There are small signs that the recession may be over. Indications of an improving economy may include improved sales in several industries, rising housing prices, increased factory production, higher corporate profits reported on Standard & Poor’s 500 Index, stabilized or even declining unemployment rates, and increased consumer spending.
With those healthy economic signs, Maryland readers may question whether employees still need to fear a reduction in force. Unfortunately, two recent announcements suggest that layoffs are still an issue in the region.
Serco Group, a defense contractor headquartered in Reston, Virginia with several locations in Maryland, recently announced that it might have to lay off 480 Maryland employees. The company also notified the state’s Department of Labor. Frederick Memorial Hospital also recently issued a press statement, announcing its plan to lower its operating expenses by $6 million. Those cuts will likely also mean layoffs.
When layoffs occur, several legal issues may arise. For that reason, many employers consult with an attorney with experience in such issues of labor and employment law. For example, in the case of municipal, state or federal government workers, a layoff or other adverse employment action is likely governed by regulations. As a result, a governmental entity may expose itself to a wrongful termination lawsuit if those regulations are not followed.
Employees of both governmental and private employers may also belong to a union that has executed a collective bargaining agreement with management. The terms of that CBA likely include provisions for layoffs and reductions in force. Finally, additional federal or state laws may also apply, such as the Worker Adjustment and Retraining Notification Act, which applies to certain employers with 100 or more employees.
Source: examiner.com, “Serco Group, Frederick Memorial Hospital plan layoffs,” Warren White, March 11, 2013