Can a company falsely tell it’s employees that they are closing down as a way to get them to leave and seek other employment?

UPDATED: Oct 1, 2022

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Can a company falsely tell it’s employees that they are closing down as a way to get them to leave and seek other employment?

I have worked with the company for a little over 2 years now. The only raise I have received was at the end of my 3 month probation period. I was told that there would be raises after every year of employment but that is not the case. A fellow employee was told the same thing. They increased our work load by assigning upper managements responsibilities to myself and the other 2 female employees but have provided no incentives or rewards even though they said they would. She told the management that she was giving them 30 days to follow through on the raises or she would be talking to a lawyer about filing an EEOC claim. The, 2 weeks later, they told us that they are closing. Do we have any rights to fight this?

Asked on September 1, 2017 under Employment Labor Law, Alabama


M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Frankly, unless these actions violated the terms of a union agreement or employment contract, they were legal. The fact is that a company can set the condtitions of the worklace much as it sees fit (absent some form of legally actionable discrimination). 

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