A federal judge in the United States has mandated that X, previously recognized as Twitter, must address a case filed by workers who assert they were denied promised incentives.
The lawsuit alleges that despite commitments made by the micro-blogging platform’s executives, X, now under the ownership of billionaire Elon Musk, failed to fulfill its promise of yearly bonuses to employees.
Launched in June 2023, a class-action lawsuit, led by former senior director of compensation Mark Schobinger, represents both current and former X employees who were allegedly denied their 2022 bonuses. In a recent ruling, US District Judge Vince Chhabria declared, “Twitter’s offer to pay him a bonus in return became a binding contract under California law.”
The complaint details that X leaders consistently assured employees, leading up to Musk’s acquisition, that 2022 bonuses would be distributed at 50% of the target. Even after the acquisition was finalized, these assurances were purportedly reiterated. However, X allegedly failed to deliver on these promises, leading to the filing of the complaint.
Schobinger, who departed in May, claimed that Twitter reneged on various promises made to employees, including the failure to fulfill the pledged bonuses. As the legal battle unfolds, X finds itself under scrutiny for potential contractual breaches and employee discontent.
