Hr Law

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Final Paper

Helen Tewolde

July 11, 2007

HRM 6601

Donna Hiltenbrand


Your company is conducting a reduction in force.  A department manager has come seeking your advice regarding the layoffs he wishes to make in his department.  He has been asked to reduce the expenditures of his department by a certain dollar amount.  He feels that his options consist of terminating three of the least senior employees (thereby eliminating their three salaries to reach his reduction amount) or terminating one of his most senior employees (whose salary almost equals the three least senior salaries combined).  Obviously, he would like to keep the most employees as possible and feels that terminating the most senior employee is what he would like to do.  Plus, he points out, the company would also be able to stop paying her benefits, which are costing more because she is older and has a family plan.  His concern is that the most senior employee is also the oldest employee in the department.  She is sixty-two and will likely retire in three years.  How do you advise the manager?

The first thing I would do as Human Resource Manger is gather information on certain laws that may be violated based on the decision to terminate a senior employee. Researched has shown two laws that the manager may violate if the manager decides to terminate the senior employee based on the points that were discussed. We will be violating the Age Discrimination in Employment Act and Employee Retirement Income Security Act of 1974.

The Age Discrimination in Employment Act prohibits discrimination in employment on the basis of age and applies to individuals who are at least 40 (Alexander & Hartman, 2007). Since the senior employee is at least 40 and is in a protected class we are not able to terminate her because she is close to retirement age. Using her age as a factor in making the decision will be considered discrimination and violation of the law. You must prove that...