Termination based on 'economic downturn' w/out just cause

[AlmostJones]

Massachusetts.

Greetings! In March I was put on furlough by my company (software solutions architect). Benefits remained, but no paycheck. In the furlough notice, they made clear that this move was not based on performance, but due to the economic impact of the pandemic. On July 3rd I was notified that I would be formally terminated. Again, the company clarified that justification for the furlough and the termination was placed on the COVID pandemic and the resulting economic downturn and not individual performance. After 5 years of employment with this company, I was offered no form of severance upon termination.

I'm doubtful that I have a case, but would feel remiss if I didn't ask about it. What I'm hung up on is whether the termination was wrongful. I have a copy of my most recent performance review where I earned an almost perfect score. It is clear from my review that I was a top performer. As an employer, is it legal to base a termination on an economic downturn, ignoring past performance completely? This is an 'at will' employment agreement, so I understand this gives the employer great power, but I always thought employers still needed just cause for termination. It seems some companies used the pandemic as an excuse to clean house as it freed them to use "economic downturn" to bypass just cause.

I'd be most grateful to hear from some experts on this and thank you in advance for your input.

- Almost

 

[cbg]

Massachusetts, like every other state in the US except for Montana and even including Montana in some instances, is an employment at will state, as you have already indicated. That means that you can be legally terminated for any reason that is not expressly prohibited by law. You can legally be terminated because the day of the week ends in Y. As long as you were not terminated for a reason prohibited by Federal, state, or local law the termination is legal. It is legal in every state for an employer to terminate an employee due to economic turndown, no matter how excellent the employee's performance.

The only state in which an employer is required to have "just case" for termination is Montana, and even in Montana it's not required in all circumstances. Additionally, even in Montana economic turndown would be considered a legal termination. There is no state where the only reason an employee can be terminated is poor performance or misconduct.

Sorry, but this is quite a legal termination and not anything even close to resembling wrongful.

Signed, an HR professional in Massachusetts

 

[adjusterjack]

In March I was put on furlough by my company (software solutions architect). Benefits remained, but no paycheck.

Furlough with no paycheck qualifies you for unemployment compensation. Did you file?

If you haven't, file now. Under the Covid19 unemployment compensation rules the benefits (I think) are retroactive to the date of furlough.

 

[cbg]

Thanks, Jack, I meant to mention that and forgot

 

[adjusterjack]

Always happy to help.

 

[AlmostJones]

Thank you both. This is the feedback I was expecting. I felt compelled to ask, however. I have been collecting UI throughout the furlough and am actually starting a new job next week. So, all is well. I'm grateful for your prompt and detailed responses.

 

[cbg]

I'm curious. Did you actually believe that an employer would be required to continue to employ people he could not afford as long as they were performing well?

Not being abrasive - just asking out of sheer logic

 

[AlmostJones]

Hi cbg,

No, I didn't expect the company to continue to employ people they couldn't afford. The fact is, the company had been doing quite well at the time of my furlough (early March). The 'economic downturn' was speculative. For good reason, I suppose. My main concern was around furloughing and subsequently letting employees go w/out any performance basis. I had 5 years of A+ performance reviews and know for a fact that I was not even close to being the weakest link, so the fact that I got furloughed and then terminated is a head-scratcher. One would think even if they could not afford their employees, they would have eliminated the lower performing employees first.

So, I was wondering if there was the smallest of chance, by producing my years of positive performance reviews, I might have some leverage. I don't believe I do, and that is why I mentioned it was a slim chance at the outset, just wanted some expert confirmation and I believe I got that.

Thanks so much for your feedback.

 

[cbg]

Thanks for the clarification. Good luck to you in your new position.