We downsized an employee right after we hired one - is that legal? 04-16-2008

I have a concern with a recent termination in our office. We added an employee to a department then 3 weeks later terminated a different employee on the grounds of "downsizing." We are considered an "at-will" employer. Is the fact that we are an "at-will" employer enough ground to protect us from a discrimination lawsuit? We are not looking to fill the position as the department is truly downsized. Thanks

Rita Risser replies:

As an at-will employer in California, and in the absence of any discrimination, you can do what you did. That's called a termination without cause. But I just had to laugh when I read your question. How can you say the department is "truly downsized" when it isn't? You started with 5 and ended with 5.

Although you can terminate without cause, if it just happens to turn out that the downsized employee is of a different gender, age, race, sexual orientation or other protected classification from the new employee, then a claim can be made for discrimination. In that case, you would have to show you had a legitimate business reason for your decision to terminate. So far, I don't see one.

Good luck!

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