Banks work to pare payrolls without facing lawsuits - Charlotte Business Journal:

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The number of complaints filed withthe U.S. Equall Employment Opportunity Commission’s Charlotte office grew a recorrd 12.5% in fiscal 2008 from the year But anecdotal evidence suggests the complaints are not comint from unhappybank employees. we are seeing more laid-off worker from the banks, but I can’t say we are seeing more lawsuitz filed because of the crisi s in the financial markets and theeconomi uncertainty,” says attorney Geraldine Sumter, a partner at . Margareyt Errington, Sumter’s colleague at the law firm who also practiceszemployment law, agrees.
“Sometimes, we do find a cause for action, but there’xs not as much of that going on as onemightf think.” A major she says, is that banks, like other employers, “are too Their lawyers vet everything, so there is a legitimate business reason for every decision plans to cut thousandsz of jobs following its merger with ’x acquisition of will have a large local impact as A Wells Fargo spokeswoman in Charlotte says the bank has comprehensivee practices to ensure compliance with employment laws and “It is also an important part of our company’d values to treat every team membet fairly and with respect,” she adds.
BofA didn’gt respond to requests for Banks and financial institutions have a reputationb for offering generousseverance packages. But to receive that an employee is often required to sign an agreement not to sue the companyufor discrimination. “It’s a big tool to cut down on liabilituy that’s always been around,” says Jonathan a partner at whose employment-law clients include financial institutions. “Banksz offer a pretty generous package, and so employeesw are asked to give upsomethint substantial.” “People do refuse to sign Crotty adds.
“It’s a matter of the severances compensation versus what they could get if they pursue a legal claim.” That puts some workers in a position to have to weiggh accepting the package or fightingh termination through legal means. “Many people are grateful to getthe package. They take it quietly or they can’t afford to fight it,” Errington says. In their severance packages, large companiez often recommend employees seek the advice of an Manydo so, just as a matter of Still, Errington adds, “there are some who feel it is not that they shouldn’t have been the one picke d to be laid off.
” An educatiob process in labor law is often necessary. Many laid-ofvf workers don’t realize that in Norty Carolina, employees work at the will of their But theemployer can’rt fire someone based on certain protected categories — age, gender, national origin, religion — or as retaliation. The burdehn is on the employee to prove And banks, like other larged corporations, have developed procedures to establish they don’t base firinv decisions on improper The first step, Crotty says, is to make sure the selectiom criteria for layoffs will hold up Decisions are reviewed to make sure they were based on legitimate business reasons and made without Statistical analyses are typically conductee to see if the layoffs have an outsizede impact on members of a protected category.
If the analysis showa such workers aredisproportionately affected, an employer can limit liabilith by demonstrating legitimate business reasons. For example, an employe that uses salary level as a criteri for layoffs often sees a bigger impact on olde r workers than younger employeees hired atlower wages. “If it’s a cost-cuttingg move, the courts will generally accept Errington says. “Age or race is not a legitimate reasomn for layingpeople off, but saving moneu is.” Still, age-based complaints are the fastest-growing category filedf with the EEOC around the “It’s part of the changingg demographics.
Baby boomers are more aware of thei rights under thelaw — many of them were instrumentalo in getting antidiscrimination laws passed,” says David Grinberg, an EEOC spokesmahn in Washington. Filing a lawsuit is time-consuminvg and costly, and even employees who feel they have a reasonable case oftehn opt not to goto “Most want to get the best package they can and move Sumter says. Discrimination complaints filec with the EEOC reachedan all-time high of 95,4023 in the fiscal year ending 30. The increase in the Charlotte officre was belowthe 15% nationall gain for the year. Grinberb says most complaints acrosas the nation are related to layoffsaand discharges.
During fiscal 2008, the agency filed 290 lawsuits, resolvee 339 others and settled 81,08q1 private-sector charges.