- Elon Musk is being sued by former Twitter employees, alleging unpaid severance.
- The arbitration cases could cost Musk’s company millions of dollars.
- This is not the first time that Musk has been accused of not paying his bills.
Elon Musk‘s reported habit of not paying bills is beginning to cause consequences.
Amidst multiple lawsuits claiming that one of the world’s richest individuals didn’t meet severance payment obligations to the 6,000 employees he let go after buying Twitter, repercussions are unfolding.
According to media report on Monday, the technology company now called X is facing approximately 2,200 arbitration cases filed by former employees, with mandatory fees totaling $3.5 million. This amount doesn’t even include the actual severance owed to the employees Elon Musk let go.
In October, shortly after taking over Twitter, Musk carried out a significant layoff affecting more than 50% of the company’s employees. He promised to offer most employees at least two months’ salary along with a week’s pay for each year of their tenure at the company.
Nonetheless, numerous individuals claim they haven’t received any compensation, prompting former employees to initiate multiple legal actions in their quest to obtain the promised benefits.
One lawsuit this year uses an arbitration clause in employees’ contracts. Mashable reports Musk‘s company must pay $1,600 per case, while former employees pay $400. With over 2,000 cases, the total cost nears $4 million.
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One lawsuit this year uses an arbitration clause in employees’ contracts. Mashable reports Musk‘s company must pay $1,600 per case, while former employees pay $400. With over 2,000 cases, the total cost is near $4 million.
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