Hi fish,
Actually, short of an employment contract with your employer denying it the right to rehire/replace, sadly, it can do so. Just as an employee can terminate the employment relationship/quit for a better financial result elsewhere, so to can the employer - it is a 'mutual' right. Thus, it could lay off the more expensive employees to save money and then hire new employees willing to take a lower pay. The job may or may not be slightly different. But in this "at will" employment system in DC, the employer can do this.
I know this is more difficult for the employee than the employer, particularly in this economy, but employers lobby their politicians and the employees generally don't have the time or money to do so. I wish it were different.
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