Tag Archive for 'layoff'

New Issues with Old Discrimination

LegalMatch just conducted a study looking at age-discrimination issues and found an overall increase in queries over the past 12 months.  Why the sudden increase in people seeking legal help for their age discrimination claim?  And what other trends have recently surfaced in the area of age discrimination law that effect everyday people?age discrimination

Let’s start with the basis for any age discrimination claim: The Age Discrimination in Employment Act (ADEA).  The ADEA provides that discrimination of individuals over the age of 40 based on their age is illegal and a prosecutable offense.

Currently, the majority of age discrimination cases we see at LegalMatch are employment related: hiring, firing, and forced retirement contexts.  This trend is not limited to one employment sector but rather affects both blue collar and white collar employees alike.

The most obvious culprit affecting these age discrimination numbers is the rising nationwide unemployment rate, currently hovering around 9.1%.  Any time there is an economic downturn, people lose their jobs.  When alternative jobs aren’t immediately available, a layoff that normally would be ignored can turn into an age discrimination lawsuit.

Interestingly enough, the Supreme Court recently made it much harder to win an age discrimination suit by ruling that the employee now bears the full burden of proving that age was the determining factor in his or her layoff, firing or demotion.  This is a significant departure from the previous balancing test the Court employed, and makes this type of lawsuit especially difficult because rarely would an employee be present when their employers are discussing their future- a key piece of evidence.

A recent article in the Wall Street Journal looked at another interesting aspect of age discrimination in the wake of layoffs- reverse age discrimination.  The article examined the rise in younger employees being laid off, often times in numbers equal or greater than their older colleagues.  Employees in their 20s and 30s are finding themselves more at risk of a layoff, as employers look to avoid age-discrimination lawsuits by adopting a last-one-in, first-one-out policy.

The LegalMatch study also confirmed this trend as a number of the age-discrimination inquires were disgruntled employees under the age of 40.  One of the big problems with this trend is that this younger age group does not have the same legal recourse.  There is no similar protection as the ADEA in place provided for the younger generation.  Essentially, by laying-off the younger members of the company, employers are shielding themselves from an age discrimination lawsuit.

Although the standard for age discrimination has been raised, the potential for suits is alarming and laying off younger workers is seen as a solution.

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What!? Fired!?? But Why….?

unemployedpimpla1With the U.S. economy spiraling further down the seemingly endless pit of economic ruin, it’s no surprise that unemployment rates are on the rise across the nation.  Almost every industry has been hurting, especially those in the technology sector.

To the lucky few fortunate enough to have dodged the wave of layoffs, as they say, go the spoils.  Only in this case instead of getting those same old boring rewards, this elite group gets the extra special gift of actually keeping their menial soul-draining jobs, but without all that unnecessary stuff, like shorter hours or, you know, more money.  At least they’ll get yolked (it’s slang people, get with it) since they’ll have to do the work of three people just to keep said soul-crushing job.

But with being fired inevitably comes the stages of job loss (which by the way seem suspiciously similar to some other grief process – I think the Kübler-Ross estate might have a lawsuit).  There’s no better feeling than finally getting over being let go, picking yourself up by your bootstraps, and then hiring an attorney to file a wrongful termination suit against your old employer.  Ahhhh, sweet revenge, I’ve missed you…

All joking aside, wrongful termination is a real and serious issue.  Homelessness is on the rise and as this economy continues to tank, more and more people will likely be fired from their jobs.  Unemployment doesn’t only destroy a person’s financial livelihood.  It can also damage a person’s self-worth, not to mention obliterate a marriage.  Finding out whether you’ve been wrongly terminated from your job can be difficult, especially in a bad economy where an unjust firing can easily be passed off as a cost-cutting layoff.  But if there’s one thing that is certain, when people are pushed into a corner, they’ll likely fight back.

In fact, according to our client case database, in the month of June alone LegalMatch.com has seen a nearly 100 percent increase in the total number of wrongful termination cases brought by our clients when compared to the same month in 2008.  Furthermore, the average number of wrongful termination cases handled by LegalMatch.com has consistently increased by approximately 20 percent over the past four fiscal quarters.  Those employed under at-will contracts in the retail, transportation, or manufacturing industries were most likely to bring a claim for wrongful termination, making up nearly one-third of all wrongful termination cases LegalMatch.com received.  These figures increased in portion to the sagging US economy.

So what can you do if you think you’ve been wrongly terminated from your job?  First thing would be to see if you qualify under any of these exceptions:

  • Discrimination – The employer cannot terminate employment because the employee is a certain race, nationality, religion, sex, age, or in some states, sexual orientation.
  • Retaliation – An employer cannot fire an employee because the employee filed a claim of discrimination or is participating in an investigation for discrimination. This “retaliation” is forbidden under civil rights law.
  • Contractual Employees – Generally, an employee with an employment contract can only be terminated for the reasons stated in the contract. Employment contracts for specified periods of time or permitting terminations only for specific reasons are rare today.
  • Illegal Acts -An employer is not permitted to fire an employee because the employee refuses to commit an act that is illegal.
  • Family or Medical Leave – Federal law permits most employees to take a leave of absence for specific family or medical problems. An employer is not permitted to fire an employee who takes family or medical leave for a reason outlined in the Family and Medical Leave Act.
  • Not Following Own Termination Procedures – Often, the employee handbook or company policy outlines a procedure that must be followed before an employee is terminated. If the employer fires an employee without following this procedure, the employee may have a claim for wrongful termination.

However, the best way to find out whether your termination was wrongful would be to consult with a qualified employment lawyer who can sit down with you and walk you through your options.  Otherwise you might end up like this guy.

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Your Marriage: A Victim of the Economy?

marital-separationEach year, thousands of clients seek divorce attorneys through LegalMatch.com. News of recent layoffs and stock portfolio value drops carries a human side, with increased tensions over money management between spouses as the result. Rising stress over unemployment, change in routine, foreclosures, spending too much or saving too little can place a significant strain on a relationship.

But even with increased martial frictions, how has this economic downturn actually affected marriages in the U.S.? Given all the speculation, it seemed fitting to see what the actual statistics would show.  From January 1 to March 31, LegalMatch client intake reports show a 7 percent increase in the rate of separation in 2009 over the same time period for 2008. This isn’t exactly an earth shattering jump, but still it is significant.

Of course, those facing harder economic times often reassess the value of their assets- and in a marriage that often means taking a good look at your combined finances. After all, divorce can be expensive, and separating from your spouse often means forgoing a second income. Some states even consider debt acquired during the marriage as community property, potentially meaning a spouse could be forced to pay the mortgage for a house in which they no longer reside. Spousal support and/or child support may be too much to pay for an individual should the marriage dissolve. The downside is that it may mean staying in a marriage that no longer works for many couples.

Right now it seems the majority of couples are choosing to weather the economic storm together, for better or worse. It will be interesting to see if this still holds true as the recession stretches on over the coming months.

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