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Twitter was sued over Elon Musk's plan to lay off about half of its workforce, Bloomberg News reported on Friday, citing a class-action lawsuit filed in a San Francisco federal court.
Twitter employees say the company is eliminating workers without enough notice, in violation of federal and California law, the report said.
In a thread that has now gone viral, a lawyer in Los Angeles explained that under California's 'WARN' law, companies are required to provide a 60-day notice prior to a massive layoff.
"A layoff of 50+ employees within a 30 day period qualifies. I know you didn't get that notice," lawyer Lisa Bloom tweeted, addressing the employees.
She elaborated on the legalities here:
Employers who violate the WARN law could face penalties of up to $500 a day for each violation, Bloom added in the thread.
"With thousands of employees, this could be significant, though maybe not to Elon," she said.
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A company-wide email seen by AFP says that Twitter employees would receive word via email at the start of business on Friday (California time), as to what their fate was.
It does not give a number but the Washington Post and New York Times reported that about half of Twitter's 7,500 employees would be shown the door.
Under the law, those sacked are bound to receive a significant compensation, Bloom said.
"Employees laid off in violation of the WARN Act receive back pay at the employee's final rate or 3-year average of compensation, whichever is higher. Twitter would also be liable for workers' medical expenses that would have been covered under an employee benefit plan," she said.
(With inputs from Reuters, AFP)
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