Uber shuts downtown L.A. office, laying off about 80

sellkatsell44

Well-Known Member
Cost of doing business in CA is too high.
Would you rather pay 500$/month or well over 6000/month to a LA employee?
Cal is good for high tech workers/ medical field and govt employees, rest will struggle.
Politicians all have looted the state 😁enjoy😁
Post automatically merged:

$500 per 80 hrs was what my startup was paying this VA in the Philippines 4 years ago. Dang.
 

observer

Well-Known Member
Moderator
As dumb as many of Uber's decisions are, I doubt their HR folks/attorneys missed this (especially since it's the law in their HQ state). It's common for companies to walk people out the door (to prevent sabotage/ill will during the notice period) but instead keep them on the payroll as employees without showing up to work - until the WARN period is over. I'd imagine that's probably what happened here.
Uber has a tendency to think laws don't apply to it.

They probably gave the employees a couple weeks severance and had them sign non disclosure agreement.

They probably also required signing a notice saying a couple weeks severance was fine and by signing and recieving the severance were giving up the right to sue.

I'm sure they also had them sign arbitration agreements at time of hire.

Many employees don't know their rights.

Even with a notice signing away their right to sue, the state has the authority to file a lawsuit on the employees behalf.

Not only is Uber required to notify employees 60 days before a mass layoff, they are also required to notify the state.

Be interesting to see what happens.
 

DriveLV

Well-Known Member
I'm not a lawyer so only guessing here.... but the 60 day warning required by WARN might be covered by handing out a severance for 60+ days of pay.....
Not if they actually refer to it as severance pay. The company would need to keep them on payroll (benefits intact, dates of service on background check, etc).

Uber could keep the employees on payroll for 60 days, and then NOT pay them severance. But severance pay is not a substitute for the WARN act requirements.
 

observer

Well-Known Member
Moderator
Not if they actually refer to it as severance pay. The company would need to keep them on payroll (benefits intact, dates of service on background check, etc).

Uber could keep the employees on payroll for 60 days, and then NOT pay them severance. But severance pay is not a substitute for the WARN act requirements.
Also, if they remain on payroll they can't claim unemployment benefits.
 

Cynergie

Well-Known Member
Cost of doing business in CA is too high.
Would you rather pay 500$/month or well over 6000/month to a LA employee?
Cal is good for high tech workers/ medical field and govt employees, rest will struggle.
Politicians all have looted the state 😁enjoy😁
Post automatically merged:

Guess Golden State was a bit too Progressive for even SF based Uber. Thanks to the steep income tax brackets for IT sector professionals, western WA state isn't far behind CA with the socioeconomic fallout of gentrification. DK will probably be looking to close more CS in Seattle and SeaTac area in the near future.
 

ntcindetroit

Well-Known Member
I always thought Uber should have their office works all sign up to do driving or delivery as a side gig as Uber jobs are not secure. Only thing I do not understand is why move Uber support to Philippine where I heard there is no Uber.
 

observer

Well-Known Member
Moderator
Time to tip off the news media that they violated it.

I sent the author of the LA times article information about WARN info.


California law requires advance notice when laying off 75 or more employees, they are in violation. Federal is 100 or more.
I don't remember for sure, its been many years, but I think the California WARN act is fifty employees laid off.

The 75 number is the minimum number of employees working at a company for the WARN act to apply to that company.

In other words, if a company has 67 total employees and lays off 50 the WARN act doesn't apply to them.

I'll have to go back and read up on it again.
 

Fusion_LUser

Well-Known Member
In fairness to the Philippine call center representatives, I find them to be much easier to understand majority of the time, than call center reps from other parts of the world. But it does suck for the employees in LA who got sacked. Damn, it's not just drivers who are getting disposed off like Dara's used condoms, even actual Uber employees get the same treatment. :cryin:
I got caught up in a Philippine call center hell with SiriusXM and handed the phone to my wife who is Filipino and the loud conversation in Tagalog got the results I was looking for :smiles:
 

observer

Well-Known Member
Moderator
People always want increased minimum wage and this is what happens. Everybody isnt going to get a raise, theyre going to get a pink slip. Just wait till $15 an hour min. The lowest skilled workers will lose their jobs.
Uber would still shift these jobs to the Philippines if the minimum wage was at 8 dollars an hour.
 

producemanjames

Well-Known Member
In fairness to the Philippine call center representatives, I find them to be much easier to understand majority of the time, than call center reps from other parts of the world. But it does suck for the employees in LA who got sacked. Damn, it's not just drivers who are getting disposed off like Dara's used condoms, even actual Uber employees get the same treatment. :cryin:
As if Dara uses rubbers.

6E6AEF34-B258-4030-B209-25E2C0DD7C93.jpeg
 

observer

Well-Known Member
Moderator
Time to tip off the news media that they violated it.

I sent the author of the LA times article information about WARN info.


California law requires advance notice when laying off 75 or more employees, they are in violation. Federal is 100 or more.
Since this is a total shut down and not just a layoff and I read this correctly, the WARN act could be triggered by any amount of people being laid off.

Screenshot_2020-02-19-09-02-38.png
 

Disgusted Driver

Well-Known Member
80 people at perhaps 30k per person including taxes and benefits, that will save them 2.4mil less whatever it costs to operate in the Philippines. 2 mil a YEAR (500K a quarter) will go a long way towards closing their deficit of 1.1 bil a quarter.

Not to worry, Uber copter will swoop in (see what I did there) and start generating profits for them. I'm sure people will rush to use it after Kobe's unfortunate accident.
 

Amsoil Uber Connect

Well-Known Member
Time to tip off the news media that they violated it.

I sent the author of the LA times article information about WARN info.

California law requires advance notice when laying off 75 or more employees, they are in violation. Federal is 100 or more.
So the law changed ? Cause when I was laid-off , 5 years ago, it was 500 employees, and we all got 60 day notices.
Post automatically merged:

Correct. Once they are officially off payroll, and if the severance had been paid in a lump sum, then they would be able to apply for unemployment if they still haven't started new employment.
Yep, what happened to me. Severance paid me for 8 months and still collected unenjoyment.
 
Last edited:

DriveLV

Well-Known Member
Yep, what happened to me. Severance paid me for 8 months and still collected unenjoyment.
Yeah - every state is different. I think in Arizona, even if the severance is paid in a lump sum, you have to wait to qualify for unemployment for a period of time equal to what that severance pay represents. Six months worth of severance paid up front on July 1 means you can't qualify until January 1 in Arizona. In California you can qualify immediately (there's a week waiting period once you file, but that's basically negligible).
 

observer

Well-Known Member
Moderator
So the law changed ? Cause when I was laid-off , 5 years ago, it was 500 employees, and we all got 60 day notices.
Post automatically merged:


Yep, what happened to me. Severance paid me for 8 months and still collected unenjoyment.
California WARN act is more restrictive than the Fed WARN act.

Yea, 500 is more than 50 so you would get a 60 day.

IIRC 500 is considered a mass layoff.
In order to collect unemployment, it must be a lump sum. If you get it in stretched out payments you may not qualify for unemployment.
 
Last edited:

observer

Well-Known Member
Moderator
80 people at perhaps 30k per person including taxes and benefits, that will save them 2.4mil less whatever it costs to operate in the Philippines. 2 mil a YEAR (500K a quarter) will go a long way towards closing their deficit of 1.1 bil a quarter.

Not to worry, Uber copter will swoop in (see what I did there) and start generating profits for them. I'm sure people will rush to use it after Kobe's unfortunate accident.
30K is a conservative number. Just hourly (13 bux an hour) and taxes is around 36K.

That doesn't include benefits.

They also save on the building lease and utilities.
 
Top