An Analysis of Employment Discrimination Claims Associated with Layoffs‪.‬

Furloughs are on the rise in the U.S. For the first time in more than a decade, most major employers reported layoffs in the 12-month period ending in June 2001 (Bureau of National Affairs, 2001, p. 1101). Prudent employers are hiring lawyers and statisticians to examine the impact of their proposed layoffs on women and other protected minorities. The authors examine actual employment discrimination claims filed after layoffs and present their findings as challenges that employers face when managing reductions in force. Smart managers will avoid the occurrence and perception of discrimination during layoffs. Managers have ethical and practical interests in understanding patterns in employment discrimination claims. Those who want to create a discrimination-free workplace need to know the characteristics of employment discrimination associated with layoffs. Characteristics can highlight the most common perceptions of discrimination, and thus help managers intervene to prevent such perceptions. Moreover, resulting claims can be costly whether or not managers have legally discriminated when laying-off employees. To reduce costs, managers need to know where to devote extra attention and careful communication to reduce even perceptions that layoffs are discriminatory.