Getting it right in reductions in force: how to minimize legal risks

With the downturn in the economy, scores of employers are having to make difficult decisions and lay off hundreds, if not thousands, of employees. Each layoff poses potential legal risks, and plaintiffs' counsel are poised to ride what may become a new wave of employment litigation. This articl...

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Bibliographic Details
Published inEmployee Benefit Plan Review Vol. 63; no. 11; p. 18
Main Authors Marshall, Alison B, Broas, Julie M
Format Journal Article Trade Publication Article
LanguageEnglish
Published New York Aspen Publishers, Inc 01.05.2009
Subjects
Alternatives
Collective bargaining
Computer industry
Cost control
Early retirement
Employees
Employers
Employment
Executive compensation
Human resource management
Layoffs
Litigation
Planning
Wages & salaries
Wagner Act 1935-US
Workforce planning
United States
United States > US
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Summary:With the downturn in the economy, scores of employers are having to make difficult decisions and lay off hundreds, if not thousands, of employees. Each layoff poses potential legal risks, and plaintiffs' counsel are poised to ride what may become a new wave of employment litigation. This article explores key decision points in a reduction in force (RIF) and identifies some of the precautions employers can take to minimize their potential exposure. A first step in the planning process is to consider whether all alternative expense reduction measures that can be implemented have been implemented. One alternative to an involuntary layoff is a voluntary exit program. Such programs, however, require time and careful planning. Age discrimination claims are the most common type of discrimination claims brought by employees laid off during an RIF. A critical component of any RIF-planning strategy should be developing the message and tools to be used in communicating the action internally and to the general public.
ISSN:0013-6808