Impact of Job Cuts on Tech Workers: Legal Protections & Considerations

Workers Face Job Cuts at Major Tech Companies: What to Know
 

Workers at major tech companies have faced job cuts recently, with Meta (Facebook's parent company) leading the way with 11,000 layoffs, followed by Amazon with 18,000, Microsoft with 10,000, and Alphabet (Google's parent company) with 12,000. According to layoffs, over 76,000 workers have been laid off by more than 234 tech companies in 2023. Minnesota staffing agency Robert Half's survey found that 60% of Minnesota companies are expanding by adding new positions, while 38% are filling vacant positions, but layoffs are still affecting some workers. An employment attorney at Halunen Law in Minneapolis stated that an affected employee should expect a written severance proposal from their employer, and their rights to severance will depend on whether they have a contract of employment.

Prior to accepting a severance package, it is important for workers to ask themselves if they were unfairly selected for layoff if they belong to a legally protected class (e.g., based on race, age, gender, disability, nationality, sexual orientation, or religion), or if they recently took medical leave. If the answer to any of these questions is "yes," it is crucial to contact a lawyer.

Legal Protections for Affected Workers

Workers should also be aware of federal laws that protect their rights, such as the Work Adjustment and Retraining Notification (WARN) Act, which requires employers to give 60 days' notice before a mass layoff. Additionally, the Older Workers Benefit Protection Act protects workers aged 40 and older, requiring employers to provide special considerations beyond what is included in the standard severance package.

Charles Horowitz, an employment attorney at Halunen Law in Minneapolis, warns that there is a growing trend of layoffs affecting older workers, especially those near retirement age, who tend to be more expensive. In such cases, it is important to determine if they were targeted on account of their age.

In Minnesota, employers are required to pay earned and unpaid wages within 24 hours, regardless of the pay period. If laid off, workers should file for unemployment immediately, as there is a three-week waiting period before the first benefit check arrives. In terms of health insurance, laid-off workers may be eligible for COBRA, which allows for continued coverage for up to 18 months, or they can shop for an individual healthcare plan under the Affordable Care Act.