Elon Musk-led Twitter is facing one of the worst times in its history, as the company is now freshly sued by its current and former employees for defaulting on bonus pay.
Led by Twitter’s former compensation director, the class action lawsuit seeks 50% of the bonus payment from last year – which Twitter hasn’t paid till now, despite repeated promises. Twitter is yet to respond to this.
Defaulting on Employee Bonuses
Ever since Elon Musk took over Twitter, the social media platform has been strangled with several allegations. Some include employee accusations of unfair terminations, getting kicked out of its offices due to non-payment of rent, being sued by some creditors on default payments, and losing half of its advertising revenue due to intriguing policies.
As if these pains aren’t enough, Twitter is now freshly caught with a class-action lawsuit led by its former senior director of compensation Mark Shobinger. As per his filing in the San Francisco court this week, Shobinger accused Twitter of a breach of contract regarding the payment of bonuses from last year.
He termed this class action because he pooled the former and current Twitter employees who were pending of their last year’s bonuses. They allege that the company has failed to pay their cheques despite repeated promises from the Chief Financial Officer, Ned Segal.
Shobinger claims to have quit the company since he didn’t get the proposed bonus, which Twitter has traditionally set at 50% of the funds – to be paid annually. And with Twitter dumping its entire media relations team, we cannot know what’s happening at the company.
