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Thursday, April 14, 2005
 
CrossRoads Newsletter and Career Development Center
Dirty words for jobseekers include downsizing, acquisitions, mergers, closures, cutbacks, and layoffs. No one wants to lose their job, especially with rising gas, utility, and cost-of-living prices. Just the mention of proposed company changes has employees turning to the rumor mill with the same aggressiveness that paparazzi clamor for celebrities’ pictures.

Let’s be honest, no one looks forward to being let go, for any reason, and unemployment isn’t enough to keep most families afloat. People rely on their incomes; therefore, identifying any hint of a layoff is critical to jobseeker survival. Facing unemployment can be daunting, but the true test is how you prepare for it with the time you’re given.

Unlike days passed, companies rarely announce an upcoming layoff, unless the story is leaked and somehow makes the six o’clock news. A number of reasons account for these tactics, for example, the attitude and dedication of employees oftentimes change once their necks are potentially on the chopping block. In addition, private documents may suddenly disappear at the hands of disgruntled employees. Companies have too much to lose, so you can understand the need to keep a layoff or downsizing hush-hush.

So, how do you learn what’s going on behind your back? Companies doomed with potential layoffs oftentimes drop breadcrumbs before making cuts:


 
by Bob Olman

When Donald Trump lovingly says, "You're fired," the analyst, with head
bowed and tears welling up in his eyes, empties his desk and quietly skulks away
(unless we're lucky enough to see a wild-eyed rant). Then Trump and the rest
of the cast have a good laugh and go on with the life of the heavily
indebted. While the switch to unemployment flows seamlessly enough on television,
real life transitions are rarely so clean. In a nation riddled with legal
activity, it's wise to familiarize yourself with legal issues which could affect
your employment.

Luckily for you, I've come up with a list of basic thoughts on this very
topic. Be forewarned, dear reader, this is amateur hour: I'm not, nor have I
ever been, an employment attorney. So I've balanced my inexperience with some
input from true employment and contract law professionals. I should also note
that the sample case, New York State, is being used because it's our area of
expertise (and for reference's sake only): being that employment law varies
from state to state, always discuss your questionable legal situations with
local counsel. Let's get started.

1. Get it in Writing

If this isn't burned into your brain by now, make 'Get it in writing' your
mantra until it is. Verbal contracts are only valid on TV and in the Morocco
of the late 1600's. You should always get an employment agreement or offer
letter before you start work for a new employer. At the very least it should
state the basics of your job, such as function and compensation elements.
Anything promised to you verbally should be committed to writing and signed by the
employer. This includes bonuses, early reviews, commission rates, benefits
and the like. And if something needs to be reviewed by an attorney, don't take
shortcuts: wait to sign until you've had a professional look at the documents.

2. Put it in Writing

Don't just leave the writing to someone else. Pick up a pen and get started
yourself. For example, if you're being discriminated against, document the
actions as they happen. Write down what transpired, with whom, names of
witnesses, the date and time. And get into a habit of doing this. If you submit
complaints to the HR department or your boss, make sure to get copies. Should you
decide to take legal action once you're fired (or when you resign) these
notes are your evidence. They're the only thing that credibly separates your
story from your former employer's.

3. You're an "At-Will" Employee

This sword has two edges. Not only can an employer fire you on a whim (minus
discrimination), but you can also quit at any time.

4. Non-competes

These are very hard to enforce (at least in the State of NY). For example,
the New York State Supreme Court has found that unless the employer is willing
to provide compensation to you during the term of your non-compete, the
agreement may be invalid. Furthermore, the non-compete must be very specific and
narrow in the areas it prohibits you from competing with the employer.

5. Work for Hire

Generally, if you invent something while employed it's 100% property of the
employer: this could be a product, process, or intellectual capital. You're
only protected if your employment agreements explicitly state your ownership
(highly unlikely unless you demanded this up front); if not, you're out of
luck.

6. Advancement

Whether or not you move up at your job often depends more on the employer
than on personal determination. Even if your advancement is in the hands of
another person, I recommend the staid old formula: work hard to earn it. If
opportunities to develop don't surface in direct proportion to your drive and
success, you know my number!

7. Medical Insurance

After termination, the employer MUST provide you with the same medical
insurance plan you had while employed. However, it's 100% at your cost. But if the
forms aren't filled out and payment isn't made in a timely manner every
month, your employer can cancel your insurance. Upon termination, be sure to
request your COBRA form. This is your right. (For more information on COBRA,
check out _this site._ (http://www.cobrainsurance.com/) )

8. Severance Pay & Releases

Sign one of these and you make it very hard to pursue any claims against
your employer. Think long and hard before doing so, especially if you believe
you've been discriminated against.

I asked the Law Office of Amos Weinberg, a practice specializing in
employment contract and collection litigation, for more on wages. Here's what they
had to say:
"Under a special section of the law (Business Corporation Law, Section 630),
if your employer is a non-publicly traded New York corporation which fails
to pay your wages, you can hold the largest shareholders personally liable as
long as you give them proper notice within 180 days of when you last worked
for the company.

Under New York's Labor Law, if you don't get paid on time, you may be
entitled to an additional 25% of what they owe you (Sec. 198) or, if you're a
salesperson, possibly double (Sec. 191). Any deduction from your pay that isn't
for your benefit, or to which you didn't agree, may be illegal (Sec. 193), such
as a deduction of unearned draw previously paid to you if there was no
agreement allowing such deduction (52 NY Jury Employment Relations, Sec. 91)."
So, folks, don't keep yourselves in the dark! Having a handle on the legal
issues surrounding your work-life will make your next transition - whether
voluntary or not - a much smoother ride.

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