Mass Layoff Laws And Related Questions

It is difficult for an employee to deal with mass layoffs if one is a part of it

. An employee should be aware of things that he/she may be entitled to in the event of a mass layoff. Below are a few questions that have been answered regarding mass layoffs:

A company in California laid off employees in mass and provided its employees a 60-day WARN notice. In order for the employees to be eligible for the bonus that was due in two months time, the company stated that the employees should be employed at that time. Employees were aware that this was a part of the company policy. Employees had technically earned their bonus. Hence, would it be lawful for a company to do this?

The scenario mentioned above is not governed by Federal law and would need to be dealt as per State laws. A companys bonus policy is governed by the employer in the State of California. Terms of when the bonus would be paid or the qualification criterion to earn bonus are decided by the employer. Therefore, it is not illegal for the employer to have said what has been stated above.

An employee may want to review a copy of the company guidelines to verify the terms regarding bonus pay. After reviewing the company policy if one feels that the policy may be interpreted in different ways; then one may check if the bonus can be got as earned wages.

An employee has been told that he/she would be laid off as a part of a mass layoff. This employee has also been told that he/she would get a good severance package. However, the company does not want the employee to work for another company for a minimum of 60 days and wants this employee to sign a contract to this effect. Is it lawful for the company to ask the employee not to work for 60 days?

The company may not be able to enforce this rule. Further, what the company is trying to achieve by asking the employees not to work for 60 days is hard to decipher. One may consult an employment lawyer regarding this issue.

Is it required that a company with a head count of over 2000 employees give notice of mass layoff? Further, should they provide insurance coverage after the layoff date?

If a company wants to lay off 50 employees in a period of 60 days; then they are required to provide a 60 day notice. If the 60 day notice is not given; then employees would need to be given 60 days of pay and any other benefits that an employee would have received in the 60 day notice period.

The higher management has been provided additional months of severance as compared to the middle management as a part of the mass layoff that the company has done. Can an employee who is 40 years of age get extra benefits added to his/her severance pay?

If one has evidence to show that the layoff is targeting people of a certain age group; then one may file a class action law suit for breach of federal age discrimination law. This may be advantageous for the employee and may even avert the employee from being laid off.

In ones best interest one should consult an employment lawyer who may be able to probably assist in a large settlement.

Terms for mass layoff vary depending on the size of the company, state laws, etc. If one gets terminated as a part of a mass layoff and need clarity regarding this; one may ask an employment lawyer to answer any legal questions one may have.

by: MeghanJones

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