California Judge Says Twitter Employees Must Be Informed of Potential Class Action Suit Related to Layoffs District Judge James Donato said it would be "misleading" for laid-off employees to sign away their right to sue Twitter before hearing about the suit in the works.

By Gabrielle Bienasz

Opinions expressed by Entrepreneur contributors are their own.

Bloomberg / Contributor I Getty Images
Twitter HQ in San Francisco.

Twitter must inform employees who were let go that a potential class action lawsuit is in the works, a California judge said in an order on Thursday.

Twitter's communication with employees "should not be rendered misleading by omitting material information about a pending lawsuit," the judge wrote, per The Los Angeles Times.

A few Twitter employees are leading what they hope will be a class action suit to take the company to task for failing to give notice about mass layoffs — which is required in California and many other states — and for what they say is it trying to get out of severance agreements.

Donato's order that employees who were laid off need to know about the suit "may be an early indication that the judge could be sympathetic to the employees' argument," as CNN wrote.

The judge asked Twitter to inform its let-go employees about the potential class action because severance agreements include things like promises not to sue the employer for discrimination or wrongful termination, and Twitter has indeed asked proposed a severance deal that gives employees a month of wages for agreeing to not join lawsuits that are against Twitter, per the LA Times.

This particular class action is one of a veritable nest of lawsuits Twitter is facing after laying off half of its workforce last month — from claims that the company laid off more women than men to accusations that its new rules are biased against disabled workers — following the company's acquisition by now world's second-richest-person, Elon Musk.

Shannon Liss-Riordan is involved in all of the above lawsuits and has litigated against Musk before in relation to Tesla layoffs, per the LA Times.

Donato said Twitter employees must be notified with "a succinct and plainly worded notice," in the order.

The Twitter that remains, post-layoffs, has reportedly been chaotic, with Musk demanding in-person work at the previously remote-forward company and demanding that staff be "hardcore" at "Twitter 2.0" or else they could leave, resulting in the departure of thousands of employees.

Related: Elon Musk Slams Twitter Employees With Ultimatum: Prepare to Work 'Extremely Hardcore' or Leave by Thursday

This lawsuit, in particular, is seeking to become a class action (a type of suit that allows many people to join and be awarded damages) but such suits must be certified by a judge before they can become one.

Twitter is seeking to avoid that by moving to force the case into arbitration, saying Twitter employees are bound by agreements already to do so, per Reuters. This means the issue would be settled outside of court.

Donato will hear an argument over whether to push this case into arbitration in January, the LA Times noted.

Gabrielle Bienasz is a staff writer at Entrepreneur. She previously worked at Insider and Inc. Magazine. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

Elon Musk's DOGE Is Hiring People Eager to 'Work Long Hours' to Eliminate 'Waste, Fraud and Abuse' in the Government. Here's How to Apply.

The Department of Government Efficiency is hiring U.S. citizens to help cut spending and headcounts in the federal government.

Branding

How to Build a Strong Brand Identity for Your Early-Stage Startup

Branding might not be your first priority, but neglecting it can hurt your startup. A strong brand identity early on sets the stage for marketing success.

Business News

Uber's CEO Says Drivers Have About 10 Years Left Before They Will Be Replaced

Uber CEO Dara Khosrowshahi says the jobs of human drivers are safe for the next decade, but after that, another type of driver will take over.

Science & Technology

From Data to Destiny — How AI Can Turbocharge Your Business Future

Are you ready to embrace the power of AI with trusted data? Let's transform challenges into opportunities and propel your business into the future.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

'Everyone Can Profit From It': What Is DeepSeek? China's 'Cheap' to Make AI Chatbot Climbs to the Top of Apple, Google U.S. App Stores

DeepSeek researchers claim it was developed for less than $6 million, a contrast to the $100 million it takes U.S. tech startups to create AI.