Court Rules Against Ex-Twitter Staff in Fee Dispute

A U.S. appeals court has ruled that ex-Twitter employees cannot ask federal courts to intervene in arbitration fee disputes with X.
The decision came after workers claimed the company refused to pay arbitration costs in cases filed over mass layoffs.
The 2nd Circuit said procedural issues must be resolved by JAMS, the arbitration body named in employee contracts.

Circuit Judge Gerard Lynch said district courts stepping in would undermine arbitration’s goals.
He emphasized efficiency and avoiding costly litigation as key reasons for limiting court involvement.
The ruling reversed a Manhattan federal judge who had previously sided with workers.

Most Twitter employees signed agreements requiring disputes to go through JAMS.
Under its rules, employers must pay initial fees of about $1,500 per case.
X argued it was not bound because workers could have opted out when hired.

Attorney Shannon Liss-Riordan, representing former staff, has said X failed to pay fees in hundreds of cases.
Neither she nor the company immediately commented on the latest ruling.
The dispute comes after X agreed last month to settle a California lawsuit over $500 million in severance claims.

Elon Musk’s 2022 takeover led to roughly 6,000 layoffs at Twitter, now rebranded as X.
Former employees have since launched numerous legal challenges over unpaid benefits and terminations.
The court’s decision leaves them to pursue fee disputes directly with JAMS, not federal courts.