Google firings signal pushback against employee activism, Noncompete ban could increase overtime pay

Plus, Spotify CEO reacts to the reality of layoffs.

Greetings, comms pros! Let’s take a look at a few news stories from last week and see what we can learn from them.

1 . Google CEO says work is not the place to ’fight over politics’ after firings

We’ve written a lot here at Ragan about employees bringing their full selves to work. But does that include political angles and discussion? According to Google CEO Sundar Pichai, it doesn’t. So much so that the company fired employees who protested the company’s cloud deal with Israel due to the war in the Middle East, and Pichai wrote in a blog post that work wasn’t the place to debate these issues.

Although Pichai didn’t specifically mention the protests or the Israel–Hamas war, he concluded that the $1.92 trillion company “is a business, and not a place to act in a way that disrupts coworkers or makes them feel unsafe, to attempt to use the company as a personal platform.”

“We have a duty to be an objective and trusted provider of information that serves all of our users globally,” Pichai said

“When we come to work, our goal is to organize the world’s information and make it universally accessible and useful. That supersedes everything else and I expect us to act with a focus that reflects that.”

We live in an era of employee activism — that’s probably inescapable for now. But leaders still have ways to right the ship and engage employees. Recognition of the diversity of opinions that make up the workplace is a great place to start. Leaders must also be transparent about what is and isn’t acceptable to bring into the workplace. And if there is a conflict it can’t be left to fester — it needs to be addressed promptly before it spins out of control.

Employee activism is here to stay, and that’s not a bad thing. But leaders need to approach it effectively if they want to preserve the organizational cultures.

2. New FTC rules on noncompetes could greatly impact overtime pay

The Federal Trade Commission unveiled new rules that struck down many employee noncompete clauses earlier this week. In another move from the government, a new rule states that millions of employees could be eligible for overtime pay. The Department of Labor stated that certain employees that make less than $43,888 a year will be eligible for time and a half pay after 40 hours per week. That cap will rise to $58,656 in 2025, and teachers, doctors and lawyers are ineligible.

According to the Associated Press:

Predictably, groups that represent companies have lined up against the new rule. Conversely, worker groups are applauding it as a necessary and long-overdue change.

The National Retail Federation argued that the new rules “curtail retailers’ ability to offer the most flexible, generous and tailored benefits packages to lower-level exempt employees across the industry.”

It also asserted that the new rules don’t give employers adequate time to make the changes needed. And it complained that the inclusion of automatic increases “exceeds the Department’s legal authority and oversteps longstanding Fair Labor Standards Act and Administrative Procedure Act principles.”

On the social media site X, the AFL-CIO labor organization said the rules will “restore and extend overtime protections for hard-working Americans.”

This is undoubtedly great news for the employees who qualify. On the flip side, employers should also consider how this move might require a rethink of benefits in order to protect  recruitment and retention efforts. When employees are treated well and taken care of financially, they’re more likely to stay in a role. The elimination of noncompete clauses and the introduction of overtime pay for millions creates a scene in which employees have more agency over their own work, which is always a good thing.

3. Spotify CEO Daniel Ek laments the impacts of the company’s layoffs

Remember back in December when Spotify laid off a bunch of employees and CEO Daniel Ek had some pretty insightful and empathetic comments about it? Well, Ek is in the news again, this time lamenting the impact that layoffs had on his organization.

According to The Street:

“Another significant challenge was the impact of our December workforce reduction,” said Ek during the call. “Although there’s no question that it was the right strategic decision, it did disrupt our day-to-day operations more than we anticipated. It took us some time to find our footing, but more than four months into this transition, I think we’re back on track.”

Ek’s willingness to admit that the layoffs were both a challenge and the right choice is a refreshing display of transparency from top brass. In the face of tough times, leaders who act and communicate effectively are much more likely to keep the organization stable. While no one likes to see a layoff, it’s nice to see a CEO who handles these unfortunate events in such an open and honest fashion.

4. How about some good news?

Have a great weekend comms all-stars!

Sean Devlin is an editor at Ragan Communications. In his spare time he enjoys Philly sports, a good pint and ’90s trivia night.

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