Data leak reveals layoff plans too soon

October 20, 2008 by
Filed under: Document retention, In this week's e-newsletter, Latest News & Views, Payroll software, Security and law 

Here’s an example of the danger companies face when technology isn’t handled correctly.

At least 50 employees at satellite radio provider Sirius XM recently found out they’re being laid off — before the company told them.

How did it happen? An employee logged on to the company’s payroll system and saw a scheduled termination date next to his name.

Word got around, of course, and more employees checked on their status before the company blocked access to the system.

The list of employees who got advance notice of their fate included several popular on-air personalities.

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Comments

7 Comments on Data leak reveals layoff plans too soon

  1. Barbara on Tue, 21st Oct 2008 2:10 pm

    2. What I want to know, as a payroll admin, is anyone allowed access to the payroll system at Sirius XM???? Right up there with our customers personal information, our employee info and payroll system are locked down tight against anyone who is not the payroll admin, controller or sec/tres of the company.
    Sounds like they got more problems than just laying off people.

  2. Marie on Tue, 21st Oct 2008 3:21 pm

    3. Why were employees able to log on to payroll records in the first place. I thought that was proprietary information and should be blocked.

  3. Indy on Tue, 21st Oct 2008 3:37 pm

    4. In the article where it is refering to an employee loging onto the payroll system I believe it is probably refering to an employee self service system where an employee can log on and see their own information and make changes or adjustments to the basic things like address, taxes, direct deposit info. and request time off from work.

  4. VS on Tue, 21st Oct 2008 4:17 pm

    5. We have an employee self service system Indy wrote about. I know what happened at Sirius. The payroll/HR admin processed the lay offs and updated the HRIS/payroll file first thing in the morning in preparation for the lay offs later that day. They didn’t take into consideration that employees check on their personal information throughout the day. For this reason and others is why we did not grant our employees rights to not even view, much less make changes to their personal information.

  5. Kenda on Tue, 21st Oct 2008 4:54 pm

    6. I am an HR Administrator – no one can get into our payroll system except the CFO, the bookkeeper and me. Even changes such as direct deposit, address change or number of tax deductions can only be done by the three of us. I’d say Sirius has some serious security issues!

  6. Dee on Wed, 22nd Oct 2008 12:25 pm

    7. I agree with VS above about the type of system used. We are looking at eliminating the paper vouchers for our direct deposit individuals. It is a cost savings and allows more freedom for the associate to review pay information and get tax information. They have a login and password, so they are only able to see their information. I am sure this is the system that is referred to in the story. This reminds us individuals with electronic pay vouchers to wait to update the system until communication is complete.

  7. Peter on Thu, 13th Nov 2008 7:29 pm

    8. I think that this leak happened is great. Bosses already have too much power over workers. Leaking data is one way that the office hierarchy can be undermined.