In a leaked memo, Shopify CEO Tobi Lütke put limits on employees having side hustles, saying Shopify requires 'unshared attention'
In a leaked memo, Shopify CEO Tobi Lütke put limits on employees having side hustles, saying Shopify requires 'unshared attention'
Shopify CEO Tobi Lütke discourages employees from side hustles in company memo, saying their jobs require their undivided attention.
In a leaked memo, Shopify CEO Tobi Lütke put limits on employees having side hustles, saying Shopify requires 'unshared attention'::Shopify CEO Tobi Lütke discourages employees from side hustles in company memo, saying their jobs require their undivided attention.
“I’m excited to share that Tobias “Tobi” Lütke, CEO and founder of Shopify, will join Coinbase’s Board of Directors.”, CEO Coinbase, Brian Armstrong, 31st Jan 2022.
Hmm. Sounds an awful lot like a side hustle.
Narrator: It was.
I’ve often wondered about this kind of thing. Are board members paid? How much time does it take to be one? It always seems like they have people on the board who are only tangentially connected to the company. Why is that?
Not terribly much time, by the looks of it. For example, look at the list of boards Disney CEO Bob Iger sits on:
https://www.wsj.com/market-data/quotes/DIS/company-people
Publicly traded companies should have their board compensation made public. Iger sits on a lot of philinthropic organizations; I think 501c3's will have that reported to the IRS. But he probably has a day long meeting for each once or twice a year.
Edit: here's Bloomberg Philinthropic's IRS filling (one of the boards Iger sits on). $10.9k per board member. https://projects.propublica.org/nonprofits/organizations/205602483
For public companies you get elected by the share holders. If you own enough stock you can pretty much elect yourself. But otherwise it's a game of trading favors... cause a lot of stock is owned by large stock funds and what not, so you have sort of power brokers deciding on a large quantity of votes that they don't really own...
What an employee does in their private time is none of a company's business. They can fuck off tbh.
*Unless the employee is competing directly with the company
(I originally read into nonexistent context from the headline and am dum-dum.)
Fuck that noise.
In tech, my brain is my brain. Your employment is a license to use my brain for 8 hours a day. If I choose to get employed elsewhere, I still have my brain and it's being licensed there too. If you want to license my brain 24/7, then we're upping the cost significantly and you better fucking put it in the terms.
Thing is I’m all for a company dumping an employee who engages in hate speech, for example, in their spare time. It’s at-will employment so anything goes technically.
The problem here is that the guy is targeting something totally inappropriate: the concept of personal time itself. He’s saying in thinly coded language that he expects people to be working all the time. He wants to own their spare time. There’s nothing to do about this except for his staff to dump him and his company and quit their jobs. It’s at-will employment so anything goes.
The capitalist mindset is basically slave holding with extra steps. They think they own you, but couch it in corporate-speak, using emotive words like ‘loyalty’ and ‘efficiency’. That way, instead of sounding like the narcissistic leeches they are, the onus is on the employee to not break the bonds of ‘trust’ bestowed upon them by their capitalist overlords.
I felt this so hard, when I started getting sick, I quit my job proactively rather than inflict the harm my tardiness and less-than-peak performance might do to the company. No severance, no safety net, and now I’m literally destitute after being a top performer in my industry for years. It works.
He should probably get the fuck off Coinbase's board of directors then.
Perfect comeback. Fucking hypocritical piece of shit, this dude.
With a slimy bio on the coinbase page too: "Tobi Lütke has served as a member of our board of directors since February 2022. Since September 2004, Mr. Lütke has served as co-founder and director of Shopify, Inc., an e-commerce company, and, since April 2008, has served as its Chief Executive Officer."
Source: https://investor.coinbase.com/governance/board-of-directors/default.aspx
I like your style.
"Our company is like a professional sports team, except we are definitely not going to pay you like actual professional sports players." - a guy who makes way too much money
Looks at all the sponsorship work that professional athletes do outside of playing their sport...
I had a boss who, during a meeting about a raise for me, said "you care more about what you make than I do", which prompted me to up my asked-for salary by 50% on the spot - and he agreed to pay it. This guy was very much like a pro team owner, albeit Ted Stepien.
I worked for as a software engineer for a company that I did interviews for. We were told that “pet projects” were a red flag unless they were a current college student. They showed a lack of commitment to their current employer. Basically, there’s no reason for them to have a side project, they should be working more for their current boss.
I left that company shortly after.
One of my first companies put a clause in to say that they owned the code you wrote in your spare time. I peaced out too.
I had one tried that, I crossed it out before signing.. it's total BS.
One of the companies I worked for put into their employment agreement language that stated they owned all the code I had written before starting work for them. It was the most hilarious overreach I've ever seen in an employment agreement - but then companies can put literally anything they want into the agreements, and they aren't worth shit anyway.
I told them this was utterly ridiculous and edited the agreement to remove this and some other nonsense before signing it, and they hired me anyway.
If they don't recognize that it's a stave on burnout and a way to learn and expand one's skillset, I don't want to work with them either.
"I don't have any side projects so there's no reason you shouldn't pay me a living wage"
Shit in my field we are pressured into having a side hussle. Sparks creativity and innovation while being free to those who pay us.
We were told that “pet projects” were a red flag unless they were a current college student.
Damn, I had seven jobs as a programmer over a 23-year period, and every single one I got because of my "side hustle" writing and releasing music composition software.
My employer is the same. I was almost fired for attending a (unpaid!) hackathon during a weekend. A colleague was fired for doing volunteer work in weekends.
Yes, I'm looking for a new job.
Your employer deserves to have sugar poured into his gas tank.
That's so wild. A smart company would be begging their employees to learn how to solve new problems on the weekend for fun. Intellectually curious people are exactly who you want.
The only way this would make sense would be if you signed an NDA or something that would prevent you from participating in the specific hackathon, because secrets.
No NDA, completely different sector. Stated reason was the same as in the article: "we need your full undivided attention", followed by some bullshit that they were "concerned" I would be overworking myself. Maybe they should have reduced the work load at work if they were truly concerned, as I was pulling 60+ hour work weeks at the time.
My company will actually donate money equivalent to your hours volunteered (albeit at some lower wage of like $10/hr) when volunteering with any one of hundreds of charities and they have an application to submit new charities if yours isn't listed.
Come on dude, you know that they regularly will do these jobs within the paid hours of their main employment
Lesson learned: Feed your boss shit and do what you want on your own time.
sounds like a good riddance type of situation
Then pay enough that they don't need a side hustle.
Shopify has been known to pay good rates for developers.
If people have more energy and want to do more work for more money, offer them more money for more work or let them do other work. It's simple.
I can’t stand the normalisation of the term “side hustle” when it’s just a capitalist weasel word for having a second job.
I disagree. A second job is a "second job".
A side hustle is something you own.
I make apps on the side. I have no boss, nobody to report to. Some of them, I've made some extra loot.
Can you make me an app? I have a killer idea. Its uber-eats, but the driver has to come inside and eat dinner with you when you're lonely.
While that definition sounds ideal, I think most people with side hustles are still working for someone, just with flexible hours. DoorDash, Uber, transcription, etc.
Just wanted to add that part of this may be a culture thing. Here in Germany, you are required to get your employers permission to get a second job or the like. Many of you might instinctively find this corporate BS, but in reality it's mainly worker's protection. No employee is allowed to work over 60 (I think) hours in a week. To make the companies stick to that, the government will come for them if any worker exceeds this number. Your employer has the responsibility to not let you exceed that, even across multiple jobs. That's why you have to get permission for side hustles. There are other (not so pro worker) reasons for this, but that would go too far. Suffice to say that Lütke is German and this might be some thing he brought from Germany.
I feel like that's some pro-worker framing, but this could just as easily be framed in an anti-worker fashion...
It depends on the societal framework. That would be anti-worker in the U.S. because you’d be sentencing some people to death, since the U.S. doesn’t have guaranteed livable wages or livable safety nets for those out of work. Given the assumption that you can make ends meet, mandating a cap on the hours spent working for someone else’s benefit and missing out on your own life is pro-human.
Is there some mechanism that ensures that a person is paid well enough to support themself and possibly a dependent on <= 60 hrs/week? In the US the federal minimum wage, which was last raised 14 years ago, is insufficient for the cost of living in some areas.
There is a minimum wage that's not too shabby (not good, make no mistake, but will prevent you from going hungry) and if a person is working but under the existential minimum, the government will basically put them on unemployment benefits and top up their salary to bring them up to said minimum. The system has faults, yes, and most people will do everything on their power to not be dependent on the government for that, but it will keep (cheap) food in the fridge.
Yeah, in a lot of ways I feel like this has the same vibe as "CEO believes that children should not be allowed to work". Perhaps somewhere out there is a kid that would like more money, and so denying them opportunities sounds very anti-freedom - but it would moreover be a flag about something broken in society and their ability to take care of themselves.
Wait. If I choose to work multiple jobs and I choose to work 65 hrs a week because (reasons) that's against the law and it's somehow the employer's burden to stop that?
Edit: I say this as a person who values his time and work life balance. Maybe when I was in my 20s and had more energy then sense of have done that.
Exactly, yes. The same goes for working more than 10hrs in a single day.
Edit: that does not apply to self-employed people. So if you work 90 hrs in your own company, that's fine.
Here in Germany, you are required to get your employers permission to get a second job or the like
I'd have a real big problem with that. People are cool with that in Germany?
Yes, people here are absolutely fine with that. You probably come from a very different world culture-wise. First of all, second jobs are not the norm here. It's rather rare, actually and most second jobs are hobbies you take money for, like photography or the like. Your employer will almost certainly not even bother to ask any further.
Secondly: your employer cannot object just because they don't like your face. There are set criteria. They will object if your second job would conflict directly with your first job, that'd be if you work at a competitor, would have work hours in your second job that conflict with those of your first job or would work too much all together. That's it.
Shopify's user base is probably like 75% side hustles, right? A significant portion of which are his own employees?
So I heard lots of frustration in comments around the concept but little commentary on the legality of it. Not a lawyer but do have extensive experience in HR and employment law:
Companies can put anything they want in a policy. That policy may or may not be legal. A policy that is not legal may open up lawsuit opportunities against the employer, but because most violated employees simply complain on message boards on the Internet instead of learning their rights, the policies and violations continue.
In this case, it has been well established that companies cannot limit your employment opportunities outside of work, unless you have a contract that specifically includes it AND you are provided consideration (payment or something of value in a legal contract) for this concession. You can be legally and simply terminated if you are doing non-company work on a company device, if your performance is not meeting standards, or if there are any conflicts between your employer and your other jobs, hobbies, etc.
There have been a lot of cases and laws in the last 5 years massively limiting the scope (because employers will always push any advantage as far as they can until they are regulated, legislated or outlawed) of "non-compete" clauses in job offers and policies. 10 years ago every employer was throwing these into employment contracts, some employees called them on their bullshit and now you don't see them as often--but there are definitely still companies (especially small or new) who don't have anyone who knows what is legal in this area and just make shit up. The only real holding power a non-compete has is if you have mission-critical information or trade secrets and again they must then receive consideration/payment for this concession of their ability to earn income elsewhere --and 99.9% of employees outside of C-suite don't.
If you're interested in learning more about employment law, trends, or have questions, check out my new community I created last week "Ask HR":
Most non-competes I've seen in the wild (when I was an HR, as well as in operations) have been pretty specific about the type of baned competing work as well. It's less often you can't work for our direct competition if offered a job and more you can't start a company as direct competition and you can try to steal our employees for X amount of time. It's rarely (because it likely unenforceable legally) you can't do any other work.
Yes, this makes sense, and again I'll emphasize anyone can put in a policy "oh you can't start a competing company" but there is a damn high threshold 99.9% of employees don't meet for this to be enforceable. It would be enforceable ina situation where you're very high up with strategic knowledge or information about the company or market that isn't public and you leave the company to try to capitalize on that information using the information you gained during your time at the company. Most people can agree that would be abuse of the company, but even then it can be challenging to prove in some situations.
Long of the short, most of these are unenforceable too unless you're in certain, strategic, leadership or mission critical areas of an org. The smaller the org the more potential you could actually be part of this group but it's on the employer to prove it, and again, you need to be compensated for it. They want to say you can't work for or start a competitor for a year? Cool, an enforceable agreement would be they pay you a year's wages on termination. If you aren't in that kind of a situation, it's people making stuff up and hoping to scare the labor market.
I signed a non-compete when starting a new job after researching and finding out it wasn’t enforceable in my state (they’re illegal).
Yep. Largely unenforceable in all of Canada, and shopify is Canadian so they should know better.
A lot of it depends on where you live and how high up you are in the company too. If you're a VP or a director, your expectations and legal burdens and considerations are often different from Bob Joe programmer or Larry the phone guy.
For example, in my province, non-competes were banned a couple years ago. I started work with an employer a year prior to that ban, and they had a stealth non-compete in my contract, but basically the rest of the contract was unenforceable anyways.
As always, it's worth learning your rights and seeking legal advice prior to signing any legal agreements like contracts.
"how they can disclose side projects" - none of your business, really.
He looks like he’s still mad that the Hobbitses stole his Precious in the photo there.
He looks like his rap album was never picked up by a label and still only has 15 listens on Spotify.
Do they pay well?
Former employee from the layoffs in May 23. In my experience yes. Lütkes words here are insane as are many of the other recent headlines from the company, but I can say that the severance packages were extremely generous, in my opinion.
If Shopify wants employees full attention I sure hope they're paying for it too.
Clearly they need to put even more effort into it because Shopify is god awful.
This is the best summary I could come up with:
Shopify CEO Tobi Lütke wrote a company-wide memo Wednesday discouraging employees from having side hustles.
"This surprises me because it directly contradicts the countless times I've said Shopify is like a professional sports team that requires our unshared attention."
Even the company's president, Harley Finkelstein, has had his own Shopify store, Firebelly Tea, which he co-founded with the DavidsTea creator David Segal in 2021.
"Occasional side hustles like teaching a yoga class on the weekend or coaching your kid's soccer team once or twice a week aren't what I'm talking about.
And open source contributions are welcome, but give yourself an out - don't commit to big maintenance burden or letting them become a substantial workload," he wrote.
Shopify General Counsel Jess Hertz responded to Lütke's post saying that all employees would receive an email with more details on how they can disclose side projects or other outside work.
The original article contains 528 words, the summary contains 149 words. Saved 72%. I'm a bot and I'm open source!
Don't athletes on pro sports teams generally get paid more than their managers?