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Running head: LEGAL ISSUES IN REDUCTION OF WORKFORCE





Legal Issues in Reduction of Workforce Simulation
Jason
University of Phoenix
MBA 560
Prof. Schumacher
September 23, 2008











Introduction

FastServe Inc. is a direct marketing company, specializing in branded sports apparel. In order to serve appropriately America’s sport-crazy online shopping segment, FastServe created two online distribution channels, www.fastserve4boys.com and www.fastserve4girls.com, (University of Phoenix, 2008). In support of this new business segment, FastServe moved 10% of their workforce to process orders and prepare them for shipping.
The following paper will bring the reader up to speed on some key facts relative to FastServe, list key concepts of employment law which would affect the employment status of all five candidates for layoff (see Table 1), discuss any extenuating regulatory circumstances, justify my decisions to layoff three employees under the agency principle and finally how I balanced the legal risk of terminating individuals from a protected class against the business risk of losing valuable talent.

Key Facts

Soon after releasing their new websites and preparing their staff for online distribution, FastServe concluded that their potential clients were unable to download portions of their website in a timely fashion. Due to the lack of online transactions, FastServe would shut down their online distribution and they would be forced to downsize their staff. FastServe’s management will be deciding which three employees from a pool of five should be relieved of their duties. The two employees left will service FastServe in a new capacity.

Table 1: Key concepts of Employment Law affecting Employment Status
Employee Name...