Twitter withheld millions of dollars in employee bonuses

On December 23, Reuters cited an indictment from the Northern District of California Federal Court saying that Federal Judge Vince Chhabria had dismissed Twitter's (now X) defense of the lawsuit against the company for breach of labor contract brought by former employee Mark Schobinger in June as having grounds.

Mark Schobinger was Twitter's senior director of compensation before leaving the company in May 2023. According to Schobinger's lawsuit, during the time billionaire Elon Musk was merging Twitter - the company committed to paying Schobinger at least 50% of his planned 2022 bonus.

Twitter, now X, is facing multiple lawsuits from former employees and executives after billionaire Elon Musk bought the company and fired more than half of its workforce. (Photo: Reuters)

However, Twitter later failed to pay the promised bonuses to Schobinger and many other employees, which amounted to millions of dollars.

In rejecting Twitter's defense, Judge Vince Chhabria said Twitter had breached its employment contract with Schobinger under California law and the former Twitter employee could seek the money back.

"Because Schobinger complied with Twitter's requests, the promise to pay him a reward became a binding contract under California law. Twitter breached the contract by refusing to pay Schobinger the promised reward," Judge Chhabria said.

Twitter, now X, may appeal. The company no longer has a communications office and did not respond to media requests for comment outside of business hours.

X's lawyers had previously argued that the company had made only verbal promises, not written ones, and that the dispute should be governed by Texas law. However, the judge ruled that the case was being heard under California law and that "Twitter's arguments were unpersuasive."

X is facing multiple lawsuits from former employees and executives after billionaire Elon Musk bought the company and fired more than half its workforce. The lawsuits include claims that X discriminated against older employees, women and workers with disabilities, and failed to provide notice before mass layoffs. The company denies any wrongdoing.

Tra Khanh (Source: Reuters)

Source: https://vtc.vn/twitter-quyt-hang-trieu-usd-tien-thuong-cua-nhan-vien-ar842957.html