US judge okays suit against X over unpaid bonuses to go on – Times of India

US judge okays suit against X over unpaid bonuses to go on - Times of India

On Friday, a federal judge approved the lawsuit against the social media company. xin which workers claim the company promised but never paid out millions of dollars in bonuses.
in June, Mark ShubingerA former senior director of compensation for Twitter Who lives in Texassued the company claiming breach of contract under California Law Shobinger Before and after Elon Musk bought Twitter, the company verbally promised employees 50 percent of their 2022 targeted bonus if they stayed with the company through the first quarter of 2023, he said. However, the bonus was never paid. More than $5 million, according to court records.
In a three-page opinion denying the company’s motion to dismiss, U.S. District Court Judge Vince Chhabria Northern District of California ruled that Schobinger had a “breach of contract claim” under California law.
Schobinger maintained that he was involved in the bonus plan and had remained with the company until the last payment date. “Once Schubinger did what Twitter said, Twitter’s offer to pay him a bonus in return became a binding contract under California law,” the judge wrote. The company’s lawyers had argued that the performance bonus plan “is not an enforceable contract, as it provides only discretionary bonuses”. The company argued that the oral promise was not a contract and that Texas law should apply, but the judge found that California law governed the issue. But, the judge wrote, “Twitter’s counterarguments all fail.”

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