Posted by Gavin Reed.
In recent news, it was reported that twitter had failed to pay millions of dollars in bonuses to their employees. The senior director of Twitter, Mark Schobinger was of the first to report this after Twitters breach of their contract with him in June. The suit was caused by the failure of twitter to pay employees 50% of their previous target bonuses. The rebuttal from the newly renamed “x” stated that they only made an oral promise and that they could not be held accountable for fulfilling their end of the deal. Despite these efforts, the eventual ruling of the case was that “California law governed the case and that Twitter’s contrary arguments all fail.”
This is an example of the importance of knowing the details and laws that you are protected under your contract. Schobinger was able to force twitter/x to give him his bonus all because he is protected under the business laws practiced in California. In the article it states that if the case was handled in Texas the outcome likely would’ve favored twitter, however they were handled in California. In the business field it is important to understand how different laws can vary from state to state. Often large companies and corporations have multiple locations throughout the entire country, and sometimes the world, so it is important to know what laws you must abide by when conducting business in different places.
In conclusion, laws regarding business are the only thing that prevent large, wealthy companies from getting away with whatever they want. These companies are extremely powerful and the only way to balance out power is for the government to be able to monitor different aspects of what the companies are allowed to do. In this case, Schobinger would never have gotten his money back without the help of the Government. Rooting back to the previous point that knowing your rights and the laws you are protected under is extremely important.
Gavin is a businesss administraion major at the Stillman School of Business, Class of 2027.
Works Cited
NBCUniversal News Group. (2023, December 23). Twitter violated contract by failing to pay millions in bonuses, judge rules. NBCNews.com. https://www.nbcnews.com/news/us-news/twitter-violated-contract-pay-millions-bonuses-us-judge-rules-rcna131034Links to an external site.