Are you confused about the lawsuit filed on November 3, 2022 against Twitter claiming that its recent and impending layoffs violate the federal Worker Adjustment and Retraining Notification Act (the “WARN Act”) and state laws? Here’s what you need to know about the WARN Act and the Twitter lawsuit.

The WARN Act requires employers to provide employees with written notice 60 days in advance of covered mass layoffs. WARN and its implementing regulations define “mass layoffs” as those resulting in an employment loss during any 30-day period for 500 or more employees, or for 50-499 employees if they make up at least 33% of the employer’s active workforce.

Further, “employment loss” is not limited to termination. The term includes employment termination, layoffs exceeding 6 months, or a 50% or greater reduction of an employee’s hours each month of any 6-month period. There are also look-back and look-forward provisions in WARN to prevent employers from structuring layoffs in a way that would otherwise avoid triggering WARN’s notice requirements.

Twitter CEO Elon Musk notified employees on November 3 that Twitter would begin laying off employees in early 2023, but that all employees would receive severance pay. However, one of the five named plaintiffs alleged that he was terminated without notice or severance pay. Further, the complaint alleges that in the coming weeks, Twitter is expected to circulate separation agreements to employees containing a release of rights under state law and the WARN Act. The plaintiffs also seek to prevent Twitter from requesting and securing these releases without advising potential class members of the suit or of their rights under such laws. The plaintiffs’ lawyers want to make sure that there is a meaningful class to represent in the lawsuit; that would not be the case if employees signed off on releases.

The plaintiffs seek injunctive relief, forcing Twitter to conform to the federal and state WARN Acts, which both specify a mandatory 60-day notification period ahead of mass layoffs. Further, the plaintiffs seek injunctive relief forcing Twitter to inform employees of the class action before the separation agreements containing releases are circulated. The plaintiffs are also requesting compensatory damages, including expenses and wages owed.

While it cannot be determined at this point if Twitter actually violated the WARN Act, employers need to consider WARN and state “mini-WARN” laws before conducting mass layoffs or plant closings. An employer that violates the federal WARN act is liable to each affected employee for an amount equal to back pay and benefits for the period of violation, up to 60 days.

If you are considering layoffs, hourly reductions, or plant closings, the labor and employment attorneys at Murtha Cullina are ready and able to assist you in complying with these and other laws.

Contact the authors Salvatore Gangemi and Alyssa Ferreone.

Join us on December 9, for our Labor and Employment Group’s annual webinar on updates and developments in labor and employment law. Topics to be discussed include state legislative updates in CT, MA and NY, conduct and behavior standards under the ADA, aging at work, free speech in the workplace, pay transparency changes, paid family medical leave, and recent developments in employee benefits law and immigration. For more information and register.

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Salvatore G. Gangemi Salvatore G. Gangemi

Salvatore G. Gangemi is a Partner in the Litigation Department of Murtha Cullina and a member of the Labor and Employment Practice Group. He advises clients with respect to state, federal and local employment laws. In addition, he litigates matters involving misappropriation of…

Salvatore G. Gangemi is a Partner in the Litigation Department of Murtha Cullina and a member of the Labor and Employment Practice Group. He advises clients with respect to state, federal and local employment laws. In addition, he litigates matters involving misappropriation of trade secrets, restrictive covenants, breach of employment contract, fiduciary duty, and other work-related common law claims. Sal also counsels clients on day-to-day issues involving workplace management and administration, including requests for reasonable accommodation for disabilities, for family and medical leave, and wage and hour issues.  He conducts employment law training on a variety of topics, including sexual harassment prevention and wage/ hour compliance.  He also drafts employment policies and agreements, and assists clients in auditing worker classification practices and policies both in the context of the Fair Labor Standards Act and state laws governing independent contractor determinations.

Photo of Alyssa R. Ferreone Alyssa R. Ferreone

Alyssa Ferreone is an Associate in the Murtha Cullina Litigation Department.

Prior to joining Murtha Cullina, Alyssa was a Judicial Law Clerk for the Honorable Robert J. Devlin, Jr. and the Honorable Melanie L. Cradle at the Connecticut Appellate Court.

Alyssa earned her…

Alyssa Ferreone is an Associate in the Murtha Cullina Litigation Department.

Prior to joining Murtha Cullina, Alyssa was a Judicial Law Clerk for the Honorable Robert J. Devlin, Jr. and the Honorable Melanie L. Cradle at the Connecticut Appellate Court.

Alyssa earned her J.D. from Quinnipiac University School of Law, magna cum laude.  While in law school, Alyssa was a judicial intern for the Honorable Vanessa L. Bryant of the United States District Court for the District of Connecticut.  She served as the Supervising Note Editor on the Quinnipiac Health Law Journal and the Vice Magister of the Burns Inn Chapter of the Phi Delta Phi legal honor society. Alyssa was selected by the law school faculty to receive the Academic Excellence Award at commencement.

Alyssa earned her B.S. from Southeastern University where she named “Most Outstanding Graduate in the Legal Studies Major” at commencement.