More Laid-Off Workers, More Work-Related Lawsuits
Layoffs at struggling businesses ranging from once-mighty investment banks, such as Lehman Brothers, to well-known law firms, such as Heller Ehrman, are sparking an uptick in employee litigation.
Dismissed employees at both of the dissolved firms are suing for allegedly unpaid wages and benefits, according to Reuters.
And they’re not alone: More such lawsuits are expected from dismissed workers at other companies, based on claims that they haven’t been paid what they were owed or didn’t get required advance notice that they would be losing their jobs, the news agency writes. Feeling that they now have nothing to lose by suing, dismissed workers are also more likely to bring suit for alleged violations of overtime rules and discrimination, too.
To try to protect themselves against such claims, companies increasingly are requiring terminated employees to sign releases waiving their right to sue before they receive severance, says attorney Howard Lavin. he is a partner of New York City-based Stroock & Stroock & Lavan.