Layoffs Lead to Lawsuits 04-16-2008
- By Rita Risser, attorney at law

When I represented employees in lawsuits in the 1980's, we always knew that when the general economy got bad, our business would start booming. Employees will put up with a lot as long as they have jobs. If they are laid off, they will do everything they can to get back at the employer and make up for lost income.

New statistics from the Equal Employment Opportunity Commission support this conclusion. In 2007, the number of employee claims increased by 9%. In some areas, the increases were significantly more - retaliation claims were up 18%.

Perhaps most significant, sexual harassment claims were up 16%, the biggest increase since 1992.

The U. S. Supreme Court has recently added to employers' problems, by allowing employees to bring in more evidence to bolster their claims. In the past, employees have been able to bring in evidence of discrimination only by the people directly involved in the employee's case. In Sprint v. Mendelsohn, the U. S. Supreme Court said that other employees in other parts of the organization can testify if the employee is claiming the company has an overall policy of discrimination. When companies have layoffs, there is a large pool of disgruntled employees available to testify in these cases.

What this means to you: If you have to lay off employees, you can decrease the potential for lawsuits by treating them fairly. Explain how people were picked for layoff. Give them as much notice as possible. Consider offering some outplacement services, and giving them letters of recommendation so they can get new jobs fast. Most importantly, treat them with respect. Employees who feel respected are less likely to go to an attorney.

 

Information here is correct at the time it is posted. Case decisions cited here may be reversed. Please do not rely on this information without consulting an attorney first.