What Does Layoff Mean?

Knowing what to do after getting laid off can be critical for protecting your legal rights and, in the case of wrongful termination, your right to sue for damages.

Give Yourself Some Time to Process the News

Receiving a termination notice can come as a huge shock, especially if you have been in your position for many years or even decades. Take a few days to digest what has happened. However, do not wait too long to learn about your legal rights as you could have legal recourse, and there may be a short deadline for filing a claim.

Review the Terms of the Layoff

If you have an employment contract, carefully review its terms. Your contract may include details regarding any severance packages, benefits, and medical insurance. Some employers attach conditions to severance payments. Therefore, consider contacting an attorney who can review the documents before you sign the severance agreement.

Gather Evidence

If you believe that you have been wrongfully laid off, start to gather evidence that supports your suspicion, which can include:

• An employment contract
• Correspondence with your employer, such as emails and texts
• Names and contact details of coworkers who may have witnessed discriminatory or retaliatory actions by your employer

Contact a Morgan & Morgan Employment Attorney

Handling a wrongful termination case on your own can be tricky. You may first have to file a claim with your state or federal agency before you can file a lawsuit against your employer. Moreover, acting fast can be crucial as the deadlines to file a charge with the EEOC can be as short as 180 days. Failing to take the correct steps and adhere to your state’s deadlines could mean losing the right to sue your employer for compensation.

A labor lawyer at Morgan & Morgan could help wrongfully dismissed employees in several ways, such as:

• Determining your legal options
• Filing your claim with the appropriate state or federal agency
• Gathering and organizing evidence to prove your wrongful layoff case
• Determining your losses such as benefits, back pay, and more
• Filing a suit against your employer
• Taking your case to trial and fighting strongly for what you deserve

Our labor attorneys are experienced litigators who can leave no stone unturned in fighting for the best possible outcome of your wrongful termination claim. You pay nothing unless we win.

Workers are generally entitled to collect unemployment benefits if terminated through no fault of their own. Therefore, workers laid off due to a company downsizing or a factory closing are generally eligible for unemployment benefits. However, depending on your state, there may be other requirements for collecting unemployment benefits, such as length of time at your job.

In a furlough, employees experience a temporary suspension for company-specific reasons, such as renovations, restructuring, or relocation of a business. Furloughed workers merely experience a pause in employment and usually keep their job titles and employee benefits as they eventually return to their position. Furloughs can also affect government workers, for example, during a government shutdown.

Most employees lose their health insurance when laid off. Losing your health insurance and, potentially, your family’s health plan can come as a blow. However, you may qualify for the federal Consolidated Omnibus Budget Reconciliation Act (COBRA) program, which allows employees to receive continued insurance for a limited amount of time under specific conditions.  

However, individuals typically have to pay the entire premium for their plan, which can work out much more expensive than their previous employer-provided health insurance. Therefore, you might be better off shopping around for other plans, such as those offered under the Affordable Care Act. 

What happens to your 401k after termination can depend on the type of plan. Ensure to ask your employer about your options. Although no longer allowed to contribute, you may be able to keep the 401k. Alternatively, you could cash out or roll over your 401k into another retirement account, such as an IRA. However, some of these options involve penalties and other disadvantages. Therefore, before taking action, consider seeking advice from a financial advisor or accountant regarding your options.

RIF stands for “Reduction in Force” and occurs when a corporation permanently eliminates specific posts. RIFs are slightly different from layoffs, as the intention is never to rehire the employees. Traditionally, a layoff used to be a temporary suspension of workers to rehire them later. A layoff may turn into an RIF if the business never rehires the laid-off workers.

When RIFs May Not Be Legal

Similar to layoffs, RIFs can happen when a company downsizes, restructures, relocates, or permanently closes a branch. However, in some cases, RIFs may be illegal. For example, if the workers singled out for an RIF all belong to the same protected group, such as individuals over 40, women, or those of a specific nationality or race, the employer may have illegally discriminated against a protected group.

If your employer fires you due to reporting wage and hour violations, they unlawfully retaliate against you. Employers must not lay off workers for reporting violations or assisting other workers with a claim. If an employer illegally retaliated against you, you could sue for wrongful termination and pursue compensation, such as:

• Reinstatement in your position
• Back pay and lost benefits
• Awards for emotional distress

Since proving wrongful dismissal can be challenging, consider working with a labor lawyer. Morgan & Morgan’s motivated employment attorneys could help you hold an employer accountable for unlawful retaliation. 

Every law firm has its own fee structure. While some employment lawyers work with an hourly fee or a retainer, which can work out expensive for clients, others work on a no-win-no-fee basis (contingency). However, even those agreeing to take on your case with a contingency agreement may charge you out-of-pocket legal expenses. Therefore, make sure you know your costs from the outset.

When we take your case, you don’t have to worry about paying your lawyer, as we don’t charge a dime upfront. Morgan & Morgan knows that losing your job can cause great emotional distress and financial hardship. We only get paid when we win, and you receive compensation.

Nobody should lose their job due to their gender, age, race, or disability. If you were laid off due to discrimination, filing a worker’s compensation claim, or another unlawful reason, you could be entitled to damages.

If you are trying to understand what it means to be laid off, and suspect that you were fired for ulterior motives, you can fight back. Morgan & Morgan’s tenacious employment lawyers could help you stand up against an unscrupulous employer.

Get started today and contact us for a free and confidential case review to clarify your legal options.