How Not to Lay People Off
Paul Hastings is learning this lesson the hard way. A few words to the semi-wise*, so hopefully your company won’t have to:
- If you need to lay people off, lay people off, but admit that you’re doing it to cut costs. Unless something drastic has happened in the last three months, don’t simultaneously insult both the outgoing employee’s work product and his/her intelligence by throwing together a few obviously pretextual, eleventh-hour performance reviews that fly in the face of every regularly scheduled performance review you provided before.
- Hell, even if you did can the employee because you weren’t happy with his/her work, ask yourself if you have a credible, face-saving way to spin this as a non-performance based, “sorry, your position was eliminated” downsizing. If such an opportunity exists, take it.
- If the person you’re thinking of laying off / shitcanning / etc. is pregnant, and hasn’t anything just about anyone would consider a hanging offense, think twice and then a third time before doing anything that will make you look like a total shithead.
- If that same person just miscarried, don’t even THINK about it.
- If, after reviewing rules 1 through 4, you are still convinced that simultaneously terminating and insulting the employee is a smart thing to do, don’t try to bribe that employee into not talking smack about you.
Last and least, if you are a famous national employment law firm, and your particular branch is located in a state that prohibits noncompete and non-solicitation agreements, don’t try to bribe that same employee into signing an agreement that violates that law, as well.[See update.]
*I’ve never really been comfortable with the phrase “a word to the wise.” After all, if the guy you’re talking to is so damned wise, why did you need to tell him this stuff? Then again, I’ll grant that any potentially good advice assumes some wisdom on the part of the hearer; if you thought he was too foolish to listen, you’d probably save your breath.
More here, here, here, here and here.
UPDATE: After re-reading the “non-compete” provision, I think it’s not a non-compete after all, but a promise not to re-apply for work there. Not a likely violation of B&P Code 16600, but a violation of common sense if nothing else. If they don’t want to re-hire her a year from now, two years from now, or whenever, that’s their prerogative, but what’s the point in contractually barring someone from even applying for a job?







