Most workers lose their jobs in one of two ways. Some professionals face targeted terminations. Many times, these terminations are for cause. Employers allege poor job performance or rule violations to justify the elimination of a specific professional’s position with the company.
Occasionally, workers lose their jobs as part of a mass staffing reduction. The company needs to restructure, eliminate redundant positions and limit operating costs. Terminating multiple employees at once can help a struggling organization become more profitable.
However, sometimes layoffs and other mass firings lead to wrongful termination allegations. When is a layoff a form of wrongful termination?
When the company discriminates
The factors considered when deciding who keeps their job and who exits the company could include seniority or job performance. Sometimes, businesses eliminate entire departments or shifts. Other times, they pick and choose employees to terminate.
In a selective layoff scenario, companies should use objective facts, not personal characteristics, to guide decision-making. The organization should take care to ensure that specific groups of workers are not at higher risk than others because of their protected characteristics.
If all of the workers over 50 at a company lose their jobs or if one racial group has disproportionate representation in the pool of terminated people, there may be a credible reason to claim that discrimination occurred. Layoffs could also constitute wrongful termination if the company uses them to retaliate against workers for unionizing or otherwise making use of their legal protections.
Filing a wrongful termination lawsuit after a layoff could provide workers with compensation that could help them support themselves and their family members until they find new work. Employees who lost their jobs in what seems like an unfair layoff scenario may need help determining if their termination was potentially wrongful.
