Ex-Twitter Employee Triumphs in Dispute with Elon Musk Over Severance Pay

Photo : Reuters

Elon Musk has lost a legal battle over unpaid severance to a former Twitter employee who was laid off when he took control of the social media platform in 2022, according to a memo obtained from confidential sources.

This arbitration dispute resolution arrives nearly two years after Musk acquired Twitter for $44 billion and initiated mass layoffs that affected over half of the staff. The move prompted over 2,000 complaints from ex-employees claiming they were underpaid. The recent victory in this case could set a precedent for thousands of former employees who have submitted similar grievances.

“The arbitrator awarded the full severance package to our client,” said attorney Shannon Liss-Riordan in the memo, expressing excitement about the outcome and hoping for more positive developments. However, she did not provide details or disclose the arbitrator’s written ruling due to the private nature of the proceedings.

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In July, Musk and X Corp. (the new name for Twitter) successfully defended against a lawsuit claiming that at least $500 million in severance pay was owed to approximately 6,000 laid-off employees under the federal Employee Retirement Income Security Act.

Liss-Riordan noted that 15 cases have had arbitration hearings, and she anticipates more rulings in the coming months. She expressed hope that, should more favorable decisions arise, Twitter/X would be open to negotiating a settlement for all affected employees.