Amsterdam, NY asked in Business Law and Employment Law for New York

Q: Are there laws requiring companies to list terminations correctly if outsourcing positions?

recently a hospital has taken its IT staff and changed them to another organization. One team had to train staff in another country and once this was done, they were terminated once the training was completed and then on their terminations, it listed the reason as downsizing instead of outsourcing.

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1 Lawyer Answer
James L. Arrasmith
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A: In New York, there are no specific laws that mandate how a company must list the reasons for termination on employment records, particularly in the context of outsourcing. However, there are laws that require employers to provide truthful information about the reasons for termination. If an employer lists 'downsizing' as the reason for termination when the true reason was outsourcing, this could potentially be challenged, especially if it impacts the employees' rights or benefits. For instance, the way a termination is characterized can affect eligibility for unemployment benefits.

Employees who believe they have been misrepresented or treated unfairly in their termination might have grounds for a legal claim, depending on the circumstances. It's also worth noting that companies must adhere to the terms of any employment contracts or collective bargaining agreements, if applicable. Employees affected by such situations should consider seeking legal advice to understand their rights and explore potential remedies. An attorney can provide specific guidance based on the details of the case.

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