As Elon Musk’s ownership reign over Twitter begins, so do lawsuits related to the abrupt termination of thousands of employees. Under federal law, employers must give at least 60 days’ notice if they lay off more than 50 workers. Under the New York WARN Act, employers must give at least 90 days’ notice if they lay off more than 25 workers.
According to news reports, a class action lawsuit has already been commenced in California against Twitter for the violation of the WARN Act and CA state law violations. While layoffs often follow a change in control event, state and federal laws (ex. WARN Act) were enacted to prevent mass instability to workers by requiring employers to provide advance notice.
While it remains to be seen what other litigation will ensue and what lessons we can all learn from Mr. Musk, if you are an employer that is considering mass termination, the attorneys at Outside Legal Counsel LLP can help in understanding the requirements of the law and in crafting procedures that help with compliance.
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