Elon Musk’s X Corp. finds itself embroiled in a contentious issue involving overpayment errors and subsequent demands for repayment from several former Australian employees. The company’s actions have been propelled by an error stemming from incorrect currency conversion, as detailed by the Sydney Morning Herald.
Overpayment Error Unraveled
In a series of events dating back to January 2023, X Corp. inadvertently disbursed overpayments ranging from $1,500 to $70,000 per employee to at least six former Australian staff members. These payments constituted a segment of a ‘deferred cash compensation’ scheme tied to employee shares, evaluated at $54.20 USD per share—a value aligned with Musk’s acquisition price of Twitter in 2022. The discrepancy arose due to the adoption of an erroneous conversion rate by X Corp., purportedly set at 2.5 times the actual market value.
Legal Posturing and Employee Response
Amidst this backdrop, X Corp. has issued stern warnings of potential legal recourse to reclaim the funds from the affected ex-employees. However, correspondence from the company’s Asia Pacific HR department reveals that none of the implicated former employees have acquiesced to return the surplus payments as of yet. Noted employment law specialist Hayden Stephens advises that while the employees may be obligated to reimburse the overpaid amounts, they are well within their rights to seek comprehensive clarifications and substantiated evidence regarding the error from X Corp. Australian labor laws traditionally mandate the return of legitimately overpaid sums.
Broader Legal Entanglements
Beyond the confines of this singular incident, X Corp. grapples with an array of legal and employment-related challenges, spanning across both Australian and US jurisdictions. Notably, approximately 2,000 former employees based in the US are embroiled in legal battles and arbitration proceedings against X Corp., primarily revolving around claims of unpaid severance. Settlement negotiations have faltered in numerous instances, exacerbating the standoff between the aggrieved parties and the corporation.
Moreover, X Corp. faces heightened legal scrutiny emanating from its acquisition of Twitter, with four former Twitter executives, including erstwhile CEO Parag Agrawal and former CFO Ned Segal, pursuing litigation against the company. The lawsuit, seeking over $128 million in unpaid severance, is slated for trial in November 2025, further complicating X Corp.’s legal landscape.
