Legal Question in Employment Law in California

Demotion or severance

After 29 years with my company I was given the option of a demotion or a severance pkg. The demotion would come with a substantial salary reduction over a two year period. I was given these two options on Fri morning & asked for a decision on Mon. I was told they were going from 5 mgrs to 3. One of the current 5 is taking a retirement pkg. Two of us were given the demotion or severance option. A person who has been with the company 15 less years than me is being given the 3rd job in addition to other duties. My question is this-do I have any more rights due to my longevity over the other person? I was told they were keeping the mgrs based on seniority. I have an excellent service record w/the company. The severance being offered is 6 mos. I was told they wanted me to stay because otherwise they would have given me a much larger severance. There are many others involved in the downsizing and I understand the company has to make cuts to stay profitable. But why would I be given the choice of severance or demotion instead of the job I had? The other person has no experience in my area. I hope I've given enough information for you to answer my question. Also the time frame for my answer seems short. Thanks for your time.


Asked on 11/11/06, 9:50 pm

4 Answers from Attorneys

Terry A. Nelson Nelson & Lawless

Re: Demotion or severance

Terminating or demoting you, and setting time limits for decision, is withing the power of the company, unless you can show it is somehow motivated by age discrimination. Without specific comments or conduct clearly expressing age discrimination, that is difficult, but not impossible, to show when long term [older] employees are replaced by younger [cheaper] ones. Feel free to contact me if seriously interested in pursuing such claim.

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Answered on 11/17/06, 5:41 pm
Claude Manookian Claude M. Manookian, Esq.

Re: Demotion or severance

The length of time you have been with this employer alone does not give you rights over other employees. However, if the decision to keep other employees and demote you is based on age you may have a case based on age discrimination. Proving age discrimination can be difficult depending on the availability of evidence.

Consult with a local employment attorney regarding this matter.

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Answered on 11/18/06, 3:01 pm
Carl Starrett Law Offices of Carl H. Starrett II

Re: Demotion or severance

Longevity alone is not sufficient to give you rights over any other employee. On the other hand, you may have other rights depending on factors such as your age or any employment contract you might have. You might even have a age discrimination claim.

You should really consult with a local employment law attorney. A local attorney would have more time investigate the specific facts of your situation to determine what legal remedies you might have.

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Answered on 11/17/06, 3:12 pm
Alden Knisbacher knisbacher law offices

Re: Demotion or severance

The discrimination question depends on whether the company is using valid criteria for their reduction in force (RIF.) A RIF cannot be used as a pretext to discriminate against older employees. If this were to go to court, the company would have to explain the (non-discriminatory) criteria for the RIF. You would then have to prove that the real reason they selected you was b/c of your age. The pay cut and reassignment sounds like it's discriminatory, when compared to the manager with 15 years less seniority. They can't give you two days to make the decision; not if you are going to take the severance package. The severance agreement will include provisions requiring you to give up any lawsuit you might have. There is a law called the Older Workers Benefit Protection Act, which requires that older workers be given a period of time -- several weeks -- to review a severance package which requires them to give up age discrimination claims -- and to revoke their agreement, even after they've signed. The company has attorneys drafting their documents, and consulting with them on this issue. You need to be represented as well. Feel free to contact on my private email, and good luck.

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Answered on 11/17/06, 3:27 pm


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