SaaStr CEO Advocates Email Monitoring for Departing Staff, Raising Legal and Ethical Questions

Jason Lemkin, CEO of SaaStr, has recently advised companies to monitor the emails of employees suspected of leaving, a stance he publicly shared and elaborated on in a blog post titled "When It Looks Like Someone May Leave, You Have to Start Reading Their Emails." The recommendation stems from concerns over potential negative communications with customers by disengaged, departing staff.

Lemkin recounted an incident involving a sales leader at a SaaStr Fund portfolio company who, upon leaving, allegedly "said just awful things about the company on the way out to our customers." He noted that this type of behavior is becoming increasingly common as employees "sour" on their way out, leading him to conclude that such monitoring is a necessary protective measure for businesses.

In the United States, employee email monitoring is generally permissible, particularly on company-owned devices and networks, provided there is a legitimate business reason. Federal laws, such as the Electronic Communications Privacy Act (ECPA) and the Stored Communications Act (SCA), allow employers to access work-related data. However, state laws vary, with some, like Connecticut and Delaware, requiring employers to notify employees of monitoring practices.

Despite its general legality, the practice of monitoring employee communications raises significant ethical concerns regarding privacy and trust. Transparency is crucial, with legal experts and HR professionals often recommending clear, documented policies that employees acknowledge. Covert monitoring can erode employee morale, foster distrust, and potentially lead to legal challenges if not conducted within established legal frameworks and communicated policies.