Thread regarding Wells Fargo & Co. layoffs

Legality of Location/Hub Strategy

Here is my thing with the location/hub strategy and the displacements that have and will occur.
Wells is an employment at will company which means they can do whatever they want within the limitations of law.
The location strategy falls within that gray area.
However, my arm chair legal opinion is that if it is used to displace people with medical accommodations (ADA disabilities only) or protected people for not being in a "strategic" location, it will blow up in the firm's face.
To my knowledge, there is no enterprise change management approved process, policy or procedure that deals with hubs and locations.
In addition, there have been no formal communication or documented performance plans to lay out these requirements and give employees options.
While legally that may not matter, from a reputation risk perspective, probably no bueno.
This will end up being a farce like the requirement to be vaccinated and Wells will have to pay out millions to those displaced under these ambiguous circumstances.
Feel free to respond with clearly defined requirements of this strategy that will survive in a court of law.

Official communication of requirements do not include:

  1. Job boards
  2. Town halls
  3. Power points
  4. Elitist requirements from Senior Executives

Point of clarification, some LOBs are probably executing this better than others but the weakest link still makes it a big WF problem.

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| 2875 views | | 14 replies (last December 16, 2023) | Reply
Post ID: @OP+1q49HMPv

14 replies (most recent on top)

None of the “logic” in OPs post holds.

If a company exits a location, it doesn’t matter if there’s someone (or many someones) with ADA disability. What matters is that the people with disabilities aren’t treated differently than those without a disability. So if everyone remote >40 miles from an office is displaced… no discrimination. If everyone working in a specific city is displaced… no discrimination.

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Post ID: @2nrs+1q49HMPv

There's likely no legal remedy here. Shart is destroying the domestic workforce and there's nothing anyone but the BOD can do about it. Breaking news: this is all the BODs idea, so no, they won't intervene.

There is no domestic location strategy other than Hudson Yards being the ivory tower of douche bags that it is. Everything else goes. I&P employees will do all the grunt work, often poorly. All of us get downsized.

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Post ID: @2ozx+1q49HMPv

Any Plaintiff would be saddled with the burden of proof. I don’t know of anyone who had accommodations who has been let go. They were all normies. Don’t confuse that with me claiming none have been let go. Just goes to prove a point that it just needs to be a mix of people then the claim of discrimination cannot be substantiated.

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Post ID: @fdl+1q49HMPv

The other component is how all job posts, that i've seen, require you to be in a hub, so job change, and job promotion opportunity is out the window. I've heard, mgrs are even being told they cannot promote within, if not in a hub location.

They could in theory remove job A, and hire for job B (same job different title), and only allow hub location people to apply, and now what do you do?

Sadly at the same time WF is hiring leadership from Chase and allowing them to live in non-hub locations. I guess that only applies to everyone else...

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Post ID: @nhc+1q49HMPv

Protections are for reasons and being let go because of Said reasons. When you lay off an entire group based on locations, not illegal. Reasonable accommodations for disabilities etc. Not a requirement and no legal ground to stand on. If the glove don't fit....

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Post ID: @riz+1q49HMPv

To @mlx+1q49HMPv

Very fair analysis. Though I do wonder about disparate impact. In theory, you are correct.

However, Charlie does not get the benefit of the doubt with me. I think back to his town hall, when he played stupid about the location strategy. If you need to play d-mb, it doesn't instill confidence everything is above board. And this could not be construed as NPI, by any stretch.

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Post ID: @xzi+1q49HMPv

The secret non hub promotion exceptions are a disparity. EEOC only applies within said location strategy.

Perhaps the impacted will join Sloan for the emotional distress claim as the surveys are a bust.

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Post ID: @ngt+1q49HMPv

They have been fined billions for consumer and employee abuses in last ten years. Do you think they are concerned about location strategy?!?? That's like a serial felon with 19 felony convictions getting misdemeanor for dui, they don't give AF!!!!!!

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Post ID: @spk+1q49HMPv

Location/Hub strategy is not new in corporate spheres. Other banks have previously executed on such strategies. Your armchair opinion is very debatable.

If a strategy is based on location and is based purely on financial and strategic planning, it should not impact protected classes to any further extent than it impacts non-protected classes. EG - if WF only offered employment to protected classes in certain locations today and a majority of all of those locations were eliminated, that might be grounds to pursue legal remedy. But - if WF was practicing the above - only offering protected classes employment at specfic locations - they would already be exposed to potential discriminatory litigation.

Perhaps I read the OP incorrectly - but it does read as though the potential litigation you suggest is related only to how it impacts said protected classes.

If it's meant to be more holistic, eg targeting specfic employees based on a discriminatory practice - that's not likely to happen. Eliminating higher cost or lower return locations is very much a legitimate business strategy.

In my experience having worked for a company who implemented such a strategy years ago, most employees were not offered relocation options, however some were - and those were usually very high performing employees. I know those who were the most negatively impact felt those choices were discriminatory but they would have had a very hard time taking that to court.

Corporate America stinks for the average employee. We are numbers in a spreadsheet and rarely anything more is considered. On the flip side - its rarely personal or discriminatory when these types of decisions are made.

(former legal strategist - and this is only an opinion based on very limited information)

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Post ID: @mlx+1q49HMPv

I don't think I'm privvy hence the "To my knowledge".

All I am saying is what happens in the dark usually comes to light.

With a company as polarizing as Wells, I would think we would overcommunicate and document these things.

If we don't, confusion and disarray commences which will eventually affect our positions due to increased fines, lack of asset expansion etc.

But I'm sure your privvy HR ivory tower is just fine...

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Post ID: @jww+1q49HMPv

"to my knowledge" is the key phrase there OP

What makes you think you are privvy to everything you're talking about?

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Post ID: @vfn+1q49HMPv

If the OC has faith in their management ilk to execute against the non-public strategy...good luck with that.

Just takes one sc--w up.

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Post ID: @jbi+1q49HMPv

I believe there is a change management approved process. It's just not public.

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Post ID: @txd+1q49HMPv

Nope. The impacted folks might get severance, but if y’all banking or a legal settlement … keep waiting.

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Post ID: @etd+1q49HMPv

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