A California federal judge has refused to dismiss a lawsuit accusing Elon Musk’s Twitter, now rebranded as X, of age discrimination during last year’s mass layoffs post the tech billionaire’s acquisition of the company.
What Happened: John Zeman, the plaintiff in this proposed class action, claimed that X disproportionately laid off older workers after Musk acquired the company.
The plaintiff alleged that 60% of employees aged 50 or older and nearly three-quarters of those over 60 were let go, compared to 54% of younger employees.
Judge Susan Illston ruled that federal law banning workplace age bias allows for “disparate impact” claims in a class-action lawsuit, reported Reuters.
She dismissed the claim that X intentionally targeted older workers but granted Zeman a month to amend the lawsuit to strengthen this assertion.
See Also: Elon Musk: The Unofficial Power Behind US Government Decisions?
Shannon Liss-Riordan, Zeman’s attorney, sees this decision as validating their arguments, signaling that the discrimination claims will proceed.
X, which underwent a significant workforce reduction following Musk’s acquisition, currently faces multiple lawsuits related to the layoffs.
These suits include allegations of failing to provide adequate notice and accusations that Musk’s policies adversely impacted workers with disabilities, the report noted.
Why It’s Important: The ruling by Judge Illston marks a crucial development in the ongoing debate over age discrimination within the tech industry and raises questions about the treatment of older employees during corporate transformation.
Last year, Green Thumb Industries was also accused of gender and age discrimination by a former employee.
In 2011, it was reported that Dillard’s, Inc. DDS would pay $50,000 to settle an age discrimination suit.
In the U.S., approximately 13,000 complaints were lodged in 2021 under the federal Age Discrimination in Employment Act (ADEA) 1967. However, it’s important to note that these figures do not encompass cases filed under state-specific laws, according to Bloomberg.
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