Posted on November 21st, 2022
Find below a complete transcript of this video.
What’s up fellow entrepreneurs. Today I want to talk about Twitter layoffs and the WARN Act. But first I’m an attorney, but I’m not your attorney. So please seek out competent legal advice for your specific legal need or question.
The long feared mass layoffs at Twitter have started and a class action lawsuit has already been filed. The class action claims that the layoffs, which were hastily conducted over email one week after Elon Musk bought the company, according to them, violates the Warrant Act.
So for those of you that have not seen my videos on the WARN Act, there are both state and federal versions of the WARN Act. Essentially the WARN Act requires private companies with at least 100 full-time employees, to provide 60 day advanced written notice prior to conducting a mass layoff of 50 or more people within a 30 day period.
Now, I have trouble believing that Elon Musk and his group of high powered lawyers missed the WARN Act. The named plaintiffs of the case are five former Twitter employees who were terminated this month as part of Twitter’s plan to reduce its workforce by 50%.
So by all accounts, Twitter’s making efforts to comply with the law by paying terminated employees through January. So what is this suit about then? This sounds to me like they’re actually complying with the WARN Act damages.
In WARN Act, violation suits can be up to 60 days of back pay plus benefits, civil penalties up to $500 per day per employee, and of course, the dreaded attorney’s fees. Uh, previously another Musk company – Tesla was sued in Federal Court of Texas alleging WARN Act violations by the same attorney that is now suing Twitter.
According to the legal complaint, Tesla attempted to obtain releases from WARN Act claims from laid off employees in exchange for a week or two of severance pay. Now, that’s the previous case. That case was ordered into arbitration.
So let’s see how it goes, but I think the story is going to be a big nothing burger, but at least it’s a good reminder to watch out for the WARN Act, warn Act if you’re intending to conduct any layoffs in this current recession.
All right, so until next time, be productive.
