Wrongful Termination Lawsuits on the Rise
According to a recent article published in The New York Times, the rise in layoffs has also coincided with new laws that give employees more legal arguments to draw from in initiating a lawsuit. There also seems to be a sense that President Barack Obama will be more proactive in enforcing employment laws than President Bush’s administration was. He recently signed legislation that overturned the Supreme Court’s decision in Ledbetter v. Goodyear Tire Company, Inc.
Both class-action suits and individual claims are being filed with increasing regularity. Terminated employees of Ethan Allen and Dell have filed age discrimination suits, and a veteran has sued Lockheed Martin, alleging that they discriminated against veterans. Some employees are also investigating whether their former employer violated the Worker Adjustment and Retraining Act, or the WARN Act, which requires 60 days notice before laying off employees. WARN Act violation lawsuits have been filed against Lehman Brothers, an airline company and two law firms. New York has similar legislation that provides that companies must give 90 days notice. Lawsuits alleging WARN Act violations do not require that the government investigate a claim first, like many employment discrimination claims require, which could lead to a rapid escalation of WARN Act suits.
