Additional Coverage:
- An ex-Twitter employee won a legal battle over unpaid severance. Experts say it could spark more claims. (newsbreak.com)
Former Twitter Employee Wins Severance Pay Case
After being laid off when Elon Musk took over Twitter in 2022, a former employee has won a legal battle through arbitration over unpaid severance pay. Legal experts believe this could lead to more similar cases against the social media company, now known as X.
Precedence for Future Cases
While the arbitration ruling is not a binding court decision, it could influence how X handles similar cases. It may also encourage other former employees to pursue their own claims for mishandled severance agreements.
Pressure on Musk to Settle
Legal experts suggest that the ruling could pressure Musk to settle with former employees rather than facing more legal battles and reputational damage. X is also facing a separate lawsuit filed by 100 former Twitter workers over severance terms.
Lawsuit Against X Dismissed
In July 2022, a federal judge dismissed a lawsuit claiming X owed $500 million in severance pay to 6,000 laid-off workers. However, individual cases, like the one that resulted in the arbitration victory, may still be pursued.
Layoffs and Musk’s Email
Musk’s takeover of Twitter resulted in widespread layoffs. He sent an email to employees giving them the option to work "extremely hardcore" or resign with three months of severance pay.
Case in Ireland
Gary Rooney, a former Twitter employee who didn’t respond to Musk’s email, won an unfair dismissal case in Ireland and was awarded $600,000. X has not responded to requests for comment on the ongoing legal challenges.