On 22 December 2023, a federal judge determined that Twitter, now known as X, violated contracts by not fulfilling promised bonuses, totaling millions of dollars, for its employees. Mark Schobinger, former senior director of compensation, Twitter, who left Elon Musk’s company in May, filed a lawsuit in June, citing breach of contract.
The legal action claimed that Twitter, both before and after Elon Musk’s acquisition last year, committed to providing employees with 50 per cent of their 2022 target bonuses but failed to do so.
X no longer has a media relations office. Twitter’s lawyers argued that the company only made an oral promise, which they claimed wasn’t a binding contract. As per the media, the judge decided that California law applied to the case and rejected Twitter’s counterarguments.
Since Musk acquired X and downsized more than half of its workforce, the company has faced numerous lawsuits from former employees and executives.
These legal actions involve various allegations, such as discrimination against older employees, women and workers with disabilities, as well as failure to provide advance notice of mass layoffs. X denies any wrongdoing.
In rejecting Twitter’s attempt to dismiss the case, US district Judge Vince Chhabria ruled that Schobinger made a plausible breach of contract claim under California law and was covered by a bonus plan.
The judge stated that after Schobinger fulfilled Twitter’s requirements, the offer to pay him a bonus became a binding contract under California law. Allegedly refusing to pay Schobinger the promised bonus, Twitter was deemed to have violated that contract.
Value our content... contribute towards our growth. Even a small contribution a month would be of great help for us.
Since eight years, we have been serving the industry through daily news and stories. Our content is free for all and we plan to keep it that way.
Support HRKatha. Pay Here (All it takes is a minute)
