Musk’s legal woes: More legal trouble for Musk, Twitter sued again for violating laws during layoffs

Musk’s legal woes: More legal trouble for Musk, Twitter sued again for violating laws during layoffs

Apr 5, 2023 - 13:30
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Musk’s legal woes: More legal trouble for Musk, Twitter sued again for violating laws during layoffs

It seems that the layoffs that Elon Musk ordered when he first took control of Twitter simply won’t go away. The tech mogul has been sued in multiple cases across various courts in the US for violating labour laws during Twitter’s layoffs.

Now, a fresh lawsuit has been filed against Musk, this time for illegally laying off contract workers without notice. 

Twitter’s multiple cases
Twitter is currently involved in a number of cases ranging from terminating people improperly, to not paying the rent of several properties that Twitter operated out of. In one particular case, Musk was sued for terminating differently-abled employees, employees on paternity and maternity leaves, as well as employees on medical leaves. 

Also read: Twitter sued for disproportionately targeting women and staff on family leave during mass layoff

In the most recent lawsuit that was filed, Twitter and Musk have been accused of illegally laying off contract workers without notice after Elon Musk bought the company last year.

The proposed class action, filed in federal court in San Francisco, claims Twitter fired numerous employees hired by hiring firm TEKsystems Inc in November without providing the necessary 60 days’ notification under US and California law.

Five other cases are ongoing in the same court, alleging that Twitter violated those laws by selecting female workers for termination and discriminating against employees with impairments. Twitter has refuted any misconduct.

In early November, Musk, who paid $44 billion to purchase Twitter, laid off approximately 3,700 workers, or half of its workforce. Musk also fired thousands of content moderators who were working on a contractual basis for the platform. Following this, hundreds of more employees also quit.

The contractors who were fired
The contractors who Musk fired, were placed through TEKsystems, a global provider of IT staffing, talent management and services. 

“While Elon Musk appears to think he’s saving the company money by avoiding these obligations,” said Shannon Liss-Riordan, who represents the claimants in all of the cases, in an email, “we plan to show him that not meeting his responsibilities can be a lot more costly.”

Also read: Twitter in freefall: After firing 50 top executives on the weekend, Musk sacks 200 more workers

Liss-Riordan also stated that she has submitted private arbitration grievances on behalf of over 1,700 former Twitter workers and freelancers who signed agreements to adjudicate legal conflicts. She claimed that TEKsystems employees did not execute arbitration agreements.

Liss-Riordan also represents employees who have submitted complaints against Twitter with a U.S. labour commission, alleging that they were fired for criticising the business, trying to organise a strike, and engaging in other protected behaviour under federal labour law.

Twitter’s most recent round of layoffs
In the most recent round of layoffs, Musk asked some of the top managers of the social media platform to list out the best performers they have on their teams, so they could be promoted and given fat bonuses. However, Musk then went on to fire these managers and promote the employees from the list to the former manager’s positions. 

Also read: Musk got managers at Twitter to list their best employees for promotion, then fired the managers

Following this, Musk went on to terminate another 200 people for unknown reasons.

It will be interesting to see if any of the other groups of employees who were terminated, take any legal actions against Musk. Insiders from Twitter, report that Musk, following the latest round of terminations had increased his security, and wouldn’t even go to the restroom without his security detail.

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