to pay severance, Twitter can also be accused of failing to pay hundreds of thousands of {dollars} in bonuses to its present workers. Musk-owned platform tried to ignore the lawsuit by claiming it lacked benefit. Different lawsuits additionally accused the corporate of concentrating on ladies and staff with disabilities.

Twitter has hit laborious with the launch of Threads by Meta, claiming Threads is a clone of Twitter and Meta really copied their platform. Thus far, Threads may handle to achieve 100 million customers. Counting on Instagram’s huge person base, Threads has the potential to overhaul Twitter by way of person rely.

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