WORKSPAN DAILY |
Lessons Can Be Learned from Infamous Zoom Mass Firing
The CEO of an upstart digital mortgage
company has been the subject of international derision after recently firing
900 Better.com workers via a Zoom call.
While Vishal Garg’s action and timing make
him an undisputed favorite for the Ebenezer Scrooge Boss of the Year Award, it
does raise questions about the legality of sensitive conversations with
employees, especially in this virtual world of work.
“Is it legal?” asked James Silvers, a
shareholder Ogletree, Deakins, Nash, Smoak & Steward. “I’m not aware of any
law that you have to fire someone a certain way, such as one-on-one. Just
because something is legal, it doesn’t mean it’s a good thing to do.
“It’s ideal to have such a meeting be one-on-one.”
Actually, that’s a qualified one-on-one since Silvers advises having more than
one person from the company in on those meetings.
“You
have to remember, this is some of the worse news people are ever going to get.
It’s a sensitive topic and should be handled as such,” said Silvers, adding
that one reason he got into his specialty was that his mother was
unceremoniously laid off from her job while he was in law school.
The attorney said that when he heard of
Garg’s mass firing, he wondered if it fell under the WARN (Worker Adjustment
Retraining Notification) Act. The WARN Act calls for a 60-day notice for
qualifying mass layoffs or plant closings.
“But the WARN Act applies to a single
site,” Silvers said. “And, what’s a single site for a digital company?”
While it’s not mandatory to record such
meetings, always act under the assumption that you are being recorded. “It’s
always a good place from which to operate,” Silvers said.
Other conversations should fall under
those guidelines, he added. “Any kind of employee discipline, employee
improvement plan or salary discussion. Think of what kind of conversations with
your boss you would like to be private.”
He also recommends letting people know a
meeting is coming up, so they aren’t taken by surprise.
Finally, Silvers, a self-proclaimed
Luddite, says work with IT before such virtual meetings. “Make sure the
meetings are encrypted, so someone can’t jump in and interrupt you.”
Garg, 43, could not be reached for
comment. He is taking an undisclosed amount of time off after a
too-little-too-late apology. Meanwhile, as Yahoo!
Finance reported, several Better.com C-suiters have quit while the board of
directors plans to hire a third-party company to perform a “leadership and
cultural assessment,” which will be used to “build a long-term sustainable and
positive culture.”
About the Author
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Jim Fickess writes and edits for WorldatWork.