More than two years after departing, some former Twitter employees may finally receive their severance pay. Elon Musk’s X is tentatively settling a class action lawsuit filed by workers laid off shortly after his acquisition of Twitter.
This development emerged from a court filing in which both parties requested a delay for an upcoming hearing to negotiate a settlement.
Following his purchase of Twitter in 2022, Musk laid off over 6,000 employees, reducing the workforce by approximately 80%. While Musk initially offered three months of severance, the lawsuit claims many former employees did not receive full payments, and some received nothing at all.
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Additionally, the lawsuit contends that Musk’s severance offer was less than what employees expected based on a Twitter severance plan established in 2019, which guaranteed senior employees up to six months of base pay, plus one week of pay for each year of service.
However, a U.S. District Judge in San Francisco ruled in July that Musk was not obligated to honor the severance agreements made with Twitter. The plaintiffs appealed this ruling, and oral arguments were scheduled for next month before both parties requested to postpone the hearing.
SOURCE: TECH CRUNCH
