A layoff is the termination of employees from their typical line of work. In many cases, layoffs are a temporary change, such as when a business is restructuring or downsizing.
A layoff will generally arise because of a lack of business or work. It may sometimes include an entire group of employees, for example, when a business removes an entire section of a production line.
In some cases, a layoff may be temporary. This means that the worker may be able to return to work with the business after some time.
However, a layoff may also be permanent to save money or to close a location. Other terms that may be used for layoffs include:
- Downsizing;
- Workforce Reduction;
- Simplification;
- Reduction in Force;
- Redeployment;
- Excess Reduction;
- Delayering; and
- Smartsizing.
Layoffs are common for many businesses. However, the business must ensure that the layoff does not violate its employee’s legal rights and does not involve wrongful termination.
A significant portion of state and local employment laws may govern layoff issues.
What Are Workforce Reductions?
A workforce reduction often causes a layoff. A workforce reduction is when a business seeks to reduce the number of workers that are working for them, in general, to reduce their overall expenses.
A layoff may also occur because of a closing at a factor or a place of business and not because of a loss of profits. Under the requirements of workforce reduction, a worker may still have rights to employment under their employment contract.
A workforce reduction can take a long period as employees go in or out of the company.
What Are Some Common Layoff Legal Disputes?
It is common for layoff legal disputes to arise when a layoff occurs suddenly or in a way that goes against the employee’s current employment contract. Other common legal disputes associated with layoffs may include, but are not limited to:
- Debates over company property;
- Disputes over employment benefits;
- Due wages;
- Terminations involving discrimination or harassment;
- Fraudulent or deceptive layoff; and
- Wrongful termination.
What if I Have a Legal Dispute Over Layoff Issues?
Legal disputes regarding layoffs will typically require the intervention of a government agency or an employment board. Any issues related to a layoff that occurred due to certain characteristics of an employee must be submitted to the Equal Employment Opportunity Commission, including:
- Race;
- Color;
- Religion;
- Sex;
- National origin;
- Age;
- Disability; or
- Genetic information.
Once an individual files a claim with an agency, that agency will investigate. They may be able to provide a legal remedy, for example, an award of damages or reinstating the individual to their previous position.
The individual may need to file a lawsuit if the agency cannot resolve the issue. An individual needs to keep any records, documents, and statements that may be connected to their claim for court records and evidence.
Can I Get Advice on How to File a Wrongful Termination Suit Through the EEOC?
Before filing a workplace lawsuit, an individual must first file a complaint with the EEOC. To file a federal EEOC complaint, an individual must follow certain steps, including:
- Contacting the EEOC counselor 45 days after the incident;
- Evaluating their eligibility, as the federal deadline for filing a claim is 180 days from the time the charge occurred;
- Completing the online assessment tool to determine whether EEOC has jurisdiction to take the claim;
- Finishing the EEOC intake questionnaire;
- Filing the EEOC complaint either in person or by mail;
- Answering any supplemental questions asked by EEOC after charges are filed;
- Once an individual files their complaint, the EEOC agency will do an investigation into their claim;
- If the agency was not able to resolve the dispute, an individual might be able to file a lawsuit by obtaining a Notice of Right to Sue from the EEOC; and
- Filing a lawsuit in court 60 days after filing the EEOC charge but no later than 90 days after the EEOC investigation was concluded.
Was the Layoff Illegal?
An employment lawyer can review the details of an individual’s layoff to determine if it is illegal. For example, if many of the employees selected for the layoff belong to the same legally protected group, such as individuals over 40, and the individual was in the protected group, they may have a claim.
In this case, the employer may have targeted the individual for an illegal reason, such as age discrimination. Even if the general layoff was lawful, the individual may have been illegally included in the laid-off group.
For example, if an individual’s position was not initially selected for a layoff but their supervisor put their name on the list after they complained of sexual harassment or hazardous working conditions. An attorney will ask individuals questions regarding their work history, execution, and more to determine whether their employer included them in a wrongful layoff to conceal an illegal termination.
A lawyer will also ask an individual questions to determine whether their employer fulfilled its responsibilities for a legal layoff. For instance, an employer must reimburse an employee with a final paycheck that includes all the wages they have made within the time mandated by state statute.
In addition, if the layoff was part of a plant closure or a mass layoff, the employer must give workers a 60-day notice.
What Are Your Legal Options?
An individual’s lawyer can explain all of the legal options that may be available to them. For example, their lawyer can identify resources:
- State or local agencies where the individual has to file complaints to maintain legal rights;
- A state labor department where an individual can pursue unpaid wages; or
- The state unemployment department so the individual can file for benefits.
An attorney can also explain what type of assistance they can offer. This may include helping an individual file claims at the property agencies, sending letters to employers seeking severance pay or the settlement of claims, or filing a lawsuit.
Good Advice From a Lawyer Can Help You Move On
An attorney may advise an individual that their only choice is to file for unemployment and move on. It is important to remember that sound legal advice is not always what is expected or what an individual wants to hear.
The attorney’s job is to tell their client what their legal choices are honestly. One of the main jobs of an attorney is to provide an objective and professional evaluation of their potential case.
A lawyer may not tell their client what they want to hear, but the individual should leave their meeting pleased that they have investigated your legal opportunities rather than just tolerate their fate.
What Is the Cost-Benefit Analysis?
One of the primary steps an individual should take before deciding how to move forward with a layoff dispute is to weigh the costs of taking legal action against the potential advantage of doing so. For example, suppose an individual’s attorney tells them that their layoff somehow violated the law.
In that case, their lawyer will also inform them that they may be able to recover monetary damages by suing their employer or attempting to settle their claim before litigation occurs.
Do I Need a Lawyer for Help With Layoff Legal Disputes?
If you believe you may have been laid off illegally or violated your contract, consulting with a wrongful dispute lawyer is important. Your attorney will advise you of your rights under employment laws and whether you likely have a claim.
Your attorney can assist you with filing any claims with government agencies. If the agency cannot resolve your dispute, your attorney will represent you whenever you appear in court.
