Performance layoffs

[anonymous]

the company I work for has seemed to make an annual tradition of doing unannounced end of year layoffs with no warning.

They recently let go of around 150 reps across the nation last week for so called ‘performance” issues with the supposed criteria for those being forced into “mutual separation” being those reps who have received at least 2 ‘does not meet’ ratings over the past 3 years. ratings are are based completely on sales performance despite the company claiming that “behaviors” account for 30% of your rating. In reality - eveyone knows behaviors count for nothing.

That said, how can the company legally fire these people for “performance”, when they have admitted that the data that they use to track our sales results is inaccurate, and at best, only a ‘guide’.

Also - -supposedly when people are let go from this company they must sign some document within 24 hours stating that they won’t sue, and if they don’t - they will not receive their severance payment.

What legal recourse do these people have - if any? How can a company fire people for poor performance when the company themselves has admitted that they can’t completely accurately track sales performance?

 

[Charles Joseph]

Most states, including New York, are employment-at-will states. That means employers do not need a good reason to terminate an employee; it can terminate a worker for a bad or unfair reason or no reason at all. However, if you have an employment contract that says you can only be terminated for “poor performance,” then whether an employee can be terminated depends on how that term is defined in the contract.

Also, employers typically can require an ex-employee to sign a release promising not to sue before he or she can receive a severance payment, but there are some situations where the employee may be able to argue that the release is invalid.

For example, if the employee already is entitled to a severance package under the terms of an employment agreement or employee handbook, the employer has no basis to require that employee to sign a release. This is because a contract must benefit both sides, and if an employee already has the right to a severance payment, there is no consideration for the release.

Additionally, while it is not improper for the employer to impose a deadline for signing the release, a court might consider the agreement to have been signed under duress if the employee is called into the office and told they cannot leave until they sign the release.

Finally, if the employee had a possible age discrimination claim under ADEA, the law requires the employer to follow special rules. The employer must inform the employee in writing to consult with an attorney. The employee also must be given time to consider the release before signing as well as time after signing to change his or her mind. If an employer doesn't follow these rules, the release can be invalidated.

If you have reason to believe you have been wrongfully terminated or that you a release that is invalid, you should contact an experienced employment attorney.

You can read more about employee rights at https://www.workingnowandthen.com/.


This response is not legal advice, but is general information only, based upon the information stated in the question and general legal principles. It is provided for general educational purposes of the public who may have similar questions, not for any specific individual or circumstance. It is not intended to create an attorney-client relationship. Legal issues depend on all the specific facts of a situation, which are not present here. If you would like to obtain specific legal advice about your issue, you must contact a local attorney who is licensed to practice law in your state.