Dive Brief:
- As of Tuesday, WrkRiot, an online job board, is no longer operating, according to the New York Times. And it appears much of the damage described in the article revolves around HR-related management issues, mainly compensation.
- The Times reports that WrkRiot's former head of marketing posted a scathing article saying how the start-up paid employees "in cashier’s checks before delaying payment altogether." She also alleged company founder Isaac Choi forged wire transfer documents to as a way to fake outgoing salary payments.
- Penny Kim, the former marketing head, was fired in mid-August after she filed a wage claim, and now she has countered with retaliation complaint.
Dive Insight:
WrkRiot launched in June 2015 under the name 1For.One, it's goal being helping workers find a perfect job. After hiring recruiting and data science workers and another name change (JobSonic), the company finally became WrkRiot. Now, it's no longer online, the Times reports.
Choi told the Times that his Santa Clara, Calif.-based start-up was “like any company. If you want to talk start-ups, all start-ups have problems.” He called Kim "a disgruntled employee who was fired for cause" and that the accusations were “unfair to my guys."
While Silicon Valley start-ups deservedly receive a lot of credit for creating jobs and innovative products and services, there have been some serious stumbles, often in HR-related issues. Zenefits, the online employee benefits platform, has gone through some serious disruptions over the past year, so far surviving some shaky business practices and the departure of its founder. But in WrkRiot's case, the alleged non-payment of wages issue is pretty much the number one transgression in how not to manage in the workplace. Meantime, HR and recruiting leaders have one less job board to use.