Elon Musk’s Twitter Faces Class Action Lawsuit For Mass Layoffs

A class-action lawsuit was filed against Twitter due to Elon Musk’s decision to layoff 3,700 employees. According to the lawsuit filed in a San Francisco federal court, Twitter employees were not given prior notice and were notified about the layoff in an email yesterday. Employees assert Twitter violated federal and California law.

Twitter Sued for Mass Layoffs Without Notice

Elon Musk’s plan to layoff half of Twitter employees has been hit with a class action lawsuit, reported Bloomberg on November 4. The lawsuit alleges Twitter for violating the Worker Adjustment and Retraining Notification Act (WARN). As per the Worker Adjustment and Retraining Notification Act, large companies are restricted from making mass layoffs without giving at least 60 days advance notice.

As per the California Labor Federation, the WARN law applies to all companies with at least 75 employees. It requires companies to give advance notice of 60 days to employees and state representatives in case of mass layoffs. Employers violating the act are liable to pay penalties, compensation to employees, lost medical and other benefits, and other expenses.

“Twitter is now engaged in conducting mass layoffs without providing the required notice under the federal WARN Act.”

The lawsuit filed by employees is represented by attorney Shannon Liss-Riordan. She filed a similar lawsuit against Tesla when Elon Musk laid off about 10% of its workforce.

Moreover, the lawsuit requests the court to issue an order making Twitter follow the Worker Adjustment and Retraining Notification Act. It also asks the court to restrict the company from demanding or making employees sign documents to withdraw from participating in litigation.

Those who are staying at Twitter will be notified today in their work email. Whereas, those on the layoff list will get an email to their personal address.

Some employees are eager to leave Twitter after Elon Musk takes over the social media firm. They believe the work culture is beyond toxic now and will leave the firm with their severance pay.

Elon Musk earlier fired some executives, including CEO Parag Agrawal and there were reports of upcoming firing in the upcoming days.

A probe by U.S. Treasury

The U.S. Treasury Department is also looking into whether it has jurisdiction to investigate Elon Musk’s $44 billion Twitter acquisition. Senator Chris Murphy sent a letter to the Committee on Foreign Investment in the U.S. (CFIUS) to review the involvement of non-US entities including Saudi Arabia and Qatar investors over national security implications.

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