Labor & Employment Law

Ex-employee sues over Yahoo worker rating system, says it does end run around WARN requirements

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A former Yahoo Inc. editor has filed a federal lawsuit against the company, alleging that a quarterly performance review system that ranks all company workers on a scale of 1 to 5 is unfair and illegal.

Instead of providing a rational framework for evaluating employee performance, the QPR system is a mechanism for conducting mass layoffs of workers without complying with the advance-notice requirements of California and federal WARN laws, contends a federal lawsuit filed Monday in San Jose by Gregory Anderson.

His suit is significant in part because of the damages that could apply if he prevails, the New York Times (reg. req.) reports. Both state and federal law provide for per-day penalties of $500 for each day that required notice was not provided, plus unpaid wages and

Yahoo defended its rating system in a statement: “Our performance review process also allows for high performers to engage in increasingly larger opportunities at our company, as well as for low performers to be transitioned out.” Yahoo also said Anderson’s claims had no merit and that his lawsuit follows a bid for a $5 million settlement from the company.

See also: “ACLU seeks contact from Amazon workers after NY Times article describes demanding job environment”

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