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Why do they offer these buy outs at all, doesn't the US have at will employment?

Or is this just a gesture of goodwill to avoid people jumping the ship on their own?

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At will applies on a one by one basis - at a certain headcount, WARN legislation applies https://www.dol.gov/agencies/eta/layoffs/warn

And the other part is the "goodwill" you mention - if you jettison people for nothin en masse, word gets out, and make it hard to hire in the future


I think both parties probably benefit; people who are more likely to take the offer are those who have another reason to leave (unfulfilled, etc). This will benefit the company in the long run because they can eventually replace them with someone who want to join (people applying for the job).

Can go the other way though: people who've been there for a while, are motivated and back themselves to get another job will take redundancy (i.e. the people you want to keep).

People who aren't motivated and/or don't back themselves to get another job will stay (i.e. probably the people you want to get rid of)


Voluntary reductions do not have the same reporting requirements or protections that actual layoffs have.

If you lay people off, you’re on the hook for their unemployment. A voluntary buyout avoids that, and also avoids mandatory reporting for layoffs.

That’s not entirely accurate. Washington State pays unemployment, not the company. The state funds unemployment by taxing payrolls, but it’s much more indirect than most people think. Claims do affect the rate they pay next year, but the company isn’t “on the hook” for your unemployment any more than they are for your social security income.

A layoff of any real size has negative impacts to their unemployment insurance premiums and restricts their ability to file PERM for employees. Meeting those targets with voluntary separation prevents those impacts.

You can at will fire but that doesnt stop lawsuits. Most of these require signing docs to get the payout. It is a way to cut cleanly and derisk the cut



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