Law 531 Week 4

REDUCTION OF WORKFORCE

1

Legal Issues in Reduction of Workforce

Business Law LAW/531PR

University of Phoenix

March 10, 2015

REDUCTION OF WORKFORCE

2

Legal Issues in Reduction of Workforce

One of the most challenging resources to manage in today’s business environment within

an organization is the human capital. ). In order to create a balance among the employer and the

employee and protect them against wrongful termination, PR 80 Act was created. The Title VII

of the Civil Rights Act of 1964, created an organism to protect the employees against

discrimination, The Equal Employment Opportunity Commission (EEOC). The EEOC protects

the civil rights of the U.S. Workforce and ¨it is responsible for reinforcing federal laws that make

illegal to discriminate against a job applicant or an employee, because of the person´s race, color,

religion, sex, national origin, age and disability¨ (U.S Equal Employment Opportunity

Commission, 2014).

FastServ, Inc. is a multimillion dollars direct marketing sports apparel company. They

recently expanded their distribution channels to include internet sales to attract boys and girls

from the Generation Y segment. This expansion represented an allocation of 10% of the total

people employed by the company. FastServ has analyzed this new venue and unfortunately total

investment in technology needed to be competitive is this channel is not viable. The COO of the

company has ordered to perform a workforce reduction and the Human Resources has provided a

list of five possible persons to be terminated. The purpose of this paper is to discuss different

employment encounters including a simulation and two additional scenarios, where laws are

applied protect both employers and employees with respect to workforce reduction or

termination.

Legal Encounter 1 – Reduction of Workforce

The Vice President of Human Resources Department for FastServ has provided

the Human Resources Manager (HRM) a list of five...