Legal Question in Discrimination Law in California
Employment Law
I am faced with a decision, hoping someone might give some input. I have worked for a large auto-motorcycle manufacturer/distributor for 30+ years. Voluntary Separation Plan has been offered to the entire division, which includes one year salary + $1000 per each year of service. I am 55, therefore can retire at a reduced pension, however I am not prepared to retire at this time. The VSP states it is voluntary, however it also states if I don't take it, there is no guarantee of a job or current salary or same position. The cover letter given to all employees states there are no guarantees about future employment. The contract itself states that you have not been pressured and are leaving under your own free will (If that isn't pressure, I don't know what is). If I do not take the VSP and retire, would there be any recourse if I was laid off after the fact. Does seniority and years of service/experience come in to play? If they let me go, could it be considered age discrimination?
Thanks for your advise, I need to make this decision within the month.
3 Answers from Attorneys
Re: Employment Law
Another sign of a troubled economy! Most employment in CA is considered at-will, although you might find some way to argue that you have an agreement to only be terminated for good cause based on your longevity, praise, commendations, etc. That's always hard to prove, especially when the company is facing economic hard times. If you can prove that all who have been offered the voluntary separation plan are over 40 years old, that might be indicia of age discrimination.
Otherwise, the separation plan seems reasonable, if it includes ongoing health benefits. The way you describe it sounds like you aren't precluded from accepting a job elsewhere. As an aside, and I'm sure you've thought about this, pensions don't seem to be as definite as they once were, given all of the economic fallout and bailouts. Just some random thoughts about your difficult choice.
Re: Employment Law
How about some practical advice? Listen, you're stunned and shocked at your being treated in this manner after being with the company for so long. And, leaving the company sounds horrible to you because its the only thing you've known for so long that what might come after leaving it is probably very scary. Allow your emotions to run the course for as long as you can - but you will have to act while the offer is still open. Letting your emotional reaction subside a little may give your logical side a chance to emerge. When it does, consider this: You are being offered a guaranteed source of income and a $30,000 bonus check to help you out - and all this at a time when the nation is in total economic disarray and heading south fast. On top of this, you can still look for another job or, possibly, have a chance that few others get in life - the opportunity to try something new that you might have always wanted to try. Sounds like a great deal to me. I would take it in a heartbeat.
Re: Employment Law
You've been warned, you won't have a sure job. Reject the severance at your own peril, because you will NOT have any recourse later unless you could prove the 'sure to happen' termination when the rest of you get busted out is 'illegal' - highly unlikely.
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