Lay Off vs. Wrongful Termination

Originally, a layoff was a temporary suspension from work.  It occurred when a factory needed to install new equipment or retool for a few weeks with the workforce returning.  Today a layoff can be temporary, but it can also be a permanent termination of a large group of employees for business purposes.  In these cases an employee is usually receives a termination letter, a severance package or other lay off benefits.  Layoffs are usually for legitimate business reasons like the loss of a type of work or business slow down.

What is Considered Wrongful Termination?

A wrongful termination means that your employer has laid off or fired you for an illegal reason according to the law.  The termination may appear legitimate on the surface in that the employee received a termination letter, a severance package or lay off benefits.  A termination can be wrongful if:

• It is in violation of federal and state anti-discrimination laws
• It is a form of sexual harassment
• It is a violation of oral or written employment agreements
• It is in violation of labor laws or collective bargaining agreements
• It is in retaliation for making a claim or complaint against the employer.

Terminations can be wrongful if an employee is fired for personal reasons such as the employer has taken a dislike to the employee, which may give the employee a claim for defamation. 

Layoffs as Wrongful Terminations

Layoffs can also be wrongful terminations, if the layoffs have a disparate impact on a protected class.  For instance ff a company has a layoff claiming a business slow down, but the layoffs affect mainly employees over 40, this is a wrongful termination because it violates the ADEA. A lay off that had the effect of terminating women employees more than men would be a wrongful termination based on gender. A lawyer licensed in your state would be able to evaluate your case to determine if infact a wrongful termination law was violated in your lay off.

Hiring a Lawyer to Help

If you believe your layoff may have been in fact a wrongful termination, you should consult a lawyer experienced in employment law.  Discrimination laws have specific timelines that must be followed in order to pursue a successful claim.  Federal and state laws provide different protections that an employment lawyer will understand, as these types of claims are complicated and not easy to pursue using self-help.