Elon Musk accused of owing $500m in Twitter severance

A former human sources boss at Twitter has accused the corporate of failing to pay roughly $500m (£385m) in severance pay owed to former workers of the corporate.

Courtney McMillian, who was the social media website’s former “head of whole rewards”, made the declare in a class-action lawsuit.

The criticism says Twitter proprietor Elon Musk knew in regards to the severance plan earlier than he sacked hundreds of workers.

Nevertheless it says he balked on the “expense”.

It’s the newest of a number of lawsuits filed towards the corporate over the mass firings that adopted Mr Musk’s buy of Twitter for $44bn (£34bn) final yr.

The layoffs finally affected roughly 6,000 individuals, in line with the lawsuit.

Beneath Twitter’s severance plan, workers have been as a consequence of obtain a minimal of two months base wage in severance and a money contribution towards medical health insurance, amongst different advantages, in line with the criticism filed in federal court docket in San Francisco.

These with extra senior roles, together with Ms McMillian, have been due six months base wage in severance pay, plus one week for every full yr of expertise, it says.

However workers acquired “at most” three months of pay after they have been sacked. That included one month of severance, in addition to two months value of pay to adjust to a US regulation geared toward offering staff with discover of firings, in line with the criticism.

That was a “fraction” of the $500m to which workers have been entitled, it says.

Twitter, which not has a public relations division, didn’t remark.

Mr Musk stated in November following a spherical of mass layoffs that workers would obtain three months value of pay, “50% greater than legally required”.

The criticism accused Mr Musk of deceptive workers about whether or not the corporate would honour the plan, main some to stay on the agency for longer than they’d have in any other case.

“Musk initially represented to workers that underneath his management Twitter would proceed to abide by the severance plan,” stated Kate Mueting, the lawyer from Sanford Heisler Sharp who’s representing Ms McMillian.

“He apparently made these guarantees understanding that they have been essential to forestall mass resignations that might have threatened the viability of the merger and the vitality of Twitter itself,” she added.

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