Layoffs and corporate restructuring can create uncertainty for employees of every age. However, many older workers wonder whether their age played a role when they were selected for termination. While employers may reorganize their workforce for legitimate business reasons, they cannot use restructuring as a cover for unlawful age discrimination.
Understanding your rights can help you recognize when a layoff may deserve closer scrutiny.
Can an employer legally lay off older workers?
Employers generally have the right to reduce their workforce because of financial challenges, changing business needs or organizational restructuring.
Yet, employment decisions cannot be based on protected characteristics such as age. Federal law protects many workers who are age 40 and older from discrimination in hiring, firing, promotions and other employment decisions.
Simply calling a termination a “restructuring” does not automatically make it lawful.
Signs that age may have influenced a layoff
Every situation is different, but certain circumstances may raise questions about whether discrimination occurred.
Examples include:
- Older employees are terminated while younger employees with similar qualifications remain employed.
- The employer replaces experienced workers with substantially younger employees.
- Managers make repeated comments about retirement or needing “new energy.”
- Performance evaluations suddenly become negative despite a strong work history.
One factor alone may not prove discrimination, but several circumstances together may warrant further review.
What should you do if you suspect discrimination?
If you believe age influenced your termination, preserve any information that may help explain what happened.
This may include:
- Performance evaluations
- Emails or written communications
- Employee handbooks
- Severance agreements
- Notes about conversations with supervisors
Keeping these records may help clarify whether your employer followed consistent employment practices.
Should you sign a severance agreement immediately?
Many employers offer severance packages during layoffs. Before signing, carefully review the agreement.
Some severance agreements include provisions that waive certain legal claims in exchange for compensation. Understanding the legal consequences before accepting an offer can help you make an informed decision.
Know your rights during a restructuring
Not every layoff involving an older employee violates the law, but employers cannot use restructuring as a pretext for age discrimination. If you believe your age influenced your termination in Hollywood or elsewhere in South Florida, an experienced employment law attorney can evaluate your circumstances, explain your legal rights and help you determine the most appropriate next steps.