Submitted by Anonymous on Mon, 02/08/2010 - 17:36
Several fulltime employees in a retail establishment had their hours cut back due to a reduction in sales by the company. Their fulltime benefits were kept intact. Now the employer is considering eliminating their benefits and treating them as part time employees. Is this legal? Does the employee have any recourse?
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Editor's Response
Sorry about your situation, but questions like this (in the abstract without a lot of details about the relationship) are difficult to respond to. It sounds like you are talking about at-will employees (no contract). If that is the case, and unless there is some other more exotic theory that the employees can rely on (see below), the employer is free to fire the employees or change the terms of employment for any non-discriminatory reason. That is the general answer. But, based on your unique situation, there may be other answers to the question. For example, Massachusetts courts have help that an employee handbook can form the basis of a contract between employer and employee and may limit the employer's ability to fire or to change the status of an employee. Also, any benefits that have already accrued, such as vacation time, cannot be taken away. For more information about the nature of at-will employment, visit our MA Employment Law Discussion Forum. If you have specific questions, you can also try calling the Massachusetts Attorney General's Fair Labor hot-line at 617-727-3465. Good luck.