My wife works for a small family owned business, about 10 people total, 4 of whom are not members of the owners family. She just found out today that she is being laid off and her last day will be june 31. She is 3 months pregnant and recently gave notice to her employers of this.

The company however is doing very poorly and has already filed for bankruptcy once. The are not removing her position though, but removing other positions and replacing her with family members. In her case the families grandfather who has severe alsheimers and can not work without direct supervision at all times will be taking her job.

No other employees are being terminated, but the ownership of the business is changing hands, from the grandfather to his son. The son has already been running the business for years, but was not legally the owner.

Now, they are offering her no severance, and are terminating her insurance as of the end of her last day. Can they legally do this? Will she be able to collect unemployment as she is just starting to show, and it will be very hard to find another job while pregnant. Even if she does, she most likely won't be elligible for new insurance for 3 months.

Any advice will be greatly appreciated.

Nothing illegal has occured based on your post. There isn't a state or federal law that requires an employer to provide severence unless that employee had a bona fide contract stating so. As far as unemployment, she should file and knowing Colorado unemployement as I do, she shouldn't have a problem being awarded benefits.

The law does not say you can't be fired or laid off while you are pregnant; it only says you can't be fired or laid off BECAUSE you are pregnant. That is clearly not what is happening here; she is being laid off because they are transferring her position to a family member. As mlane says, severance is not required by any state or Federal law.