Dive Briefs
- With the announcement of 1,600 workers losing their jobs at Yahoo, the San Francisco Chronicle asks whether the workers will be laid off or allegedly fired with cause.
- The reason matters. At stake is not only Yahoo's already tarnished reputation, but also the fact that the tech giant is being sued over their employee review process, which plaintiffs claim is rigged to ensure people are fired, not laid off.
- Due to California labor law, Yahoo (and other Silicon Valley employers) don't have to give any notice for letting people go for performance reasons. But if they are laid off as a cost-cutting measure, the employer must give notice to employees.
Dive Insight
According to the Chronicle, California's Department of Labor keeps a close eye on employers who violate the state's "Warn Act," but there is no actual enforcement unless someone files a lawsuit, which has happened in Yahoo's case. A spokesperson for the Western division of SHRM told the Chronicle that it’s unusual that large numbers of employees are fired, as opposed to being laid off, at the same time.
A legal expert told the Chronicle that Yahoo should expect to be under a microscope as it reduces its workforce by 1,600 workers. The attorney noted that it all hinges on whether or not the company is replacing the people they are letting go, because if they are not shedding weak workers to add stronger ones, it may be largely considered a layoff instead.
