A new class-action lawsuit has been filed against Twitter, alleging that the company has failed to pay over $500 million in severance to laid-off employees. The lawsuit, proposed in a San Francisco federal court by Courtney McMillian, a former human resources employee at Twitter, claims that a severance plan promised employees two months of base pay (six months for senior workers) plus additional benefits in the event of a layoff. However, when mass layoffs occurred under the leadership of Elon Musk, workers reportedly received only one month’s severance pay, as reported by Reuters. According to CNN, they also received an extra two months’ pay to comply with state and federal mandates.
The complaint further alleges that Musk was aware of the severance plan but chose not to uphold it fully, paying employees only a fraction of what they were owed. The lawsuit also accuses the company of misleading workers regarding the implementation of the 2019 plan, as reported by the BBC. The attorney representing McMillian stated, “Musk initially assured employees that Twitter would continue to honor the severance plan under his leadership. It appears that he made these assurances knowing they were necessary to prevent mass resignations that could have jeopardized the merger and the company itself.” (Twitter is also facing a separate lawsuit regarding alleged gender bias in its layoffs.)
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