Twitter owes ex-employees $500 million in severance, lawsuit claims | Twitter

Twitter reportedly refused to pay a minimum of $500 million promised to put off hundreds of staff who have been later fired Elon Musk The corporate acquired a lawsuit filed Wednesday over the declare.

Courtney McMillan, who oversaw Twitter’s worker advantages packages earlier than being fired in January as its “whole rewards head,” filed the proposed class motion in federal courtroom in San Francisco.

McMillian claims that underneath the severance plan created by Twitter in 2019, most staff have been promised two months of base pay and one week of pay for every year of service in the event that they have been fired. Senior staff like McMillian have been owed six months of base pay, based on the lawsuit.

However Twitter solely gave the fired staff a most of 1 month’s severance pay, and lots of of them acquired nothing, McMillan claimed.

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

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

The lawsuit accuses Twitter and Musk of violating federal regulation governing worker profit plans. Twitter has already been sued for alleged failure to pay, however these instances contain breach of contract claims and never advantages legal guidelines. The corporate stated it has totally paid the previous staff.

A pending lawsuit filed final month accuses Twitter of failing to pay tens of millions of {dollars} in bonuses to remaining staff. Twitter has stated the claims haven’t got advantage.

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