Elon Musk Still Has To Pay More Than 2,000 Laid Off Employees

Elon Musk Still Has To Pay More Than 2,000 Laid Off Employees

Elon Musk’s alleged tendency to neglect paying bills is starting to take its toll.

After numerous lawsuits alleging that one of the world’s richest people failed to pay severance payments to many of the 6,000 employees he laid off after taking over Twitter, the consequences are now emerging.

According to a CNBC report published on Monday, the technology company is now called. This number doesn’t even include the actual severance pay for the workers laid off by Musk.

In October, shortly after taking control of Twitter, Musk carried out a mass layoff that affected more than half of the company’s workforce. The company has committed to paying most employees at least two months’ salary and one week’s salary for each year of service with the company.

However, thousands of people say they received no compensation, prompting former employees to file multiple lawsuits in an attempt to receive promised benefits.

One of the lawsuits filed earlier this year invokes an arbitration clause in employee contracts. As Mashable reports, this provision requires Musk’s company to cover $1,600 in arbitration costs per two-party case, while former employees only have to contribute $400. With a total of more than 2,000 cases, the total cost of the arbitration process for the social network alone is almost $4 million.

X would have challenged the obligation to pay these costs, arguing that it did not require former employees to submit their disputes to arbitration. The former employees then filed another lawsuit, demanding that the company cover the cost of their first deposit.

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