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    Solomon: Elon Musk Triggers WARN Law with Mass Layoffs, Now Facing a Nightmare Situation

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    This week has thrown new information on how pricey Elon Musk’s eventual acquisition of the platform will be for those who believed that $44 billion would be the final purchase price for Twitter.

    Musk was sued on Thursday night for breaking the regulations governing mass firings. In a class action complaint filed in the United States District Court in San Francisco, Twitter is being sued, as Fox News first reported, by five current or former employees of the company.

    The WARN Act, also known as the Worker Adjustment and Retraining Notification Act, was passed in 1988 in order to safeguard employees from mass layoffs.

    Due to the need that businesses provide employees with at least 60 days’ notice prior to a mass layoff or plant closing, the law is also known as the “60-day notice” law. In the event that an employer fails to deliver this notice, he may be liable for back pay up to the date on which the personnel would have received it.

    The entire purpose of the WARN Act is to protect workers by allowing them time to find other employment before they lose their existing ones, as Musk has discovered today. By giving communities some advance notice when a lot of workers are being laid off by one business or institution, it also helps to protect communities.

    Therefore, while Musk may have believed it was wise to fire around half of the Twitter employees all at once without giving adequate notice from an economic perspective, it was obviously not wise from a legal perspective.

    Tim George, an attorney, and I discussed the Twitter lawsuit on Friday morning. “Elon Musk has to deal not only with federal WARN legislation but, given that the Twitter offices are in San Francisco, California’s state WARN legislation, which raises the bar,” he stated.

    Musk would have needed to notify the Local Workforce Development Area office of San Francisco as well as the top elected official of each city and county government where the terminations took place. However, the lawsuit complaint shows that Musk did not do this.

    All of this is predictable, to reiterate. Those of us who carefully follow the continuing Twitter/Musk made-for-TV drama anticipated layoffs, but not as swiftly or ineptly as was suggested in Twitter’s Thursday night memo to staff, which NBC News was able to receive.

    In the end, as his words and deeds have demonstrated since the time he has become a stakeholder of the social media behemoth, Musk is free to do whatever he likes with Twitter. But there is a real and reputational cost when he decides to act in the worst way imaginable, as he frequently appears to do.

    More on this story via The Western Journal:

    Here, Musk will settle or lose the class action lawsuit. Either way, it’s going to cost him and add to the real acquisition cost of the company, which will eventually significantly eclipse the $44 billion purchase price.

    All of this comes in a week that must have seemed like a month to Musk. From his real-time run-ins with Stephen King and Rep. Alexandria Ocasio-Cortez to whether regulators decide to investigate the details of his acquisition of Twitter, Musk is either charting his own very unique course or a tire fire in the making. CONTINUE READING…

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