After a lawsuit was filed by a former editor at Yahoo last week, employers are encouraged to review their own performance review systems. The lawsuit alleges that Yahoo manipulated a rating system to fire hundreds of employees without cause. Yahoo has utilized this quarterly review ranking system since 2012, and claims that the system has resulted in the termination of hundreds of poor performers. The lawsuit claims that these terminations were illegal under the Worker Adjustment and Retraining Notification Act, requiring advance notice of layoffs of 500 or more employees, as well as California state law, requiring notice of layoffs of more than 50 employees.
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