Our Employment lawyers in Miami, FL at BT Law Group, PLLC, have seen an uptick in calls from employees who have been subject to a layoff. Employees typically learn of a layoff at the same time they are informed that they are to be laid off. Companies generally keep this information strictly confidential because a leak of the news could have several legal implications as well as affect employee morale.
Recently, one of the largest employers in the country, Amazon, had the news of a layoff leak via email. Specifically, a senior Amazon vice president’s assistant accidentally sent a calendar invite for a meeting about “Project Dawn” and included details about layoffs before they were supposed to be announced publicly. The Amazon leak raises several potential legal implications for employers.
Is a Leaked Layoff Announcement Legally “Notice” Under WARN?
The Worker Adjustment and Retraining Notification Act (“WARN Act”) applies to employers with 100 or more full-time employees and requires the company to provide 60 days’ advance notice of plant closings or mass layoffs affecting more than 33% of the workforce or at least 50 employees at a single site. The Amazon layoffs involved 16,000 people, so it is likely that the WARN Act applies.
The requisite notice under the WARN Act includes the anticipated date of separation, whether the layoff is permanent or temporary, and contact information for further details. When employees learn about an impending layoff through a leaked email or other informal communication, it raises a legal question about whether the employer effectively provided notice.
In some instances, early disclosure can be used as evidence if the employer changes the list of employees who are ultimately subject to the layoff or reduction in force down the road. Any change in names to be included (or not included) in the layoff after premature disclosure potentially allows the employee to argue that subjective criteria were used to select the employees to be included in the reduction in force, which may raise claims of disparate treatment or disparate impact depending on the circumstances.
Also, the premature email leak could constitute improper notice under the WARN Act, as it requires impacted employees to be notified 60 days before the date of termination. This error could potentially entitle the employee to back pay and other damages.
Can Early Knowledge of a Layoff Affect Your Job or Benefits?
The short answer is “YES.” This is one of the most overlooked risks when layoffs are disclosed prematurely. When employees learn about a layoff before it’s officially announced, it is natural to feel the urge to act quickly. Some employees will start to look for a new position immediately, others resign preemptively as they believe it would be easier to explain than a layoff or termination when interviewing for a new position, and some make financial decisions based on incomplete information. From a legal perspective, those early decisions can have a significant impact.
For instance, a voluntary resignation prior to an official termination date can jeopardize the employee’s eligibility for severance or continued health coverage. Employers generally offer severance contingent on the employees completing a certain amount of work or meeting a time commitment to the company. If an employee leaves the position preemptively, the employee may lose out on those benefits.
There are also risks tied to bonuses, equity, and commissions. Many employers condition payouts on being actively employed on a certain date. When an employee acts too soon or too quickly, even when a layoff seems inevitable, the employee can impact his/her ability to receive all compensation that may have otherwise been available.
Another area of potential concern for employees is that asking questions or expressing concerns may subject them to retaliatory treatment. While retaliation may be unlawful depending on the circumstances, it can be difficult to prove and while the case is pending, could jeopardize the employee’s ability to receive severance if the employer offers a generous severance package as part of the layoff.
Employees should seek advice from an employment lawyer before making any drastic decisions to ensure their rights are protected.
Employment Law Attorney in Miami – BT Law Group, PLLC
Jason D. Berkowitz, Esq.
Jason D. Berkowitz is a founding partner of BT Law Group, PLLC and a Miami-based labor and employment attorney. Before launching BT Law Group, PLLC, he was a partner in the Miami office of a national labor and employment firm representing management exclusively, including many of America’s Fortune 100 companies. He earned his J.D., cum laude, from the University of Miami School of Law in 2008 and his B.A. from Tufts University in 2003. Mr. Berkowitz is admitted to practice in Florida, the U.S. District Courts for the Southern, Middle, and Northern Districts of Florida, and the U.S. Court of Appeals for the Eleventh Circuit.
His experience on the management side gives him direct insight into how employers and their legal teams approach layoffs, severance negotiations, and workplace disputes. Jason litigates cases involving the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), the Americans with Disabilities Act (ADA), Title VII of the Civil Rights Act, and the Florida Civil Rights Act, among other federal and state employment laws.
Anisley Tarragona, Esq.
Anisley Tarragona is a founding partner of BT Law Group, PLLC and a Miami-based litigator focused on resolving employment disputes and protecting workers’ rights. Before launching BT Law Group, PLLC, she practiced in the Miami office of a national labor and employment law firm representing management exclusively. She earned her J.D. from the University of Miami School of Law in 2007 and her B.S.B.A. from the University of Central Florida in 2004. Ms. Tarragona is admitted to practice in Florida, the U.S. District Courts for the Southern, Middle, and Northern Districts of Florida, and the U.S. Court of Appeals for the Eleventh Circuit.
Born and raised in Cuba, Anisley is fluent in Spanish and frequently advises Spanish-speaking clients. Her background representing employers gives her a unique understanding of how companies approach and value workplace disputes, which she uses to advocate for employees in cases involving discrimination, harassment, retaliation, wrongful termination, and wage and hour violations.
What Employees Should Not Do After a Layoff Leak
Don’t Resign Prematurely
Quitting before an official termination can jeopardize severance and other benefits. For example, BT Law Group, PLLC received a call from a prospective client who was subject to a reduction in force under the WARN Act, and after receiving the appropriate notice, the employee immediately found a new job and voluntarily resigned. The employer had offered a severance package, including health benefits and several months of pay, but the package was contingent on employees continuing to work until the date of the plant closure. Unfortunately, given the employee’s decision to voluntarily resign before the date of the plant closure, he was not entitled to receive the severance package the employer had offered.
Don’t Sign Anything Without Understanding It
If the news that a layoff is happening leaks, management may move quickly to try to contain the fallout, including sending out severance agreements or acknowledgements. Employers may push employees to sign these agreements quickly. Signing documents under pressure, without reviewing them with counsel, can result in you waiving important rights or claims you did not realize you had.
Don’t Rely on Human Resources for Legal Advice
Employees are often mistaken about the role that Human Resources (HR) plays. HR’s role is to protect the company, not to advise employees on their legal rights. While HR can explain company policies, it is not a substitute for independent legal counsel, especially when layoffs and potential legal exposure are involved.
Layoffs are high-risk for companies as they carry significant legal exposure. Employees should seek the advice of an experienced employment attorney prior to signing any separation or severance agreement, as those agreements generally include a general release of all claims the employee could have filed against the employer, even if they are unrelated to the layoff.
A Leak About a Layoff Changes the Potential Legal Implications
When information about layoffs reaches employees prematurely, it can affect how notice obligations are evaluated and how later actions by the employer may be viewed under the law. Early disclosure can weaken an employer’s ability to control the narrative around when decisions were made and why. In legal disputes, courts and agencies look beyond formal announcements and examine what employees were told, how they learned it, and whether the employer’s actions were consistent beforehand and afterwards.
A leak can shift leverage. Employers often assume they control the timing and structure of layoffs. A premature disclosure disrupts that control and can open the door to legal scrutiny that might not otherwise exist.
For employees, understanding the shift in the legal landscape and taking time to think through the next steps, and consulting with an experienced employment law attorney can make a meaningful difference in protecting the employees’ rights. Contact the experienced employment lawyers at BT Law Group, PLLC, to ensure that your rights are protected.
Get Help from an Employment Law Attorney in Miami
Being included in a layoff is stressful, and learning about it through a leak rather than an official announcement adds another layer of uncertainty. Employees in this situation may have legal rights they are not aware of, particularly if the employer failed to provide proper WARN Act notice, used discriminatory criteria to select employees for the layoff, or pressured employees to sign severance agreements without adequate time for review.
Jason D. Berkowitz and Anisley Tarragona of BT Law Group, PLLC have spent their careers handling employment disputes in Miami-Dade County and throughout Florida. Before founding BT Law Group, PLLC, both attorneys represented employers at a national labor and employment law firm, giving them direct insight into how companies approach layoffs, structure severance agreements, and defend against employee claims. BT Law Group, PLLC’s wrongful termination attorneys and employment contract lawyers help employees protect their rights during reductions in force.
Call BT Law Group at (305) 507-8506 for a case evaluation. The firm’s Miami office serves employees throughout Brickell, Coral Gables, Miami Beach, and South Florida. Your attorney can review your situation, explain your rights, and help you decide how to move forward.
