US judge okays suit against X over unpaid bonuses to go on

A federal judge on Friday gave the go-ahead to a lawsuit against the social media company X, in which workers claim that the company promised but never paid millions of dollars in bonuses.
In June, Mark Schobinger, a former senior director of compensation for Twitter who lives in Texas, sued the company, claiming breach of contract under California law. Schobinger said that both before and after Elon Musk bought Twitter, the company had orally promised employees 50% of their 2022 targeted bonuses if they stayed with the company in the first quarter of 2023.However, the bonuses were never paid.The amount in dispute is greater than $5 million, according to court records.
In a three-page opinion denying the company’s motion to dismiss the case, Judge Vince Chhabria of the US District Court for the Northern District of California ruled that Schobinger had “plausibly stated a breach of contract claim” under California law.
Schobinger maintained that he was covered by the bonus plan and that he had stayed with the company through the final payout date. “Once Schobinger did what Twitter asked, Twitter’s offer to pay him a bonus in return became a binding contract under California law,” the judge wrote. Lawyers for the company had argued that the performance bonus plan was “not an enforceable contract, because it provides only for a discretionary bonus,” the ruling said. The company argued that an oral promise was not a contract and that Texas law should apply, but the judge found California law governed the case. But, the judge wrote, “Twitter’s contrary arguments all fail.”

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