Elon Musk escapes paying $500 million to former Twitter employees

image via Engadget

July 10, 2024, 8:38 PM

• •A class-action lawsuit filed by former Twitter employee Courtney McMillian was dismissed by a federal judge.
• •The complaint argued that under the federal Employee Retirement Income Security Act (ERISA), the Twitter Severance Plan owed laid off workers three months of pay.
• •Judge Thompson found that the Twitter severance plan did not qualify under ERISA because they received notice of a separate payout scheme prior to the layoffs.

Elon Musk has won a legal battle against former Twitter employees who were laid off and allege that they were not paid their full severance. The case was dismissed by a federal judge who ruled that the Twitter severance plan did not qualify under ERISA because the employees received notice of a separate payout scheme prior to the layoffs.

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