Twitter must tell terminated employees that there’s an active lawsuit against the Elon Musk-led company regarding severance pay and benefits, a judge reportedly ruled.
What Happened: U.S. District Judge James Donato said, “Twitter is directed to provide notice of the pendency of this case before asking an employee to release his or her legal claims,” reported Bloomberg.
The lawsuit alleges that Twitter failed to give 60 to 90 days of notice about mass layoffs and shortchanged employees on severance pay, according to the report.
The social media platform has reportedly been asking employees who accept the severance package, which includes a month of base pay, to sign a waiver agreeing not to join lawsuits against it.
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Why It Matters: Shannon Liss-Riordan, an employment lawyer who previously sparred with Musk over layoffs at Tesla, argued in the Twitter case that former workers are entitled to at least two months’ base pay and could be entitled to more depending on the number of years they served, according to Bloomberg.
The lawyer reportedly said that under the previous agreement they’re supposed to receive three months of equity vesting, healthcare contributions, and bonuses.
It was reported earlier that Twitter is considering not paying severance to thousands of workers it laid off last month. The company is reportedly doubling-down on cost-cutting measures.
Read Next: Elon Musk Sells $3.6B Of Tesla Stock This Week As He Tries Running Tight Twitter Ship
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