There’s lots of different reasons an employee might be laid off. Sometimes, it doesn’t even have to do with an employee’s preformance. Getting laid off or fired can make you feel helpless or like you have no options in sight. A lot of people don’t have resources to sustain themselves and their families if they do end up losing their job. It’s important to understand what rights you have as an employee. This way, if you do get laid off, you can legally protect yourself. Here’s a few things you should familiarize yourself with if you do get laid off from your job.
At-Will Employment
At-will employees can be terminated for any reason that is not illegal. Most working Americans are under an at-will employee contract. An at-will employee doesn’t have know why they’re being let go. If you’re an at-will employee, you can ask why you’re terminated and about how you’ll be referred to if you’re referenced. According to the National Conference of State Legislator:
At-will means that an employer can terminate an employee at any time for any reason, except an illegal one, or for no reason without incurring legal liability. Likewise, an employee is free to leave a job at any time for any or no reason with no adverse legal consequences. At-will also means that an employer can change the terms of the employment relationship with no notice and no consequences. For example, an employer can alter wages, terminate benefits, or reduce paid time off.
However, some at-will employees have a contract with their past employer. These contracts may have a certain duration of employment that protect an employee from being let go. If an at-will employee is let go before the contract is up and has not breached the contract, they were wrongfully terminated.
Large Company-Wide Layoffs
When an employer conducts large-scale layoffs, they are required by law to release a Work Adjustment and Retraining Notification (WARN). This allows employees to have ample notice before they may potentially lose their job. If the employer doesn’t release a WARN statement to their employees, they may be required to pay employees for the days of notice. Although the WARN act does not prevent employers from laying off employees, it does require they give as much notice as possible, and pay up to 60 days of work.
Reasons Employees Can’t Be Fired
An employer cannot retaliate against employees for reporting illegal activity or workplace issues. Likewise, even if the employee is at-will, they cannot be fired for discrimination. Employees have a case against their past employer if they can prove they were let go because of:
- Workplace disputes such as a wage dispute
- Whistleblower dispute retaliation
- Public policy claims
- Title VII and other laws prohibiting discrimination
There are a few additional laws that will protect employees from being wrongfully terminated even if they are at-will. These are the following laws that protect employees against wrongful termination:
- The Fair Labor Standards Act and state wage and hour laws
- The Occupational Safety and Health Act (OSHA)
- The Family and Medical Leave Act (FMLA)
- The National Labor Relations Act
Be sure to also investigate your state laws on wage and employee rights.
Employment Separation Agreement
When employees do get laid off, employers will typically ask them to sign an employment separation agreement. Take your time reading and going through the agreement before you sign anything. Asking a lawyer to go over the agreement will also ensure that your rights as an employee are protected. The agreement may have important information on severance and on the conditions of the termination.
This agreement may also include answers to questions such as what happens to your stock options and unused vacation time. It may also give some insight into the reasons for termination.
Other Questions You Should Ask
Even if it has been stated in your separation agreement, you should still ask for clarity from your employer. Ask as many questions as possible, as you may be out of work a while. Securing your other assets will protect you and your finances. During the termination process with your employer, be sure to ask them:
- When will you receive your last paycheck
- If you’ll get paid for my unused vacation time, or how they plan on compensating you
- What kind of severance you should expect
- How long you have to access your stock options
- What’s happening to your health coverage and other benefits, and when you can access them
- If the employer will provide a reference for you and what they want to say about you
- If you can have copies of your performance reviews
- What will happen to your 401(k)
Be informed and make sure you understand where your money is going if you’re laid off. Knowing the terms and rights you have during the employment termination process will help you keep your money and help get you future employment. If you were wrongfully or illegally terminated, call one of our qualified employment lawyers for legal advice.