IBM Layoffs - Do You Need to Consult a Lawyer? Phone: 802-864-6400
I have received a number of calls from employees who have just been laid-off at IBM. IBMers I have heard from so far have been offered a severance agreement, and are asking whether it is worthwhile to consult counsel before signing the agreement.
Although I have not yet seen any of the agreements from this round of layoffs, I would be very surprised if they do not require that laid-off employees release substantially all their rights in order to receive any severance payment.
Before giving up your rights, it would be best to have a lawyer review any such agreement in light of your particular circumstances. Whether it is worth the cost for you is hard to say before evaluating your rights. Of course, if there are terms of the agreement that you do not understand, an employment lawyer should be able to answer your questions.
There is some general information that I can offer that might assist you in deciding whether it is worth the expense of consulting counsel.
As to employees who are 40 or more years of age, the content of severance agreements is largely mandated by law, the Older Worker Benefit Protection Act, 29 U.S.C. § 626 (f)(1). So, for example, an employer is required by law to tell you of your right to consult a lawyer.
The substantive terms of severance agreements are not dictated by law, and in fact -- since nearly all Americans live in states governed by the employment at will doctrine -- typically no severance pay is legally required. Except to the extent that there is a contract to the contrary, an employer is legally entitled to terminate an employee at any time and for any reason, or for no reason, so long as it is not an illegal reason.
IBM has typically taken the position in past layoffs that the terms of its severance agreements are not negotiable. The real question is whether you have claim against IBM.
In order to evaluate that question, I use a checklist of exceptions to the employment at will doctrine that guides my interview with the client to identify the facts that would determine whether the employee has a claim worth close investigation. My checklist items largely relate to contracts, implied contracts, and discrimination claims, but there are other items.
One thing the law requires as to an exit incentive program or an employment termination program, is that the employer provide census data relating to the ages and job titles of employees considered for termination and those terminated. The data can be analyzed to see if there is statistically significant relationship between age and termination.
If you are interested in having me advise you in this situation, you can find the terms under which I can be available on Limited Scope Representation Page of this web site. http://www.hoffcurtis.com/
Richard Cassidy