All too often, layoffs come without warning. Workers are often blindsided by layoffs at their companies. When they receive a pink slip with little warning, this puts them in a tough position where they may have to take a new job without seeking the best fit or best-paying option.
Knowing what to do immediately when you get laid off could help you navigate the process and proceed with less stress. This includes understanding your rights and taking action if they are violated. Rutherfordton bankruptcy lawyer also help families whose main earner suddenly lost their jobs and had to file for bankruptcy, but there are some things you can do before you get to that point.
What Do I Need to Know About Unemployment, Insurance, and Severance?
If you are laid off without warning, you need to ensure your employer is providing you with the resources and options you deserve.
First, you will need to ensure you remain eligible for unemployment benefits. If your employer asks you to resign or otherwise leave of your own accord, this could jeopardize your unemployment. Since this could be your only option for income, you need to preserve your right to receive these benefits.
Next, ask about your insurance coverage if you have health care coverage through your employer. They should not cut off your insurance immediately. You should have coverage until the end of the month. Then, you should receive paperwork about maintaining your coverage through COBRA until you get a new job or have health insurance through another source.
Last, carefully consider any severance package offered. Some companies require former employees to give up future employment opportunities, even in the same industry, in exchange for a severance. Many severance agreements require that the former employee give up any claim they may have against the company. It may not be worth giving up future possibilities for a little cash now.
Can Employers Lay Off Workers for Any Reason?
Most workers are employed “at will.” This means there is an agreement between the workers and employer that either party can stop the employment at any time for any reason. This generally benefits employers, who can fire or lay off workers as they feel necessary.
Generally, employers in states with at-will employment laws can lay off workers for any reason and without warning. However, there might be employment agreements, union terms, and applicable laws that require adequate notice before a layoff.
Mass layoffs and plant closures without any advance warning can cause major financial stress for individuals and families. In some cases, a large portion of the community could experience financial difficulties simultaneously when a large plant closes.
However, this does not always violate laws. Employers can often lay off workers for any reason and without any advance notice.
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Does My Employer Have to Provide Advance Notification of a Layoff?
Some employers must provide advance warning of a layoff under specific circumstances. The Worker Adjustment and Retraining Notification (WARN) Act is a federal law that requires large employers to provide adequate notice before a large-scale layoff or plant closure.
Under this law, companies that have more than 100 long-term, full-time workers must provide written notice of forthcoming layoffs if they will affect 50 or more workers from a single location. There are exceptions to this rule, including when unforeseen issues arise or there is a natural disaster.
The WARN Act requires these employers to provide at least 60 days’ notice before a layoff. This gives workers an opportunity to find other employment options or make other decisions about their future. During this 60-day period, the U.S. Department of Labor (DOL) also offers services and resources for affected workers. This is known as the Rapid Response program.
If your employer was required to notify you of forthcoming layoffs under the WARN Act and failed to do so, you may be able to recover pay for up to 60 days of work. An employment lawyer can help you understand your rights and how to proceed.
What If I Believe the Layoff Is Discriminatory?
Despite at-will employment laws, occasionally, a layoff might be illegal. Employers cannot retaliate against workers and terminate their employment or lay them off because of their previous actions. This protects employees who:
- Filed a workers’ compensation claim
- Reported safety violations
- Reported illegal or unethical behavior
- Took time off under the Family and Medical Leave Act (FMLA)
In addition, some workers in protected classes cannot be fired or laid off based on certain traits. If you are in a protected class and are laid off because of it, you can fight the termination. There are several laws to be aware of:
- Title VII of the Civil Rights Act of 1964 protects workers from layoffs based on their race, religion, sex, pregnancy, or national origin
- The Americans with Disabilities Act of 1990 protects employees with disabilities from layoffs based on their disability
- The Age Discrimination in Employment Act of 1967 protects employees from age-related layoffs and applies to workers who are 40+
If you believe your former employer violated federal discrimination laws with a recent layoff and this negatively affected your employment, you can file a charge with the U.S. Equal Employment Opportunity Commission (EEOC). You must have permission from the EEOC before suing your former employer for discriminatory practices in court.
Discuss Your Options With Our Legal Team After Getting Laid Off Without Warning
Our attorneys from Farmer & Morris Law, PLLC, want to help individuals protect their rights. Our bankruptcy lawyers may be able to help if you were laid off without notice and need help reorganizing your debt obligations.
We represent clients in North and South Carolina, including from offices in Rutherfordton, Morganton, Shelby, North Carolina, and Spartanburg, South Carolina. Contact us today to discuss your rights and options with our legal team. We are here to help.