• Alternatives To Layoffs May Reduce The Risk Of Claims
  • When Layoffs Are Unavoidable, Proper Planning May Reduce Risk Of Employment Disputes
  • Planning the RIF.
  • Making key policy decisions – how to select among employees.
  • Strive for an objective comparison of employees where job qualifications and skills are considered in making reductions.
  • Prior to implementing a RIF, factors militating against the selection of certain employees should be considered.
  • Employers can attempt to limit their potential liability by obtaining general releases from employees affected by a RIF, in return for enhanced severance benefits or other valuable consideration.
  • Wherever possible, outplacement services should be offered to assist displaced individuals in obtaining subsequent employment.
  • Employees affected by a staff reduction should be advised of the RIF in as professional and supportive a manner as possible.
  • After the implementation of a RIF, remaining employees must be enlisted as partners committed to future growth.
  • Workforce reductions provide unique opportunities for reorganizing and streamlining operations.
  • Notice Requirements Under The Worker Adjustment And Retraining Notification Act
    • WARN applies to employers that have, nationwide:
      • 100 or more employees (excluding part-timers); or
      • 100 or more employees (including part-timers) whose total weekly work hours (excluding overtime) are at least 4,000 hours per week.
    • WARN requires an employer to give 60 days written notice, as described by the Act and Department of Labor regulations, of a “plant closing” or “mass layoff” to:
      • All affected employees (including supervisors), OR if the employees are represented by a labor organization, the international body of the union; AND
      • The State dislocated workers unit and the chief elected official of the local governmental unit where the affected facility is located.
    • A “plant closing” is defined as:
      • A permanent or temporary shutdown of a single site of employment, or of one or more facilities or operating units within a single site of employment.
      • The shutdown results in an employment loss at the single site of employment during any 30-day period (this period is extended by WARN and the Department of Labor Regulations to 90
    • A “mass layoff” is defined as a reduction in workforce which is not the result of a plant closing; AND
      • Which results in an employment loss at a single site of employment during any 30-day period (this period is extended by WARN and the Department of Labor Regulations to 90 days), for at least 50 employees (excluding part-timers and employees who have not suffered an employment loss), if they comprise at least one-third of the workforce at the single site of employment; OR
      • Which results in an employment loss at a single site of employment during any 30-day period (this period is extended by WARN and the Department of Labor Regulations to 90 days), for at least 500 employees (excluding part-timers and employees who have not suffered an employment loss).
    • Limited exceptions to the 60 day notice requirement.
    • State and local notice requirements