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JBaxLaw
JBaxLaw, Attorney
Category: Business Law
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Experience:  Experienced in business formation and licensing issues
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When the bottom dropped out of the dot com sector, management

Customer Question

When the bottom dropped out of the dot com sector, management of an internet company responded with a reduction in force, ordering each department to cut its payroll costs by 35%. The sales department responded by expanding the territories of its salesmen and laying off two of its most senior employees, both of them males over the age of 40. by eliminating those two positions, the department was able to make its reduction quota, because none of the remaining salesmen are over the age of 30 nor have any of them been with the company more than two years. What's more, last year, while business was still good, one of the senior salesmen had a heart attack and was on long-term disability for six months. By laying him off, the company averts a large increase in group health and disability, both of which are fully paid for by the company.

Do you see any trouble brewing for the employer?
How can both sides justify their case?
Submitted: 1 year ago.
Category: Business Law
Expert:  JBaxLaw replied 1 year ago.
Hello,

I am a professional here to assist you. I appreciate your use of this service.

Are you asking if terminated employees in such a situation have recourse?

Thank you
Customer: replied 1 year ago.

Yes and also because they are males over 40 can they sue the company for discrimination? How can they and the company justify their case?


 


Thanks

Expert:  JBaxLaw replied 1 year ago.
A company is not permitted to single out employees 40 or over for adverse employment action. When they do the employees may file a complaint with the US Equal Employment Opportunity Commission or EEOC. This is a prerequisite to the employees pursuing a civil suit. The complaint may be filed at:

http://www.eeoc.gov/employees/charge.cfm

A company is not permitted to single out older employees to save insurance or retirement costs. This does not excuse employment discrimination based on age.

Please follow-up with me as needed. I hope you will take a moment to leave a positive rating for my efforts here. Please do not hesitate to follow-up with me if you cannot leave a positive service rating. Your satisfaction is my goal. I rely on these service ratings. I appreciate it.

Thank you
Customer: replied 1 year ago.

What other legal actions can be taken by employees to employer in this case? What laws are the company in breach of? How can the employees defend themselves in a lawsuit?

Expert:  JBaxLaw replied 1 year ago.
Without a union or other contractual employment relationship, employment is presumed to be at will under the law. In at will employment, an employer may terminate at will employees with no cause at anytime. One of the limited exceptions to this is employment discrimination. Employers are free to termination at will employees generally speaking. I am unsure what other recourse you would be asking about, but please respond if there is some aspect you want more information about.

Please take a moment to leave a positive rating if you would. I would appreciate it.

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