Bloomberg reported that Twitter Inc. was sued over Elon Musk’s decision to lay off approximately 3,700 employees at the social media company.

According to employees, the business is violating federal and California law by not providing appropriate notice.

A federal court in San Francisco received a class-action lawsuit on Thursday. Twitter notified its employees via email that staff reductions would begin on Friday. According to sources familiar with the matter, Musk plans to lay off half of the employees at the platform he acquired for $44 billion last month in order to reduce costs.

The Federal Worker Adjustment and Retraining Notification Act (WARN Act) prohibits large firms from engaging in mass layoffs without providing at least 60 days’ notice.

The lawsuit asks the court to issue an order requiring Twitter to comply with the WARN Act and banning the company from requiring employees to sign agreements waiving their right to participate in legal actions.

According to Shannon Liss-Riordan, the attorney who filed the complaint on Thursday, “We filed this case tonight in an attempt to make sure that employees are aware that they should not sign away their rights and that they have a route for pursuing their rights.” When the electric vehicle manufacturer led by Musk let go of around 10 per cent of its workers in June, Liss-Riordan filed a lawsuit against the company with identical allegations.
The workers in that lawsuit were ordered by Tesla to pursue their claims through secretive arbitration rather than in front of a judge. In an interview with Bloomberg’s Editor-in-Chief John Micklethwait at the Qatar Economic Forum in June, Musk had referred to the Tesla case as “trivial.”
“We will now see if he is going to continue to thumb his nose at the laws of this country that protect employees,” Liss-Riordan stated, referring to Musk. “It appears that he’s repeating the same playbook of what he did at Tesla.”