The Reality of Mass Layoffs and Legalities Involved
The Futility of Suing Employers During Mass Layoffs
Initiating legal action against your employer following a group termination isn’t likely to yield positive results. More often than not, it leads to wasted time, resources, and potential harm to your reputation and future career opportunities.
Even though more than a decade has passed since I was unemployed, news of mass layoffs still rattles me. It resurfaces buried memories of the 2008-2009 financial crisis. In the year 2009 alone, I witnessed seven rounds of job cuts at my company.
Once, I attempted to employ a close friend, recently a father, who had been laid off by Lehman Brothers with approximately $25,000 in unreimbursed corporate expenses. Unfortunately, he failed to impress my Australian colleague, and the opportunity slipped away, leading to a rift between us, largely due to his ego.
Ultimately, I managed to dodge those layoffs, but in 2012, I volunteered for the next round to claim a severance package. Looking back, being laid off turned out to be a blessing in disguise, although it didn’t seem that way at the time.
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The Outcry Over Twitter’s Mass Layoffs
When Elon Musk chose to terminate over 3,500 Twitter employees post-acquisition, the internet erupted. The prevailing sentiment was that Elon had unlawfully dismissed thousands without proper notice.
Here’s a tweet from Lisa Bloom, a litigation attorney, that gathered significant traction:
Important information for Twitter employees being laid off tomorrow: California’s WARN law mandates a 60-day notice for large layoffs. If you’re one of 50+ employees laid off within a month, you should’ve received this notice. I know you didn’t.
This law, applicable to California employers with 75+ employees, including Twitter, aims to provide sufficient time for laid-off workers to manage the disruption. Elon’s disregard for it has caused a stir.
Violators of the WARN Act may incur a $500/day fine for each breach. Though potentially substantial, it may not significantly impact someone like Elon.
Benefits denied due to WARN Act violations may include back pay, medical expenses under the employee benefit plan, civil penalties, lost compensation, and legal costs for the 60-day failure to provide notice. The blatant breach of workers’ rights is shocking and has incited calls for collective legal action.
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The Counterargument
Lisa’s arguments regarding WARN Act and the penalties for non-compliance are valid. However, let’s consider why joining a class action against Twitter for “illegal” termination might be counterproductive.
The Nature of At-Will Employment in California
Most California employees fall under “at-will” employment, allowing both employees and employers to sever the relationship anytime, without specific cause. Even peculiar reasons like disagreeing over preferences in dog breeds can lead to layoffs.
While there are exceptions, the at-will employment rule applies in all states except Montana. It is essential to understand the legal landscape of employment within your jurisdiction.
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Exceptions to At-Will Employment
Exceptions to at-will employment include certain public-sector workers, union members, employees with explicit contracts, and cases where employer actions override the presumption of at-will employment.
WARN Act Notification and Options for the Employee
The abrupt Twitter layoffs have ignited calls for retribution. Here’s what one might consider if faced with such a situation:
- Sue the employer, albeit with minimal chance of success.
- Request an extension to complete pending projects.
- Cease working, collect the severance, and pursue other opportunities.
Rational individuals would likely choose the second or third option.
Additional Scenarios:
- Option #2: Prolong Employment: Sometimes, it’s possible to negotiate an extended stay to ensure smooth transitions.
- Option #3: Embrace New Beginnings: Accept the reality and use the time and resources to start afresh.
- Option #1: The Legal Pathway: Consider this only if the reward is worth the potential risks to your reputation and employability.
Moving Forward Through Mutual Agreement
Rather than pursuing legal action, it’s more constructive to work toward a mutually beneficial agreement. Proactive planning and collaboration can lead to favorable outcomes for both parties.
Elon Musk’s acquisition of Twitter unfolded over several months, providing ample time for employees to prepare. While you might feel wronged by a layoff, legal action in an at-will state is rarely a viable solution. Moving on and focusing on new opportunities is often the best course of action.
