Rising inflation, increased costs of capital and the anticipation of a downturn in the economy have caused companies in many industries to begin to implement workforce reorganizations and reductions.
In making plans for adjustments to company staffing levels, employers must tread cautiously. There are numerous federal and state employment law issues that employers should consider before implementing a reduction in force (RIF) or terminating individual employees. Failure to comply with the applicable statutes, which may require as much as two to three months’ advance notice of any covered layoffs, can negate some of the anticipated savings and lead to litigation. Although employers can limit exposure to lawsuits through the use of releases obtained in exchange for benefits or severance packages, strict requirements must be met for such releases to be valid.
Focusing on RIFs, this alert provides an updated outline of the key considerations when dealing with workforce reduction issues.
This alert covers a complicated topic. It is intended to...
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