More Trouble For Elon Musk As Twitter Employees Sue Company For Refusing To Pay Bonus Despite Promise

At a time when Musk is busy with his US visit, where he recently met PM Modi as well regarding Tesla's entry into India, Twitter employees have given a new headache to the world's richest person

Employees Sue Twitter For Refusing To Pay Promised Bonus

reuters

Twitter employees have sued the social networking platform claiming that it refuses to pay 2022 bonuses, despite promises that they would be paid out at 50% of their target amounts.

Twitter has a cash performance bonus plan that is paid out annually and in the months leading up to Elon Musk¡¯s acquisition of the company in October, executives, including former Chief Financial Officer Ned Segal, said the bonuses would be paid, according to the lawsuit filed on Tuesday in San Francisco federal court.

¡°Twitter refused to pay employees who remained employed by the company in the first quarter of 2023 any bonus,¡± the employees said, as per Bloomberg.

Since Musk took over, Twitter has lost more than half its advertising revenue as brands stopped trusting the site to remove violent, pornographic and hateful content. Twitter also shed more than 75% of its employees, through layoffs and resignations. The site has been roiled by technical difficulties, including during the recent launch of Florida Governor Ron DeSantis¡¯ campaign for president.

The proposed class-action complaint on behalf of former and current Twitter employees who were employed in the first quarter of 2023 and didn¡¯t receive their bonus was filed by Mark Shobinger, who was Twitter¡¯s senior director of compensation until late last month. The job entailed overseeing executive and incentive pay and in November expanded his responsibilities to include employee compensation globally, according to the suit.

Also Read: Elon Musk Calls Meta 'Copycat' For Planning To Launch Twitter Rival

Under Musk, This Is Not The First Lawsuit Against Twitter

fox

Since Elon Musk¡¯s acquisition, the social networking company has been sued numerous times for allegedly failing to pay bills, including rent, and by former employees for severance and back pay.

The social media company has traditionally set a target for its bonus plan, which is funded throughout the year and pays out at least 50% of the target annually, according to the lawsuit.

¡°Both before and after Musk¡¯s acquisition was completed in October 2022, Twitter¡¯s management continuously promised the company¡¯s employees, including the plaintiff that their annual bonus for 2022 would be paid under the Bonus Plan,¡± the employees said in the lawsuit, the report mentioned.

Since Twitter reneged on various promises to its employees, including its refusal to pay the bonuses, Shobinger said he quit. He sued for breach of contract. It remains to be seen how Twitter responds to this.

Also Read: List Of Companies Co-Founded/Headed By Elon Musk

For the latest and more interesting financial news, keep reading Indiatimes Worth. Click here.