Restructuring and layoffs are common in the IT industry, particularly as companies shift priorities or adopt new technologies. But when a pattern emerges showing that employees over 50 are disproportionately targeted during these changes, it may indicate unlawful age discrimination rather than a legitimate business decision. California law protects older workers from being singled out under the guise of restructuring, and identifying this pattern requires a close look at who was let go, who remained, and how decisions were actually made.
Why Restructuring Can Mask Age Discrimination
Layoffs framed as restructuring or reorganization can provide cover for discriminatory decisions, since employers aren’t required to publicly disclose the specific criteria used to select employees for termination. When older workers are let go at a significantly higher rate than younger colleagues, particularly those in similar roles with comparable performance records, this pattern can suggest that age, rather than business necessity, played a role in the decision.
Signs That Point to Age-Based Targeting
Several factors can help identify whether a restructuring effort disproportionately affected older employees, including:
- A significantly higher layoff rate among employees over 40 compared to younger coworkers in similar roles
- Comments from management referencing “fresh perspectives,” “digital natives,” or similar age-coded language
- Older employees being replaced by younger workers performing similar duties
- Selective application of new skill requirements that conveniently exclude longer-tenured employees
- Positive performance reviews for laid-off employees shortly before the restructuring was announced
Building a Strong Age Discrimination Claim
Because restructuring decisions are rarely explained in detail, these claims often depend on gathering broader patterns of evidence, including:
- A list of employees laid off, including their ages and tenure
- Performance reviews from before the restructuring for both affected and retained employees
- Internal communications discussing the restructuring criteria or rationale
- Any statements, written or verbal, referencing age, generational differences, or long-term employees
- Information about who was hired or retained in similar roles following the layoffs
What Legal Protections Apply?
California’s Fair Employment and Housing Act protects employees 40 and older from discrimination based on age, including in the context of layoffs and restructuring. When a pattern of age-based targeting can be shown, even without an explicit discriminatory statement, affected employees may have grounds for a claim addressing lost wages, benefits, and the broader impact of the discriminatory decision.
Why These Cases Often Involve Multiple Employees
Age discrimination during restructuring rarely affects just one person. When several employees over 50 are let go in the same round of layoffs, comparing their experiences and the criteria used in their terminations can reveal patterns that are harder to establish through a single employee’s case alone.
What Should You Do If You Were Laid Off During Restructuring?
Employees who believe they were targeted due to their age should gather any performance documentation, restructuring announcements, and information about who was retained or hired afterward. Connecting with former colleagues who were also let go can help establish whether a broader pattern exists.
Get Help Challenging Age Discrimination
Being laid off later in your career can be financially and emotionally difficult, especially when age appears to have played a role. PLBH helps employees investigate restructuring decisions and challenge unlawful age discrimination. If you or someone you know was let go during a restructuring that disproportionately affected older workers, contact PLBH at (800) 435-7542 to discuss your legal options.