(Reuters) – Twitter Inc on Wednesday used to be hit with a lawsuit accusing it of refusing to pay a minimum of $500 million in promised severance to 1000’s of workers who have been laid off after Elon Musk got the corporate.
Courtney McMillian, who oversaw Twitter’s worker advantages methods as its “head of overall rewards” earlier than she used to be laid off in January, filed the proposed magnificence motion in San Francisco federal courtroom.
McMillian claims that underneath a severance plan created through Twitter in 2019, maximum employees have been promised two months in their base pay plus one week of pay for every complete 12 months of carrier in the event that they have been laid off. Senior workers equivalent to McMillian have been owed six months of base pay, in line with the lawsuit.
However Twitter simplest gave laid-off employees at maximum one month of severance pay, and plenty of of them didn’t obtain anything else, McMillian claims.
Twitter laid off greater than part of its group of workers as a cost-cutting measure after Musk got the corporate in October.
Twitter not has a media members of the family division. The corporate spoke back to a request for remark with a poop emoji.
The lawsuit accuses Twitter and Musk of violating a federal legislation regulating worker get advantages plans. Twitter has already been sued for allegedly failing to pay severance, however the ones circumstances contain breach of contract claims and now not the advantages legislation. The corporate has stated it has paid ex-employees in complete.
A pending lawsuit filed ultimate month accuses Twitter of additionally failing to pay thousands and thousands of greenbacks in bonuses it owes to final workers. Twitter has stated the claims lack advantage.
The corporate may be going through a chain of different proceedings stemming from the layoffs that started ultimate 12 months, together with claims that it centered girls and employees with disabilities. Twitter has denied wrongdoing within the circumstances wherein it has filed responses.
Reporting through Daniel Wiessner in Albany, New York, Modifying through Alexia Garamfalvi and Invoice Berkrot