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In New York, employers have a broad latitude when it comes to terminating employees. Fundamentally, this means that an employee can be terminated for any reason โ or no reason at all โ as long as it doesn't break the law.
Employees can be terminated for reasons including but not limited to dishonesty, theft, chronic tardiness, or disruptive behavior. However, you cannot legally terminate an employee based on discrimination of their sex, creed, race, nationality, disability, union status, military status, or place in another protected category.
Protecting against wrongful termination claims in the hospitality industry requires special considerations based on whether the establishment operates in a unionized or non-unionized environment.
In Unionized Settings:
In Non-Unionized Settings:
Unlike many European countries where severance pay is a legal requirement, and certain states like California that have specific notice requirements, New York doesn't mandate severance pay for terminated employees in the hospitality sector.
In unionized environments, severance pay is often outlined in the union agreement. Meanwhile, in non-union settings, if an employer's handbook or policy states that severance will be provided โ for example, two weeks' pay for each year of employment โ the employer should adhere to this policy.
Inconsistently applying such a policy, especially if it leads to discriminatory outcomes (e.g., based on race), can expose the employer to legal risks. However, it's essential to note that while discriminatory practices in providing severance can lead to legal actions, there's no overarching legal requirement in New York for employers to provide severance pay in the first place. For more information on Wrongful Termination Claims Against Employers, an initial consultation is your next best step.
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