Layoffs are an unfortunate reality in today’s workplace, whether due to economic downturns, company restructuring, or other business needs. For employees, being laid off can be a stressful and uncertain experience. However, knowing your rights during a layoff can help you navigate this difficult situation with more confidence and ensure that you receive fair treatment and the benefits you’re entitled to.
In this article, we will explore your legal rights during layoffs, the protections available to you, and the steps you can take if you feel your rights have been violated.
1. Notice Requirements Under the WARN Act
In many cases, employers are required to give advance notice of layoffs. The Worker Adjustment and Retraining Notification (WARN) Act is a federal law that mandates certain employers to provide 60 days’ notice of mass layoffs or plant closings. This law applies to employers with 100 or more full-time employees and applies when:
- 50 or more employees at a single site are laid off,
- A plant or facility is being shut down, or
- A significant number of employees are affected by layoffs.
If your employer fails to provide the required notice under the WARN Act, you may be entitled to compensation equivalent to 60 days’ pay and benefits. Some states have additional WARN-like laws that may offer greater protections, so it’s important to research both federal and state-level requirements.
2. Severance Pay and Benefits
While there is no federal law requiring employers to provide severance pay, many companies offer severance packages as part of their layoff process. Severance pay is typically offered in exchange for the employee waiving their right to sue the employer, so it’s essential to carefully review any severance agreements before signing.
Some important aspects to consider when reviewing a severance package include:
- Amount of Severance Pay: The amount of severance typically depends on factors such as your length of service with the company, your position, and company policies.
- Continuation of Health Benefits: Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), you may have the option to continue your health insurance coverage after being laid off. In most cases, COBRA allows you to retain your health insurance for up to 18 months, though you will need to pay the full premium.
- Payout of Accrued Vacation Days: Many states require employers to pay out accrued vacation or paid time off (PTO) upon termination of employment. Be sure to check your state’s laws and your company’s policies to determine if you are entitled to this payout.
Before agreeing to any severance terms, consider consulting with an employment lawyer to ensure the offer is fair and that you are not giving up any important rights.
3. Unemployment Benefits
Laid-off employees are generally eligible for unemployment benefits, which provide temporary financial assistance while you search for new employment. The amount and duration of unemployment benefits vary by state, but they typically provide a percentage of your previous earnings for a limited period of time.
To apply for unemployment benefits, you must file a claim with your state’s unemployment office. It’s important to do this as soon as possible after being laid off, as there may be a waiting period before benefits begin. Additionally, you may be required to actively search for new employment while receiving unemployment benefits.
4. Discrimination During Layoffs
Layoffs must be conducted fairly and cannot be used as a pretext for discrimination. If you believe that your employer targeted you for a layoff due to your race, gender, age, disability, or other protected characteristics, you may have grounds for a discrimination claim.
The federal laws that protect employees from discrimination during layoffs include:
- Title VII of the Civil Rights Act of 1964 (prohibits discrimination based on race, color, religion, sex, and national origin),
- The Age Discrimination in Employment Act (ADEA) (protects employees aged 40 and older),
- Americans with Disabilities Act (ADA) (prohibits discrimination based on disability).
If you suspect that discrimination played a role in your layoff, it’s important to gather evidence and consult with an employment attorney to discuss your legal options.
5. Rights Under Collective Bargaining Agreements
If you are a member of a union, your layoff rights may be governed by a collective bargaining agreement (CBA). CBAs often include provisions that protect employees from layoffs or provide specific procedures for how layoffs must be conducted.
In some cases, union members may have “bumping rights,” which allow more senior employees to retain their jobs by “bumping” less senior employees out of their positions. Review your CBA and speak with your union representative to understand your rights under the agreement.
6. What to Do If Your Rights Are Violated
If you believe that your rights have been violated during a layoff—whether due to improper notice, lack of severance pay, discrimination, or violation of union agreements—there are steps you can take to protect yourself:
- Document Everything: Keep detailed records of your layoff, including any communications with your employer, severance agreements, and other relevant documentation.
- File a Complaint with a Government Agency: If your employer violated the WARN Act or engaged in discriminatory practices, you can file a complaint with the U.S. Department of Labor (DOL) or the Equal Employment Opportunity Commission (EEOC).
- Consult an Employment Attorney: If you’re unsure of your rights or need legal guidance, consider reaching out to an attorney who specializes in employment law. An experienced attorney can help you understand your options and take appropriate action to protect your rights.
If you believe your layoff was unfair or violated labor laws, you can contact HKM employment lawyers for legal assistance and advice. Their team of experts can guide you through the legal process and help you seek the compensation or remedies you deserve.
Facing a layoff can be overwhelming, but knowing your rights can help you navigate the process with more confidence. From receiving proper notice under the WARN Act to claiming unemployment benefits and ensuring that your layoff was free from discrimination, it’s essential to understand the protections available to you. If you encounter issues or believe your rights have been violated, don’t hesitate to seek legal advice to ensure that you are treated fairly during this difficult time.
