Labor and employment lawyers warn of a wave of wrongful-termination suits in the coming months as the jobless burn through their savings, run up debt and find few work prospects.
Labor lawyers advising firms in defensible downsizing say that employers should consider the law when identifying positions to be eliminated, including notification requirements, severance pay provisions and a "disparate impact analysis" to guard against terminating those in a protected class who might have grounds to sue.
The 20-year-old Worker Adjustment and Retraining Notification (WARN) Act requires employers to give at least 60 days' notice of plant closing that eliminate 50 or more jobs, and before mass layoffs affecting 500 employees or more than a third of the workforce.
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