When companies restructure or downsize, employees often face uncertainty and stress about their future. In New York, there are clear laws and protections in place to provide workers with notice, prevent discriminatory layoffs, and ensure access to essential benefits. The best way to protect your rights during a layoff is to consult an experienced employment lawyer.
Your Rights Under the New York WARN Act
Workers have powerful legal protections under state and federal law. The federal WARN Act (Worker Adjustment and Retraining Notification Act) requires large employers to provide 60 days’ advance notice before mass layoffs or plant closings.
In New York, employees are covered by the New York State WARN Act, which is even stricter.
Key features of the NY WARN Act include:
- Notice period–Employers must provide at least 90 days’ written notice before a mass layoff, relocation, or plant closing.
- Covered employers–Applies to private businesses with 50 or more full-time employees.
- Covered events: Triggered when 25 or more employees lose their jobs at a single site if they make up at least one-third of the workforce, or when 250 or more employees are laid off.
If your employer fails to provide the required notice, you may be entitled to back pay and benefits for the period of violation.
Recognizing Discriminatory Layoffs
Even during restructuring, employers cannot make layoff decisions based on protected characteristics. Both federal and New York law prohibit targeting employees for termination because of their:
- Age
- Race or ethnicity
- Gender or sexual orientation
- Religion
- Disability
- Pregnancy or family status
Sometimes discrimination is subtle. If layoff patterns disproportionately affect older workers, women, or members of a particular racial or religious group, it may indicate unlawful bias. Employers often use “neutral” explanations like performance scores or reorganization needs, but patterns can reveal discrimination.
Severance Pay and Negotiation Tips
New York law does not require employers to provide severance pay. However, many companies offer severance packages as part of their company policies or to mitigate the risk of lawsuits. If you’re offered a severance agreement, it’s essential to review the terms with an employment lawyer before signing.
Most severance agreements include a waiver of your right to sue for discrimination or wrongful termination. Consider whether the payment fairly compensates you for signing away those rights. At Lipsky Lowe, we regularly represent employees in workplace disputes, reviewing and negotiating severance agreements to ensure fairness and equity.
Access to Personnel Files
Many employees don’t realize that access to their personnel files can be crucial during or after a layoff. While New York does not have a statewide law guaranteeing employees the right to see their personnel files, certain employers may provide access as a matter of policy, and union contracts may include this right.
Your personnel file may include performance evaluations, disciplinary actions, and other documents relevant to a potential discrimination claim. If access is denied, an attorney may be able to request the records during legal proceedings.
What to Do if You’re Facing Layoffs
If you’ve been notified of a layoff or believe one is coming, consider these steps:
- Request written notice–Ensure you receive official communication about the restructuring, including the effective date of termination.
- Review your rights under the NY WARN Act–Check whether your employer provided proper notice and whether your workplace meets the thresholds for coverage.
- Analyze layoff patterns–If certain groups seem disproportionately impacted, document it.
- Carefully review severance agreements–Don’t rush to sign without understanding the terms.
- Keep copies of your personnel file and HR communications–They can be critical if you challenge the layoff.
Know Your NY Layoff Rights
Restructuring and downsizing are disruptive, but they do not erase your rights. From notice periods under the New York WARN Act to protections against discriminatory layoffs, employees have legal safeguards. If you believe your NY layoff rights have been violated, contact Lipsky Lowe today for a confidential consultation.
About the Author
Douglas Lipsky is a co-founding partner of Lipsky Lowe LLP. He has extensive experience in all areas of employment law, including discrimination, sexual harassment, hostile work environment, retaliation, wrongful discharge, breach of contract, unpaid overtime, and unpaid tips. He also represents clients in complex wage and hour claims, including collective actions under the federal Fair Labor Standards Act and class actions under the laws of many different states. If you have questions about this article, contact Douglas today.