Twitter is being sued by its former employees again — this time for allegedly refusing to pay the expected cost of legal arbitration. As previously reported by Bloomberg, the suit was filed on July 3rd in the Northern District of California. It seeks to force Twitter to cover most of the costs in a slew of arbitration claims, which, of course, Twitter doesn’t want to do.
This latest lawsuit is part of a host of litigation between Twitter and many of the thousands of employees it abruptly fired when Elon Musk took over last year. Laid-off employees previously sued Musk for giving insufficient notice before firing them and later altered their claim to add that they were not paid what they were owed in their severance agreement.
But the laid-off employees were forced in January to give up the class-action lawsuit in favor of individual arbitration, thanks to a provision in their contract. The contract requires they use JAMS, a professional arbitration services firm, and JAMS, in turn, requires both parties to abide by a set of rules it lays out on its website.
The employees’ lawyer was very quick to point out they’d already begun filing arbitration claims. But now, those claims are in limbo. As part of JAMS’s fee schedule, the employees are on the hook for a “relatively nominal” amount of the filing fees, which cost $2,000 for a two-party arbitration, with Twitter picking up the rest. Twitter responded to them by requesting that JAMS allow them to split the cost evenly...
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