Is it legal to lay someone off because the company no longer wants to pay for benefits ? NJ?

I have been employed at a country club for two years. I was called on the phone and told I was being laid off because the company is short in funds and can't afford to keep me full-time and can't afford to pay my benefits. Nobody else lost their job. I was given no notice that this was going to happen. They offered to send me info on COBRA, but I couldn't afford it employed, how can I afford it unemployed???? Do they have the right to just lay me off like that?

Judy

Yes it's legal, sorry, not the answer you were hoping for, I know. Or they could just stop providing benefits, but apparently they can't even afford your wages.

They can lay you off for pretty much any reason, as long as it isn't because of something legally prohibited like because of your race or gender.

michr

YES......................
they are being good enough to lay you off which will make the unemployment insurance process move quickly. they could have fired you with no cause and UI would have to send out the letters and gather information before your benefits could start. a lay-off verses a termination with no cause allows you to start drawing benefits one to two weeks sooner. COBRA is expensive but it is at least an option, more then a lot of unemployed/under-employed currently have.

Reena

Yes. Employers aren't required to keep every employee they have and only let you go when you give them reason to fire you.

It is called "Reduction in Workforce" and when they tell you that you got laid off because they are "short in funds" that means the company is struggling and there is not enough work to be had.

The fact that they chose you only is irrelevant. If they needed to cut one position then it is up them to choose whom they need to cut.
It could very likely be that your job is being eliminated and you just happen to be the unlucky one.

When you lose your job you automatically lose your benefits and they are required by law to send you the COBRA paperwork so that you could keep your benefits by paying the full premium yourself.
(I know nobody can afford this... but our lawmakers decided that you should have the option of paying it yourself instead of automatically losing your health benefits)

Don't take it personally... at least you are eligible for full unemployment benefits without any delay.

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