X, formerly known as Twitter, is currently confronting over 2,200 arbitration claims brought forth by former employees. Legal representatives for X disclosed these arbitration statistics in official documents submitted to the U.S. District Court in Delaware.
These documents were in response to a lawsuit initiated by former employees who assert that the company neglected to fulfill its commitment to provide severance pay. Furthermore, the plaintiffs allege that X is impeding the arbitration process by failing to cover the necessary fees required to initiate proceedings.
According to information from the JAMS arbitration system as reported by CNBC, the filing fee for each claim in the Twitter case would amount to $2,000, with $400 of that sum designated as the former employee's responsibility. According to the lawsuit, the arbitration process is being obstructed by X's refusal to contribute its portion of the fees, which is alleged to total around$3.5 million. However, the company refuted this assertion in its most recent submission to the court.
Arbitration agreements have become increasingly customary terms of employment within the United States. Typically, apart from a nominal filing fee, the majority of costs associated with arbitration are borne by the employer. Employers get the benefit of having the matter resolved in a private forum and limited appeal rights.
If you are an employer seeking advice on whether to include an arbitration provision in your on-boarding documents or an employee seeking representation in a proceeding, please reach out to schedule a consultation with one of our attorneys.
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