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by harryh 1343 days ago
This post should be flagged off HN.

Everything in the tweet is factually incorrect.

- Companies aren't required to pay severance when doing layoffs.

- There is no evidence that Stripe isn't paying severance when firing for performance (I'd be shocked if they aren't)

- Employees fired for performance are absolutely eligible for state unemployment benefits.

3 comments

> - Companies aren't required to pay severance when doing layoffs.

The WARN act requires advance notice of 60 days. I think most companies prefer to pay severance, but it's pretty much equivalent. California has more strict rules (mostly excluding a bunch of excuses to skip complying).

So yes, Stripe would technically not be required to give severance in the case of a layoff. But they'd be required to keep the people employed for 60 days after telling them they're going to be laid off. I'm not sure there's much of a distinction?

The WARN act only applies for "mass layoff affecting 50 or more employees at a single site of employment."

I'm honestly not sure how this would apply for a remote workforce. Consult your friendly HR or legal team counterpart. :)

I'd be surprised if they did a meaningful staff reduction without hitting 50 employees at their main office in south SF. A 5% reduction (alleged in the tweet) is something like 400 people for Stripe.

Furthermore, the DOL has already described what this means for employees without a clear single site:

> a home base from which work is assigned

> a home base to which workers report

Which arguably will make it worse for a remote team, because all the remote workers may count towards the main hub. This is all vague though, I think there are colorable arguments either way.

As a manager who was forced to participate in this, it is all factually correct.
your comment ought to be flagged off hn as factually incorrect - they are required in canada, where stripe also operates an office
Fair point about Canadian law being different than US law. For the < 5% of Stripe employees there, that does appear to be true. Though I would again point to my 2nd bullet point:

- There is no evidence that Stripe isn't paying severance when firing for performance (I'd be shocked if they aren't)

Stripe operates a single office in Toronto, Canada. No one would be qualified for severance since severance is only eligible after 5 years of employment and Stripe's office has only been open for 2 years.
stripe has acquihired in canada