CEO Doubles Severance Pay For Workers He Fired On ZOOM (Without Notice) As Lawsuit Looms

  • Better.com has increased its severance package from 28 to 60 days of pay for its 900 abruptly laid-off employees, perhaps to avoid a class-action lawsuit.
  • A law firm is “investigating” a case against Better.com for violating the Worker Adjustment and Retraining Notification Act, a law requiring some employers to provide written notice of layoffs 60 days in advance. 
  • After the infamous ZOOM mass-firing, three marketing and communications executives have resigned, and CEO Vishal Garg has opted to take a leave of absence.

Alex Nicoll and Sindhu Sundar from Insider write:

“Better has increased severance for its 900 recently laid-off employees to 60 days of pay, up from four weeks, according to an email the online-mortgage startup sent to two separate laid-off employees Thursday that was viewed by Insider.

The increased compensation comes with lawyers exploring litigation that would accuse Better of breaking a federal law requiring medium and large employers to give notice before layoffs.

It appears to have helped keep some litigation at bay, with Benjamin Johns telling Insider on Thursday that his firm, Chimicles Schwartz Kriner & Donaldson-Smith LLP, which has offices in Delaware and Pennsylvania, had removed a call from its website for laid-off employees to provide information.

The firm had said it was “investigating” a case against Better over the Worker Adjustment and Retraining Notification Act, a law requiring some employers with more than 100 workers to provide written notice of layoffs 60 days in advance. Better had roughly 10,000 employees before the abrupt termination of 9% of its workforce on December 1…”

See full story here.



Categories: Business, Economy, Labor, Tech

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