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Firing after Merger and Acquisition violates Wrongful Termination Laws?

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  • #16
    Originally posted by finphd View Post
    Thanks for the detailed reply. I am a Ph.D. student and I am curious about whether the Wrongful Discharge law affects the cross-state acquisition activities. My hypothesis is that the law makes firing difficult and thus would discourage acquisition activities. Especially for a firm in a state without WDL to acquire a firm in a state with the law. My empirical results support my hypothesis so I am here to seek some verification.

    My guess is that WDL still plays a role here, not at the initial mass layoff, but at the later firing process?
    I really must question your research. If your research shows evidence of these mysterious "wrongful discharge laws", which would have any effect at all on a merger, I would guess you are not looking at research based on the US. Montana comes the closest with the "Wrongful Discharge from Employment Act", but even then, it would not be a violation to terminate after a merger or acquisition. I am also curious what your Ph.D. is to be in as this is stuff that would be covered in intro level undergraduate courses, and should be abundantly clear to anyone who is engaged in post-graduate study.

    As others have said, every single state, the federal government, and the District have laws which restrict the reasons an employer may terminate an employee, but none say a thing about mergers and acquisitions. These laws pretty much exclusively protect employees from discrimination based on gender, disability, religion, race, etc., and due to exercising their rights under the law. The only real variation you will find is the threshold number of employees before the law becomes effective, and the exact characteristics which are protected.
    I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

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    • #17
      Ferretrick - take a look at Mississippi and Alabama. I'd list either of them as more employer-friendly than either Texas or Florida, though granted TX and FL will still be pretty high on the list!
      The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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      • #18
        Originally posted by cbg View Post
        Ferretrick - take a look at Mississippi and Alabama. I'd list either of them as more employer-friendly than either Texas or Florida, though granted TX and FL will still be pretty high on the list!
        TX has the final pay within 6 days of term law. So I think that is more employee friendly than what I have heard about FL.

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        • #19
          TX actually has some very pro employee laws, such as their garnishment laws. And they actually enforce what laws they do have. Agreed that FL is pretty much one of the lower circles of hell as far as employees are concerned. FL has almost nothing in the way of labor law, and does not enforce what very little law they do have.
          "Reality is that which, when you stop believing in it, doesn't go away".
          Philip K. **** (1928-1982)

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          • #20
            My personal opinion would be Mississippi, Alabama, Florida and Georgia in that order.
            The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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            • #21
              Thank you all for the valuable input! I really benefited a lot from the discuss. I will need to think more about the research question and reexamine the findings.

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              • #22
                If you are indeed a PhD candidate, going to an internet forum as a research tool is really sad. I'm sure your research methods class wouldn't consider internet answers (even if correct ) a good source of information.
                You need to be doing your own research.

                Signed,
                Morgana, PhD (Org Behavior, 1991)
                I find that the harder I work, the more luck I seem to have.
                Thomas Jefferson

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