Tesla Inc TSLA CEO Elon Musk-led Twitter has reportedly been sued over plans to eliminate nearly half of its workforce.
What Happened: The class action lawsuit was filed in San Francisco, California in a federal court by attorney Shannon Liss-Riordan, reported Bloomberg.
“We filed this lawsuit tonight in an attempt the make sure that employees are aware that they should not sign away their rights and that they have an avenue for pursuing their rights,” said the attorney.
Twitter is planning to initiate layoffs on Friday, according to a company email seen by Bloomberg.
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Why It Matters: The federal Worker Adjustment and Retraining Notification (WARN) Act requires a 60-day advance notice to be given to employees before mass layoffs can be initiated by companies, noted Bloomberg.
In June, Tesla faced a class action lawsuit which was started by two employees who said they were not given any advance notice of termination. The two were fired among a group of 500 employees from the automaker’s Nevada battery factory.
Liss-Riordan was involved in the Tesla lawsuit, where the company won a ruling from a federal judge in Austin, forcing workers to pursue their claims in closed-door arbitration instead of in open court, reported Bloomberg.
She reportedly said that Musk is repeating his “playbook” of what he did at Tesla. “We will now see if he is going to continue to thumb his nose at the laws of this country that protect employees,” said Liss-Riordan.