Exempt Confusion

Last year the owner promoted 2 individuals into new supervisory positions- We are a retail business and although we are open year round, we lay off alot of our hourly ee's in the off season. Owner is now saying we may have to lay off these 2 individuals. They worked long and hard "in season" and I'm trying to collect my ammunition in an attempt to change his mind. There are alot of reasons not to do this but are any of them Legal Reasons???

Comments

  • 4 Comments sorted by Votes Date Added
  • It might be easier to answer your question with "how many bolts are on a 747"...
    Unless the lay-off of the exempt people is based on discriminatory reasons (age, sex, etc...), there's probably nothing illegal with their separation. The fact that they were exempt probably means nothing for their continued employment (assuming no employment contracts, etc), but you're in a better position to determine how their separation was determined and what factors were used to RIF them..........If these individuals are whispering disparate treatment, then you'll be better served reviewing this with your local legal counsel; otherwise it's the employers right to determine how many staff it needs.
  • They worked long and
    >hard "in season" and I'm trying to collect my
    >ammunition in an attempt to change his mind.
    >There are alot of reasons not to do this but are
    >any of them Legal Reasons???


    What are those reasons? An employer is within his/her rights to layoff personnel due to fluctuations in the business cycle, no matter how hard someone worked 'in season'. As long as the selections are not based on factors that violate federal or state laws, the employer is free to make such decisions in the interest of his business. When things get tough, people get laid off, even good people.
  • Yes, lay offs happen everyday somewhere but I would want to make sure of three things. First was there a verbal or written contract made with these individuals when they were promoted. And second, did they actually perform exempt duties? There has been some recent court activity regarding exempt versus non-exempt status of retail managers. The most recent case that comes to mind is the Radio Shack case and a 29.9 million dollar settlement. Did you make sure their duties were 60% managerial?

    The third point others have already made and that is how were these two individuals selected as the ones that would be caught up in the RIF? Were there any discriminatory reasons?

    gb
  • I have to agree with the last post... Were they "really" in a supervisor position or was this just away for them to "work long and hard in season" and not have to pay them overtime? If this is not in question, then I agree with the others. It is up to the employer to decide how many employees it needs to maintain its business.
    Good luck,
    Dutch2
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