Could Yahoo layoffs help elsewhere?
Yahoo Layoffs, Over 2000 Jobs Lost. Was there a Silver Lining?
Yahoo has been trailing Google and Facebook Inc in overall revenue, mainly driven by advertising sales. Chief Executive Scott Thompson restructured the company and laid off close to 2000 employees in an effort to catch up to his competitors. Hopefully, the company doesn’t cut any corners while doing so.
There are several issues that can arise during mass layoffs and restructures. Misclassification as a salary employee is usually the biggest concern. Oftentimes, employees that were improperly classified as salary employees are laid off and offered severance packages. It is standard that the severance packages relieve liability from the company. In other words, if the employee accepts the severance package they will never be able to sue the company for nearly anything, including misclassification. Misclassification cases are typically very costly for the employer, offering severance is a much more economical solution for them.
Next, with the new restructure companies may change the job duties of the employees which can again end up misclassifying the employees. After all, it’s not the job title that determines how the employee is paid, it is their job duties. During restructures employees may change titles, but not necessarily job functions, and the company may seek to switch the employee from hourly to salary based on the new job title. This is potentially a poor decision on the employer’s part. Or the opposite, no change in job title but a big change in job duties. An employee that was once a salary employee may no longer be considered such under the law. Now the company may have left themselves open for a law suit for unpaid overtime.
Labor law is complex; if you have any questions regarding your employment or your classification, it is recommended that you contact a San Jose labor law attorney who can help you understand your rights and in many cases will review your situation without charge.
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