Layoffs are not inherently illegal. Both employers and employees understand that they are a potential outcome. Many businesses simply need to reduce their workforce to increase profitability or efficiency, and layoffs are the solution they choose.
That being said, it is possible for a layoff to violate employees’ rights. Below are tips to that can help evaluate whether a business carried out layoffs legally and in a nondiscriminatory manner.
Provide proper advance notice
In many cases, employers are required to provide advance notice to employees that a layoff is coming. This is covered under the New York State Worker Adjustment and Retraining Notification (WARN) Act.
For example, if a business has 50 or more full-time employees and 25 or more of them will be affected by the layoff, advance notice is required. The same applies to mass layoffs at larger companies where at least 250 employees will lose their jobs. In many cases, employees must receive a 90-day notice. This rule also applies to certain relocations, closings, major reductions in hours and general mass layoffs.
Ensure layoffs impact all groups equally
Employers must ensure that no specific group or category of employees is disproportionately affected by the layoffs, as this could be viewed as discrimination. Layoffs should impact all groups in a roughly equal manner.
For instance, if a business cuts 50% of its workforce but lays off 100% of its female employees, this could constitute gender discrimination. This doesn’t mean female employees are excluded from layoffs; it simply means that layoffs should affect both male and female workers relatively equally. The same principle applies to workers in other protected classes, such as religion, disability, age, national origin or race.
It is important for both employers and employees to understand how these rules work and what legal steps they can take during the layoff process.
