Layoff Question

We are having about an 11% layoff coming up. One of those tagged for layoff is a manager who is 65 years old. She has an assistant who is 36 years old that will basically take over doing her job. Are we in trouble with age discrimination if we let the manager go rather than her assistant? There are no job related issues. However the manager makes double what her assistant makes.

Comments

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  • At first "blush" -- the red flag goes up on this one for me. I would certainly be talking with my attorney, especially when you can't even tie the layoff to any performance issues.
  • I am assuming that an "11% layoff" means you are laying off 11% of your workforce. If that is the case, you need to look at the impact of all the layoffs on those older than 40. What percentage of your work force is over 40; and what percentage of those being laid off are over 40? I would do the same analysis for those over 50 and over 60, by gender and ethnicity. As long as the demographics of those being laid off roughly match your work force, you should be okay. If the layoffs are having a disparate impact on a particular age group, gender or ethnic group, you should question it.
  • Oh boy, red flags are flying. But, if you do the analysis David suggests, you stand a better chance of remaining safe. I have done exactly that in the past when we've laid off here.

    But, it sounds like the only reason you are laying off the manager is because of her relatively high salary. She makes a higher salary because of her experience and the experience is a result of her age, therefore, you are laying her off because of her age. You're screwed. Well, at least a lawyer may try to spin it that way.

    Will you give the assistant the title of manager of just have her assume the responsibilities along with her current job? That can make a difference.
  • When a company plans layoffs, the operative word is to be "planned". David is quite right. You need to be able to explain/justify the positions that are being eliminated and those that are being maintained -- and no inequity, especially based on those in a protected class (age, race, ethnicity) should be apparent. Basing it on arbitrary reasoning willy-nilly is what causes the legal issues.
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