X is under a new lawsuit after a federal judge ruled that X, formerly Twitter, had failed to pay its employees the promised annual bonuses which accounted for millions of dollars in total.
X Employees Accused Company of Not Paying Bonuses
The lawsuit was filed in June 2023 in the San Francisco federal court by the former senior director of compensation at X, Mark Schobinger. On behalf of the affected employees, Schobinger detailed that several former and current X employees did not receive their 2022 bonus.
According to the suit, employees were promised to receive 50% of their 2022 target bonuses before and after Elon Musk acquired Twitter that year. However, the payments were never fulfilled by the company.
"Once Schobinger did what Twitter asked, Twitter's offer to pay him a bonus in return became a binding contract under California law. And by allegedly refusing to pay Schobinger his promised bonus, Twitter violated that contract," U.S. district judge Vince Chhabria ruled.
On the other hand, X argued that the promise was not written in the contract and was only an oral promise. Further, the Texas law should govern the case. The judge ruled that all of X's contrary arguments failed and that California law governed the case.
X Ends 2023 With Lawsuits
As 2023 nears its end, the Musk-led company faced numerous lawsuits filed by former employees and executives. Moreover, with only over a year under the new ownership the company laid off several employees which led to a massive backlash.
In addition, there were also discriminatory cases filed against X, with employees claiming such practices against older employees, women, and workers with disabilities. The company also allegedly failed to give advance notice of the mass layoffs.
Regardless, X remained firm that it had not done anything wrong since the turnover. On the other hand, Musk also implemented several changes starting from changing the company name from Twitter to X. The company has also been looking for more ways to boost its advertising power.
