The suit was filed in the United States District Court for the Northern District of California, and it alleges that Musk — who reportedly is beginning mass layoffs Friday — violated federal laws that require a 60-day notice period before the beginning of mass layoffs.
The Worker Adjustment and Retraining Notification Act of 1988, which was passed by Congress and became law without the signature of then-President Ronald Reagan, requires that in most circumstances, employers with 100 or more employees provide a 60-day notice in advance of mass layoffs and plant closings.
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Protected employees include both hourly and salaried workers. Exemptions include circumstances where the need for layoffs could not be foreseen due to business circumstances, natural disasters, and situations where a company believes advance notice would get in the way of its ability to obtain new capital.
The WARN Act is enforced by U.S. district courts. California has its own version of the act, and the plaintiffs have also alleged a violation of the Golden State’s laws.
Five Twitter employees are listed as plaintiffs, including one who has already been terminated.