Class-Action Lawsuit Filed Against Twitter for Layoffs by Musk

cartwrightlaw - November 9, 2022 -

Elon Musk’s takeover of Twitter concluded on October 27, 2022, and the billionaire wasted no time in overhauling the workforce of the social media giant. However, in starting mass layoffs on November 1, Musk and Twitter now face a class-action lawsuit from former employees for violations of California employment laws. 

Twitter employees are not the only ones who experienced unlawful termination of their employment, as many employees in California have their rights violated by employers. If you believe you might have a case against a former employer, never wait to discuss the matter with a California wrongful termination attorney. 

Mass Layoffs from Twitter

News spread quickly after Musk’s takeover that he planned to eliminate about 50 percent of Twitter positions – about 3,700 employees – to immediately reduce company costs. The first layoffs occurred immediately following the takeover, as Musk fired the CEO, CFO, general counsel, and head of legal policy, trust, and safety. Another layoff happened on November 1, with three additional employees being locked out of their Twitter work accounts on November 3, signaling their termination.

According to sources, the mass layoffs were impersonal and chaotic. Employees received emails by the morning of November 4 regarding their job status. If they received a personal email, it meant they were terminated and no longer had access to their work accounts. If they received a work email, they could remain on the job. 

The Lawsuit Against Twitter

While companies have the right to lay off employees, they must do so in accordance with federal and California employment laws. For example, the federal Worker Adjustment and Retraining Notification (WARN) Act and the coinciding California WARN Act both require an employer to give 60 days’ notice before conducting mass layoffs. 

These laws help employees and their families plan ahead and give them the opportunity to find new employment or make other arrangements to reduce the financial implications of layoffs. Terminating thousands of employees without warning can result in many families who cannot pay bills and who need new positions. 

A number of employees who were laid off from Twitter joined together to file a lawsuit in the U.S. District Court in the Northern District of California. The complaint alleges that Twitter was in violation of worker protection laws by failing to provide advance notice of the thousands of layoffs that Musk knew he was going to conduct. Further, the California Employment Development Department (EDD) did not receive proper notice from Twitter of the planned layoffs.

The complaint requests that the court finds Twitter in violation of federal and state employment laws and seeks to certify the case as a class action. The plaintiffs also want the court to prohibit the company from forcing exiting employees to sign anything that releases their rights to take legal action until they are informed about the pending lawsuit. 

Plaintiffs are seeking different types of legal relief, including compensation for lost wages, interest, attorney’s fees, and declaratory relief. The former employees also want Musk to be held to the terms of the takeover, which state that Twitter would maintain current employee compensation and benefits. Under this agreement, the laid-off employees state they deserve at least 60 days of their usual salary, benefits, and the cash value of the stock they should receive following the end of their employment. 

Even as the richest man in the world, Elon Musk is not above the law as the new owner of Twitter. The company must still comply with all relevant employment and labor laws, and it can face legal action from employees whose rights are violated. Further, Twitter should not force such employees to sign away their rights to take legal action when they are unaware that they have cause to do so. 

Twitter has not issued a response to media requests for comment. Our firm will be watching and keeping you informed as this lawsuit progresses. 

This is Not Musk’s First Violation of Layoff Rules

The plaintiffs in the Twitter lawsuit also included information to the court about Musk’s previous violations regarding layoffs as the CEO of Tesla. Tesla conducted layoffs of hundreds of employees without proper notice in June 2022. Musk had informed Tesla executives of a hiring freeze and upcoming job cuts, but no one notified the employees who were going to be laid off as required under WARN Act provisions. 

Also, similarly to the Twitter layoffs, Tesla workers were ordered to sign documents that would prevent them from taking legal action and offering less severance pay than provided under federal law. The judge in the subsequent lawsuit ordered Tesla to inform employees of the proposed class action case before asking them to sign a waiver. The court also stated the termination agreements employees signed were likely misleading. 

When questioned by the media, Musk called the Tesla lawsuit “trivial,” demonstrating that he does not take compliance with the law as seriously as the head of a company should. His repeat violations immediately after the Twitter takeover indicate that Musk is not concerned about compliance or lawsuits by former employees. However, these employees deserve proper compensation and legal relief for the violation of their rights. 

Speak with a California Wrongful Termination Lawyer Immediately

Even the most prominent companies in the world can violate the rights of employees in many ways. Anyone who believes their rights were violated should discuss the matter with an experienced employment lawyer. If you were laid off from Twitter – or anywhere else – without the proper 60 days’ notice for mass layoffs, you can take legal action. 

The Cartwright Law Firm, Inc. represents employees in California in a variety of employment law matters. We can bring an action for wrongful termination, harassment, whistleblower retaliation, and more. Our team is dedicated to upholding California employment laws and the rights of workers in our state. 

If you would like to discuss a possible case, please contact our firm directly. Case evaluations are always free with no obligation. We are here to help. 

Elon Musk’s takeover of Twitter concluded on October 27, 2022, and the billionaire wasted no time in overhauling the workforce of the social media giant. However, in starting mass layoffs on November 1, Musk and Twitter now face a class-action lawsuit from former employees for violations of California employment laws. 

Twitter employees are not the only ones who experienced unlawful termination of their employment, as many employees in California have their rights violated by employers. If you believe you might have a case against a former employer, never wait to discuss the matter with a California wrongful termination attorney. 

Mass Layoffs from Twitter

News spread quickly after Musk’s takeover that he planned to eliminate about 50 percent of Twitter positions – about 3,700 employees – to immediately reduce company costs. The first layoffs occurred immediately following the takeover, as Musk fired the CEO, CFO, general counsel, and head of legal policy, trust, and safety. Another layoff happened on November 1, with three additional employees being locked out of their Twitter work accounts on November 3, signaling their termination.

According to sources, the mass layoffs were impersonal and chaotic. Employees received emails by the morning of November 4 regarding their job status. If they received a personal email, it meant they were terminated and no longer had access to their work accounts. If they received a work email, they could remain on the job. 

The Lawsuit Against Twitter

While companies have the right to lay off employees, they must do so in accordance with federal and California employment laws. For example, the federal Worker Adjustment and Retraining Notification (WARN) Act and the coinciding California WARN Act both require an employer to give 60 days’ notice before conducting mass layoffs. 

These laws help employees and their families plan ahead and give them the opportunity to find new employment or make other arrangements to reduce the financial implications of layoffs. Terminating thousands of employees without warning can result in many families who cannot pay bills and who need new positions. 

A number of employees who were laid off from Twitter joined together to file a lawsuit in the U.S. District Court in the Northern District of California. The complaint alleges that Twitter was in violation of worker protection laws by failing to provide advance notice of the thousands of layoffs that Musk knew he was going to conduct. Further, the California Employment Development Department (EDD) did not receive proper notice from Twitter of the planned layoffs.

The complaint requests that the court finds Twitter in violation of federal and state employment laws and seeks to certify the case as a class action. The plaintiffs also want the court to prohibit the company from forcing exiting employees to sign anything that releases their rights to take legal action until they are informed about the pending lawsuit. 

Plaintiffs are seeking different types of legal relief, including compensation for lost wages, interest, attorney’s fees, and declaratory relief. The former employees also want Musk to be held to the terms of the takeover, which state that Twitter would maintain current employee compensation and benefits. Under this agreement, the laid-off employees state they deserve at least 60 days of their usual salary, benefits, and the cash value of the stock they should receive following the end of their employment. 

Even as the richest man in the world, Elon Musk is not above the law as the new owner of Twitter. The company must still comply with all relevant employment and labor laws, and it can face legal action from employees whose rights are violated. Further, Twitter should not force such employees to sign away their rights to take legal action when they are unaware that they have cause to do so. 

Twitter has not issued a response to media requests for comment. Our firm will be watching and keeping you informed as this lawsuit progresses. 

This is Not Musk’s First Violation of Layoff Rules

The plaintiffs in the Twitter lawsuit also included information to the court about Musk’s previous violations regarding layoffs as the CEO of Tesla. Tesla conducted layoffs of hundreds of employees without proper notice in June 2022. Musk had informed Tesla executives of a hiring freeze and upcoming job cuts, but no one notified the employees who were going to be laid off as required under WARN Act provisions. 

Also, similarly to the Twitter layoffs, Tesla workers were ordered to sign documents that would prevent them from taking legal action and offering less severance pay than provided under federal law. The judge in the subsequent lawsuit ordered Tesla to inform employees of the proposed class action case before asking them to sign a waiver. The court also stated the termination agreements employees signed were likely misleading. 

When questioned by the media, Musk called the Tesla lawsuit “trivial,” demonstrating that he does not take compliance with the law as seriously as the head of a company should. His repeat violations immediately after the Twitter takeover indicate that Musk is not concerned about compliance or lawsuits by former employees. However, these employees deserve proper compensation and legal relief for the violation of their rights. 

Speak with a California Wrongful Termination Lawyer Immediately

Even the most prominent companies in the world can violate the rights of employees in many ways. Anyone who believes their rights were violated should discuss the matter with an experienced employment lawyer. If you were laid off from Twitter – or anywhere else – without the proper 60 days’ notice for mass layoffs, you can take legal action. 

The Cartwright Law Firm, Inc. represents employees in California in a variety of employment law matters. We can bring an action for wrongful termination, harassment, whistleblower retaliation, and more. Our team is dedicated to upholding California employment laws and the rights of workers in our state. 

If you would like to discuss a possible case, please contact our firm directly. Case evaluations are always free with no obligation. We are here to help. 

Our successful case results are a reflection of the values and virtues we believe in and uphold at Cartwright Law Firm. Nothing stops us from pursuing justice on behalf of those who need it.

Robert E. Cartwright Jr.
Founder and Managing Partner