Question 2 (10 points) Little Tots Toy store is in the business of selling speci

Question

Question 2 (10 points) Little Tots Toy store is in the business of selling specialty toys for children. With the growth of Amazon and other online retailers, Little Tots has been experiencing a steady decline in business. Although they have a constant flow of people coming to their store Little Tots is finding that customers are simply looking for ideas and then going on Amazon to find it at a cheaper price. As a result, Little Tots has determined that it has to layoff 5 of its 10 staff members. Your friend owns Little Tots and asks you whether they face a valid law suit if they lay off 5 employees. In responding to the owner of Little Tots be certain to state the legal rule and how that legal rule applies to the facts presented. 80 8 9 0

Explanation / Answer

Layoffs are governed by labor laws and regulations that protect both the employer and the employee. Employer is required to provide advance notice of layoff. To protect your business from lawsuits, you must have a justifiable business reason for lying off workers based on their job duties, not on their characteristics as individuals. Federal laws affect businesses with 15 or more employees. State laws vary and sometimes affect companies with fewer than 15 employees. The only legal obligation to the terminated employee is to pay all salary earned up to and including the termination date, plus any accrued vacation time. There is no legal requirement to give any severance to employees

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