Losing your job can have significant personal and financial consequences, particularly if you are the primary breadwinner for your family. However, while layoffs and Reductions-in-Force (RIFs) are common responses to economic downturns, mergers and acquisitions, and other factors that affect the company’s bottom line, the process must be fair, objective, and non-discriminatory. Unfortunately, if employment decisions are based on an employee’s race, gender, age, religion, disability, sexual orientation, or any other protected class, this is considered discrimination.
If you have been directly impacted by layoffs or reductions-in-force, and you believe that the decision violates your legal rights, you may be entitled to damages, including financial compensation. An experienced discrimination lawyer will examine the details of your case, ensure that your legal rights are protected, and pursue the maximum damages that you deserve.
What Is the Difference Between Layoffs and Reductions-in-Force?
Layoffs and reductions-in-force are often used interchangeably, although there are distinct differences between the two. “Layoffs” generally occur when an organization cannot afford to keep the position open or when the position is temporarily unavailable. In most cases, when an employer issues layoffs, it is with the intention that the employees will be reinstated once business picks up. Essentially, it is a cost-saving step that companies take to protect their bottom line during an economic downturn.
A “Reduction-in-Force,” or RIF, occurs when a position is permanently eliminated, where rehiring or recalling an employee is not an option. Oftentimes, an RIF occurs before a change in business strategy, radical budget reforms, or other significant employment issues that cannot be solved with temporary layoffs. In most cases, companies resort to RIFs when they are faced with difficult decisions about how to maintain a positive cash flow and stay in business.
How Do I Know if a Reduction-in-Force Was Discriminatory?
Companies can legally terminate an employee or eliminate a position, provided the process is fair and does not discriminate against the employee in any way. However, if you believe that your employer engaged in discriminatory behavior during the RIF process, you will need to support your claim by collecting as much evidence as possible. The following are examples of evidence that can expose a discriminatory RIF:
- Statistical patterns. If you are able to demonstrate a statistical pattern of certain employees who have been terminated, this can support your claim. For example, if 80% of employees who were terminated due to a reduction-in-force were over the age of 50, but that age group only made up 25% of the workforce, this suggests a pattern of wrongful termination due to age discrimination.
- Inconsistent explanations. If you were told that the RIF is due to company-wide restructuring, but your employer later claims that you were terminated due to poor performance, the inconsistent justifications may suggest that the reason is fabricated. In addition, if the RIF occurs following a harassment complaint, a request for disability accommodations, or another request related to a protected class, this could be evidence of an RIF based on discrimination.
- Comparative evidence. Collect evidence on how other employees outside your protected class were treated compared to you. For example, if you can provide evidence of younger, less-qualified, or lower-performing employees keeping their jobs or being transferred, while you were terminated, this can establish a pattern of discriminatory behavior.
- Ignoring company policies. When conducting an RIF, companies must follow established policies, which often involve basing decisions on seniority or performance reviews. If your employer failed to follow these procedures, this may suggest that their stated reason for terminating your employment is discriminatory. For example, if your employer terminates your employment, despite being a senior-level employee with a pattern of positive performance reviews, but keeps a junior-level employee who has poor reviews, this is evidence that the RIF was discriminatory.
- Hostile work environment. If your employer has a history of making offensive, inappropriate, or discriminatory remarks, this creates a hostile work environment. For example, if your supervisor frequently made comments about your hair, your appearance, or an article of clothing you wear for religious purposes, creating a hostile work environment, this suggests that an RIF was based on a culture-based discrimination.
What Are Signs of an Illegal Layoff?
Company-wide layoffs are not upcoming, particularly during economically challenging times. However, the following are signs that a layoff or job termination is illegal:
- Discrimination. If you believe that you were laid off from your job due to your race, religion, national origin, sex, sexual orientation, gender identity, disability, age, marital status, or genetic information, your termination would be illegal.
- Contract violation. If you were required to sign a contract when you were hired, the document may specify the conditions that would cause you to lose your job, and the severance package (if any) you would receive. The contract should also include your employer’s obligation when it comes to layoffs, and how they should be handled fairly.
- Retaliation for prior, lawful conduct. Employers are prohibited from taking retaliatory action against an employee for saying or doing something they have every right to do or say. For example, you may not be laid off for seeking Family Medical Leave Act (FMLA) benefits, reporting illegal discrimination, or acting as a witness in another employee’s discrimination claim.
What Steps Do I Take if I Have Been Wrongfully Terminated?
If you believe that you were laid off or terminated due to a reduction-in-force, and these actions taken by your employer were discriminatory in nature, it is highly recommended that you take the following steps:
- Review your employment documents. Refer to your offer letter, employment contract, or employee handbook to confirm your employer’s policies on termination, providing notice, and severance packages you are entitled to receive.
- Request an explanation from your employer. Ask your employer to provide a written reason for your layoff or RIF to determine whether you were unlawfully terminated.
- Collect evidence. Gather as much evidence as possible to support your claim, including copies of emails, performance reviews, text messages, and statements from other employees.
- Contact a discrimination lawyer. An experienced discrimination lawyer will review the details of your case, discuss your legal rights, and help you file a claim with the appropriate agency, including the Equal Employment Opportunity Commission (EEOC) and the Pennsylvania Human Relations Commission (PHRC).
- File a claim or lawsuit. If your claim is valid, your discrimination lawyer will assist you with every step of the claims process and pursue the damages you are entitled to, including lost wages, benefits, and emotional distress.
How Do I File a Discrimination Complaint in Pennsylvania?
If you intend to file a complaint for a discriminatory layoff or RIF, contact the EEOC or the PHRC by submitting an online inquiry describing the incident, the nature of the discrimination, the parties involved, and the desired outcome. Once you have filed the official complaint, your employer will be notified about the complaint, and the agency will investigate the details of the case. Ideally, your complaint will be resolved through mediation between you and your employer.
If the EEOC or PHRC does not proceed with a lawsuit, either due to a lack of evidence or the agency found no violation, you will get a “Right-to-Sue” letter, which will allow you to file a private lawsuit against your employer. If you intend to proceed with a lawsuit, you have 90 days from the date you receive the notice to file your lawsuit in federal court. Your discrimination lawyer will work closely with you to ensure that your legal rights are protected, that you meet the strict filing deadlines, and that you recover the damages to which you are entitled.
What Is the Deadline for Filing a Claim?
It is important that you act quickly if you intend to file a claim for discriminatory behavior during a layoff or reduction-in-force. If you file your claim after the “statute of limitations” has expired, your claim will likely be denied, and you will be unable to recover any damages or pursue a claim at a later date. When filing a federal claim with the EEOC, your claim must be filed within 300 days from the date of your termination. If you are filing a claim with the PHRC, you must file your claim within 180 days of the discriminatory act. Your discrimination lawyer will help you navigate this process and ensure that your claim is filed well before the deadline.
Our Philadelphia Discrimination Lawyers at The Gold Law Firm P.C. Advocate for Victims of Discrimination in the Workplace
If you were wrongfully terminated from your job during a layoff or reduction-in-force, do not hesitate to contact our Philadelphia discrimination lawyers at The Gold Law Firm P.C. We will determine the nature of the discriminatory behavior, assist you with filing an official complaint, and negotiate the best possible settlement outcome. To schedule a free consultation, call us today at 215-569-1999 or contact us online. With office locations in Philadelphia and Pennsauken, New Jersey, we proudly serve clients in the surrounding areas.
