Zeman v. Twitter, Inc.

District Court, N.D. California·Decided September 3, 2024·No. 3:23-cv-01786·Unknown

Opinion

JOHN ZEMAN, Case No. 23-cv-01786-SI

Plaintiff, ORDER GRANTING IN PART v. PLAINTIFF'S MOTION FOR CONDITIONAL CERTIFICATION OF TWITTER, INC., et al., A COLLECTIVE ACTION Defendants. Re: Dkt. No. 68, 69, 79

Before the Court is plaintiff’s motion for conditional certification of a collective action. Dkt. No. 68-3. Defendants oppose. Dkt. No. 78. For the forgoing reasons and for good cause shown, the Court hereby GRANTS IN PART plaintiff’s motion. Plaintiff is a former employee of defendant Twitter, Inc. Dkt. No. 50 (“FAC”) ¶ 1. In or about March 2023, Twitter merged with X Corp., and X Corp. “has successor liability for Twitter’s unlawful acts.” Id. ¶ 11. Plaintiff filed suit on his own behalf and on behalf of other Twitter employees age 50 or older across the country who were laid off after Elon Musk purchased Twitter in late October 2022. Id. ¶¶ 1, 3, 18. Plaintiff alleges that this “mass layoff . . . affected well more than half of Twitter’s workforce” and “[m]ost laid off employees were notified on November 4, 2022, although some were laid off earlier and many were laid off after that date.” Id. ¶¶ 18, 21. Plaintiff alleges that “decisions regarding which employees would be laid off during the initial layoffs were made under extremely hurried circumstances, with little if any regard given to employees’ job performance, qualifications, experience, and abilities.” Id. ¶ 19. Plaintiff further under close supervision of Musk,” some of whom were brought in from other companies owned by Musk “who did not have much, if any, knowledge about Twitter’s operations.” Id. ¶ 22. Plaintiff asserts claims of disparate impact and disparate treatment age discrimination pursuant to the federal Age Discrimination and Employment Act (“ADEA”) and the New York State Human Rights Law (“NYSHRL”). Id. ¶ 2. Plaintiff initially sought conditional certification of a collective action under the ADEA to provide notice of this action to the following group of individuals: “All Twitter employees across the United States age fifty (50) or older who have lost their jobs since Elon Musk acquired the company.” Dkt. No. 69 at 1. In his reply, plaintiff indicates that he has no objection to limiting the class to individuals age 50 and older who were “laid off” or “terminated” as “part of the November 4, 2022, RIF.” Dkt. No. 80 at 1 n.1, 10. Plaintiff indicates that there are roughly 149 employees age 50 or older who were laid off on November 4, 2022. Id. at 1-2; FAC ¶ 27. Plaintiff also indicates that his counsel already represents approximately 2,000 employees laid off following Musk’s acquisition of Twitter, and that plaintiff would exclude from the notice process any employees already represented by his counsel or by other counsel. Dkt. No. 69 at 10 n.1. In support of his motion, plaintiff points to allegations in his FAC about a statistical analysis performed by a labor economist and “ageist comments made by Elon Musk around the time he purchased Twitter.” Dkt. No. 69 at 7; FAC ¶¶ 23-24, 31-33. He also points to deposition testimony from Musk where Musk testified that he “discriminate[d] on the basis of merit and nothing else,” he “would be surprised” if the layoffs had a disparate impact on any protected groups, and he did not have a disparate impact analysis done and “simply asked that we assess excellence and necessity.” Dkt. No. 69, Ex. B at 195:14-196:4. Plaintiff further submits a one-word email from Musk in which Musk responded “[a]pprove” to an email from Twitter’s Vice President of Corporate Finance asking Musk to review and reply “approve” or let them know if he had any questions regarding the “current proposal [] to terminate 3,789 employees on Friday, November 4, 2022 – which represents 51% of the 7,397 population.” Id. Ex. C. Lastly, plaintiff submits a short declaration about his being laid off that does not reference the laying off of any other employees. In support of their positions, defendants submit, among other things, a declaration from Lauren Wegman, Senior Director, People at X Corp. Dkt. No. 78-1 (“Wegman Decl.”). Wegman declares that as of November 4, 2022 there were 32 U.S. employees in the Communications job category and that records show that all 32 of these employees, including plaintiff, were laid off in the November 4 reduction in force (“RIF”). Id. ¶ 3. Plaintiff was the only employee in the Communications department over 50 years old. Id. Wegman further declares that following the acquisition, X offered severance packages with release agreements to many employees who “separated from the company” that include a “general release that covers any employment-related claim against the company.” Id. ¶ 6. Defendants also submit deposition testimony from Musk and four other individuals as well as excerpts of Dr. Killingsworth’s testimony from an arbitration. See Dkt. No. 78-2 (“Berry Decl.”).1 The ADEA prohibits employers from “[discharging] any individual or otherwise [discriminating] against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual's age.” 29 U.S.C. § 623(a)(1). The ADEA is “enforced in accordance with the powers, remedies, and procedures” of the Fair Labor Standards Act (“FLSA”). 29 U.S.C. § 626(b); Heath v. Google LLC, 345 F. Supp. 3d 1152, 1164 (N.D. Cal. 2018). Section 216(b) of the FLSA provides that one or more employees may bring a collective action against any employer on behalf of “themselves and other employees similarly situated.” 29 U.S.C. § 216(b). Under this provision, “workers may litigate jointly if they (1) claim a violation of the FLSA, (2) are ‘similarly situated,’ and (3) affirmatively opt into the joint litigation.” Campbell v. City of Los Angeles, 903 F.3d 1090, 1100 (9th Cir. 2018). The FLSA does not define the term “similarly situated” and the Ninth Circuit has yet to interpret this phrase. Heath, F. Supp. 3d at 1164; 29 U.S.C. § 216(b); Campbell, 903 F.3d at 1100 (“Given . . . gaps [in the FLSA], much of collective action practice is a product of interstitial judicial lawmaking or ad hoc district court discretion.”). However, the Ninth Circuit in Campbell did indicate that “what matters is not just any similarity between party plaintiffs, but a legal or factual similarity material to the resolution of the party plaintiffs’ claims, in the sense of having the potential to advance these claims, collectively, to some resolution.” 903 F.3d at 1115. A majority of courts, including district courts in this circuit, follow a two-step process for determining whether a collective is “similarly situated.” Rabin v. PricewaterhouseCoopers LLP, No. 16-CV-02276-JST, 2018 WL 3585143, at *5 (N.D. Cal. July 26, 2018); see also Campbell, 903 F.3d at 1100; Leuthold v. Destination Am., Inc., 224 F.R.D. 462, 466-67 (N.D. Cal. 2004). The first step of this two-step approach “considers whether the proposed class should be given notice of the action” based on “the pleadings and affidavits submitted by the parties.” Adams v. Inter-Con Sec. Sys., Inc., 242 F.R.D. 530, 536 (N.D. Cal. 2007). The “sole consequence of a successful motion for preliminary certification is the sending of court-approved written notice to workers who may wish to join the litigation as individuals.” Campbell, 903 F.3d at 1101 (internal quotation marks and citations omitted). “In the second step, the party opposing the certification may move to

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