Judge Slams Twitter for Skipping Out on Millions in Employee Bonuses

Samiksha Jain
Dec 27, 2023
2 min read

X Corp (Ex-Twitter) Accused of Breaking Bonus Payment Promises

A judge recently ruled that a company previously known as Twitter, now called X Corp, didn't pay millions of dollars in bonuses it had promised to its workers. Mark Schobinger, who used to be in charge of employee pay at Twitter and left the company in May, sued them in June for not keeping their word on contracts. He said that before and after the famous billionaire Elon Musk bought Twitter last year, the company promised to give employees half of their planned bonuses for 2022, but they never actually paid these bonuses.

Judge Chhabria Sides with Ex-Employee in Twitter Bonus Lawsuit

The judge, Vince Chhabria, decided not to throw out the lawsuit against Twitter. He said that Mark Schobinger, who used to work there, might be right about Twitter breaking a contract under California law. Schobinger was part of a bonus plan at Twitter. The judge explained that when Schobinger did his job as Twitter asked, the company's promise to give him a bonus turned into an official agreement. By not paying him the bonus they promised, Twitter broke this agreement. This is why the judge is letting the case go forward.

X Corp's Jurisdiction Argument Overruled, Judge Upholds California Law

The company, now known as X, doesn't have a media relations office anymore and didn't respond right away when asked for a comment through their X account outside of work hours. Twitter's lawyers said that the company only made a spoken promise, which they argued isn't a legal contract. They also believed that the case should be handled under Texas law. However, a news outlet called Courthouse News, which first reported this decision, mentioned that the judge disagreed. The judge decided that the case should be under California law and that Twitter's arguments against this didn't hold up.

Former Employees Sue X Corp Alleging Bias and Mass Layoff Issues

Since Elon Musk bought the company and cut more than half of its staff, X (formerly known as Twitter) has faced many lawsuits from former employees and leaders. These lawsuits accuse X of several things. They say the company was unfair to older workers, women, and employees with disabilities. Also, they claim that X didn't give enough warning before laying off a lot of people at once. Despite these accusations, the company insists it hasn't done anything wrong.

FAQs

1. What is X Corp accused of in the recent lawsuit?

X Corp, previously known as Twitter, is accused of not paying millions in bonuses they promised to their employees.

2. Who is suing X Corp and why?

Mark Schobinger, a former senior director of compensation at Twitter, is suing X Corp for breach of contract. He claims the company didn't pay the promised bonuses to employees.

3. Who is suing X Corp and why?

Mark Schobinger, a former senior director of compensation at Twitter, is suing X Corp for breach of contract. He claims the company didn't pay the promised bonuses to employees.

4. What legal argument did Twitter's lawyers make?

Twitter's lawyers argued that the promise of bonuses was only verbal and not a legal contract. They also wanted the case to be governed under Texas law.

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