TikTok Parent Doles Out Bonus Pay To Staffers As Deadline For U.S. Ban Approaches

TOPLINE

TikTok’s Beijing-based owner ByteDance is reportedly doling out half a month’s salary as a bonus to all its workers, even as the company engages in negotiations to divest the app’s U.S. arm before the September 15 deadline set by President Donald Trump’s executive order.

KEY FACTS

Citing an internal memo, which was confirmed by the company, Bloomberg reports that ByteDance will offer half a month’s salary as a bonus to its 60,000-plus global workforce hoping to calm them as the September 15 sale deadline set by Trump’s first executive order against the company approaches.

According to the memo, the cash bonus will be offered to all “eligible employees” adding that it will pay out the bonus along with September’s salary to any full-timer who has worked at least 26 days between July 1 and August 31, the report added.

The Trump administration’s crackdown on TikTok, which includes a ban on all transactions between the company and any U.S. entity, has raised concerns among the company’s American employees.

Patrick Ryan, a technical program manager at the video-sharing platform, has filed an injunction with a federal court in California seeking a halt on Trump’s August 6 order, noting that the order’s broad language may prevent the company from paying wages and salaries to its U.S. employees.

The injunction motion points out that Trump’s order banning all transactions between TikTok and U.S. entities directs the Commerce Department to “identify the transactions” subject to the order but allows it to wait till the day the order takes effect to announce the rules, keeping the company’s employees in the dark.

The motion contends that Trump’s ban is “an unlawful and unconstitutional abuse of executive power” that violates rights of due process guaranteed to TikTok employees by the Fifth Amendment.

Key Background

Last month, TikTok filed a suit challenging Trump’s executive order, stating that it had taken “extraordinary measures to protect the privacy and security of TikTok’s U.S. user data.” The company’s lawsuit also accused the executive order of violating the due process protections of the Fifth Amendment as it banned the app “with no notice or opportunity to be heard (whether before or after the fact.)” Trump has issued two executive orders against TikTok, one on August 6 which intends to block any U.S. based transactions with TikTok and its Chinese parent ByteDance 45-days after the order. A second-order was issued on August 14 that gave ByteDance 90 days to divest TikTok’s operations in the U.S. A joint bid by Microsoft and Walmart is competing with Oracle to acquire TikTok’s U.S. operations. However, negotiations for the planned sale have reportedly hit a roadblock after the Chinese government issued an order, late last month, restricting the export of artificial intelligence technologies including ‘personalized content recommendation’ tools like the one used by TikTok’s app. Late last month, TikTok CEO Kevin Mayer announced his exit from the company, just months after taking charge.

Further Reading

TikTok Owner Doles Out Bonuses to Assuage Beleaguered Staff (Bloomberg)

TikTok U.S. Employee Asks Federal Court To Block Ban, Blasts Trump ‘Spitting Match’ (Forbes)

Speak Your Mind

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Get in Touch

350FansLike
100FollowersFollow
281FollowersFollow
150FollowersFollow

Recommend for You

Oh hi there 👋
It’s nice to meet you.

Subscribe and receive our weekly newsletter packed with awesome articles that really matters to you!

We don’t spam! Read our privacy policy for more info.

You might also like

Chinese Real Estate Billionaire Scrambles To Raise Cash As...

Xu Jiayin, chairman of Guangzhou's Evergrande Real Estate Group, attends the...

Nikola’s $12 Billion Nasdaq Debut Is A Boost For...

Nikola's semi-trucks are powered by both hydrogen fuel cells...

Journalists Are Angry About Layoffs At The Atlantic, Owned...

Laurene Powell Jobs speaks onstage at the Committee to...

Health Canada To Start Real-time Review Of Pfizer-BioNTech COVID-19...

Health Canada will start a real-time review of Germany’s BioNTech SE and Pfizer Inc’s...