The Economic Times News

Boss fires employee without explanation, company ends up paying 5X the salary it tried to save

A long-serving employee was fired without explanation and quickly replaced with a lower-paid hire, a move aimed at cutting costs. The decision backfired when the former employee filed a legal case over misclassification and unpaid overtime under US labour law. The company chose to settle rather than go to trial, paying additional compensation and legal fees that pushed the total cost to more than five times the salary savings it originally sought.