A number of Twitter employees fired after Elon Musk’s takeover of the platform are suing the company, alleging it refused to pay at least $500 million in severance pay.
Courtney McMillian, who oversaw employee rewards programs at Twitter until she was fired in January, filed a class action lawsuit in San Francisco federal court.
According to McMillian, under the severance plan approved by Twitter in 2019, most workers were promised two months of their base pay, plus a week’s pay for each full year of service if laid off.
The lawsuit said that laid-off senior employees like McMillian were entitled to six months of base pay, but Twitter gave them no more than one month of severance pay, and many of them received no other compensation.
Twitter laid off more than half of its workforce as a cost-cutting measure after Musk acquired the company last October.
The lawsuit accuses Twitter and Musk of violating federal law governing employee benefit plans.
Source: The Guardian