Elon Musk’s X Faces Discrimination and Breach of Contract Allegations

In recent news, X (previously known as Twitter) faces discrimination and breach of contract allegations.

The Case: Chris Woodfield v. Twitter/X

The Court: U.S. District Court, State of Deleware

The Case No.: 1:23-cv-00780-UNA

The Plaintiff: Chris Woodfield v. Twitter/X

The plaintiff in the case, Chris Woodfield, filed a workplace discrimination and breach of contract lawsuit on July 18th in Delaware. In addition to breach of contract and discrimination allegations, Woodfield alleged the company engaged in fraud. According to Woodfield, X targeted women, older employees, and employees of color in the mass layoffs. Woodfield also claims that the company stalled attempts to address the dispute through arbitration, specifically claiming that the company failed to pay the required fees to initiate arbitration of the issues. Like the California ERISA violation lawsuit the company faces, the Woodfield v. Twitter/X lawsuit claims the company owes former employees more than $500 million.

The Defendant: Chris Woodfield v. Twitter/X

The defendant in the case, Twitter/X, engaged in multiple layoffs after new ownership/management took over the social media giant. Nearly 4,000 workers were laid off (layoffs occurred in November 2022, twice in December 2022, and again in February 2023). According to court documents, HR officials at the company repeatedly told Musk and employees that any laid-off employees would be eligible for severance pay as determined in their 2022 agreement when X merged with Twitter.

The Case: Chris Woodfield v. Twitter/X

The case, Chris Woodfield v. Twitter/X, makes it clear how important it is for employers to be transparent about their severance benefits. Employers must communicate the reasons behind any layoffs clearly to all affected employees and explain the severance packages they receive in detail. Employers and employees benefit from a consistent severance pay policy that clearly outlines the criteria for determining any potential severance pay package based on pre-determined factors like time at the company, job title/level, performance history, etc. The clearly outlined policy must then be followed with a consistent application of the policy to all employees to avoid discrimination.

If you have questions about how to file a California discrimination class action lawsuit, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.