Notice to Laid Off Workers

Many workers laid off during the recent recession have contacted our firm about wrongful termination claims. It is hard to prove a wrongful termination during a downsizing and it is hard to show discrimination based upon prohibited classifications like race, sex, or age when many other workers who are not within the protected category are also being terminated.  As a general rule, if the business is going through a restructuring, it's usually not a good place to work and you are often better off finding another job.  You may or may not be offered a severance package, and if so, it will usually contain language waiving all your claims against the company.

You should think carefully before you sign the waiver provision. If you have a wage or other employment claim which you did not press for fear of retaliation, this may be the perfect time to come forward.  The waiver may or may not cover the claim.  For example, California Labor Code Section 206.5 prohibits waiver of wage claims unless all the wages have been paid.  Typically, pension claims are not “ripe” until you retire, and cannot be waived without enhanced pension money specifically being included as part of the severance package and the pension plan being a party to that agreement as well as the employee and the employer.  Age claims cannot be waived unless the company provides certain information about the numbers and classifications and ages of the other employees being laid off.  Typically, companies restrict this information to job titles that are unique to a few people, even though many, many do the same job.  This may or may not render the waiver ineffective.

In sum, we strongly suggest you consult an attorney before you sign any papers waiving these rights.  Before you waive any claims, you should consider what claims you may have and what their economic value may be.  Then you should decide if the proposed waiver covers these claims and if so, is the waiver valid in your state or under federal law.  Only then can you fully assess the value of the claims and the wisdom of signing the release of claims form.

Thierman Law Firm, A Professional Corporation
Labor & Employment Attorneys
7287 Lakeside Dr.
Reno NV 89511-7652
Phone: (877) 99 LABOR or (775) 284-1500