I see no grounds for a lawsuit. First, there is no cause of action for nepotism, and there is nothing unlawful in the private sector about hiring relatives and spouses. Second, wrongful discharge is a cause of action that is available only in limited circumstances, such as, for example, where the employee is fired for whistleblowing.
Good luck to you.
Michael S. Haber is a New York attorney. As such, his responses to posted inquiries, such as the one above, are limited to his understanding of law in the jurisdiction in which he practices and not to any other jurisdiction. In addition, no response to any posted inquiry should be deemed to constitute legal advice, nor to constitute the existence of an attorney/client or other contractual or fiduciary relationship, inasmuch as rendering legal advice involves the ability of the attorney to ask appropriate questions of the person seeking such advice and to thus gather appropriate information. In addition, an attorney/client relationship is formed only by specific agreement. The purpose of this answer is to provide the questioner with general information, not to outline specific legal rights and remedies.
I concur in Mr.Haber's analysis. From the facts that you have given it seems that you work for a company that has been up and down in the marketplace and all of the events that you describe are a result of the company's efforts to manage itself rather than decisions about you or your performance. Except on issues of prohibited discrimination not raised by anything in your recounting of the facts, the law does not tie employer's hands in the effort to successfully compete in the marketplace, and employees have no immunity from the kinds of changes that are driven by legitimate business needs.
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