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Tina, Attorney
Category: California Employment Law
Satisfied Customers: 33167
Experience:  JD, 17 years experience & recognized by ABA for excellence in employment law.
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I need to reduce the overhead of my company. I have a total

Resolved Question:

I need to reduce the overhead of my company. I have a total of 12 employees. One employee has been with the company six years as office suuport and works 25-30 hrs a week. The other employee has been with the company for 10 years in sales. We can no longer support the salary structure and will redistribute the accounts with in the company. Both employees are over 50 yrs old. How would I classfiy the ending of their employment with the company. I plan on offering a four week severence package to both,
Submitted: 6 years ago.
Category: California Employment Law
Expert:  Tina replied 6 years ago.
Thank you for contacting

This would typically involve a layoff due to restructuring. The employees would be eligible for unemployment benefits since they are being laid off through no fault of their own.

There is no need to address a potential age discrimination suit in this situation typically since you have fewer than 20 employees, so age discrimination statutes would not apply to your company.

Good luck and take care.



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