Oopsie! Did Elon Musk Just Forget To Comply With This California Law?

//

(Photo by Theo Wargo/Getty Images for TIME)

Today the internet is aflutter with word of the mass layoffs coming to social media giant Twitter, following Elon Musk’s takeover. While many suspected something like this may be in the offing, there’s just one teeny tiny problem.

googletag.cmd.push( function() { // Enable lazy loading. googletag.pubads().enableLazyLoad({ renderMarginPercent: 150, mobileScaling: 2 }); // Display ad. googletag.display( "div-id-for-top-300x250" ); googletag.enableServices(); });

And it has everything to do with employment law.

Sponsored Investing In Mental Health Can Show Concrete ROI. Here’s How. Ways to see proven ROI from a workplace mental health program From Spring Health and Above The Law

As detailed in a Twitter thread by lawyer Lisa Bloom:

googletag.cmd.push( function() { // Enable lazy loading. googletag.pubads().enableLazyLoad({ renderMarginPercent: 150, mobileScaling: 2 }); // Display ad. googletag.display( "div-id-for-middle-300x250" ); googletag.enableServices(); }); googletag.cmd.push( function() { // Enable lazy loading. googletag.pubads().enableLazyLoad({ renderMarginPercent: 150, mobileScaling: 2 }); // Display ad. googletag.display( "div-id-for-storycontent-440x100" ); googletag.enableServices(); }); googletag.cmd.push( function() { // Enable lazy loading. googletag.pubads().enableLazyLoad({ renderMarginPercent: 150, mobileScaling: 2 }); // Display ad. googletag.display( "div-id-for-in-story-youtube-1x1" ); googletag.enableServices(); });

Hmmm, that seems like a problem.

Sponsored Sponsored Law Firms Find Balance In Shifting Talent War With Timely Resource Insights As legal demand and firm capacities fluctuate, firm leaders must find ways to provide clients with swift and responsive legal services and prioritize lawyer work-life… From BigHand Sponsored The Lawyer's Guide to a Comprehensive Open Source Compliance Program Join us on November 16th to uncover the key ingredients of a comprehensive, effective, and efficient compliance program. From Fossa and Above The Law Sponsored PD Appreciation Month: Professional Development & Business Development Mixer 2022 Recent workplace changes like remote work or quiet quitting highlight the value of business and career development training for all legal industry professionals. From Practising Law Institute Sponsored PD Appreciation Month: Professional Development & Business Development Mixer 2022 Recent workplace changes like remote work or quiet quitting highlight the value of business and career development training for all legal industry professionals. From Practising Law Institute

 

Of course firing people now and dealing with the legal ramifications later is a Musk move — something he did at Tesla. And as law professor Michael Oswalt told Yahoo Finance, the financial penalty (back pay, health care costs, and $500/day fine) isn’t always enough for folks to do the right thing:

googletag.cmd.push( function() { // Enable lazy loading. googletag.pubads().enableLazyLoad({ renderMarginPercent: 150, mobileScaling: 2 }); // Display ad. googletag.display( "div-id-for-bottom-300x250" ); googletag.enableServices(); });

“Unfortunately, the penalties for non-compliance with the WARN Act are not that steep,” Michael Oswalt, professor of law Wayne State University Law School Michael Oswalt, told Yahoo Finance. “So in many ways the larger obligation here is moral.”

…

“There’s no excuse for anyone — let alone the richest person in the world — to skirt that minimal level of decency,” he said.

At least one preemptive lawsuit has already been filed against the social media company. Attorney Shannon Liss-Riordan, who filed the lawsuit, said at least some of the employees laid off will continue to be paid through January 4th. But this doesn’t seem like the end of the employment law woes.

Sponsored Sponsored Shifting Dynamics: A New Era of L&E Related Legal Matters How can legal leaders continue to cost-effectively address L&E investigations in this current economic climate? Join us on November 17th to find out. From Axiom and Above The Law Sponsored Investing In Mental Health Can Show Concrete ROI. Here’s How. Ways to see proven ROI from a workplace mental health program From Spring Health and Above The Law

Kathryn Rubino is a Senior Editor at Above the Law, host of The Jabot podcast, and co-host of Thinking Like A Lawyer. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).

Topics

Elon Musk, Employment law, Lisa Bloom