By James R. Hays, Maranda W. Rosenthal, and Jonathan Stoler
As the risk of a double-dip recession looms and companies continue to adjust their workforces to adapt to the more challenging economic times, employers are being faced with making the tough decision regarding the possibility of layoffs. Workforce reductions are one of the most unpleasant events for employers to deal with and often involve both economic and emotional considerations. Layoffs can expose employers to unexpected pitfalls and disastrous legal consequences as the company tries to navigate the myriad complex laws involved. In recognition of the current economic climate and the enormous amount of work required to properly plan and execute a large-scale layoff, this article is intended to assist in identifying key issues and to suggest several best practices when implementing a reduction-in-force.
Although every company’s reasons may differ, such as a continued downturn in the respective industry or the unexpected loss of a key client or customer, nearly all workforce reductions require that the company consider all possible scenarios and consequences, develop a comprehensive strategy for identifying affected employees and engage in a thorough legal analysis.
This article was originally published in The Metropolitan Corporate Counsel. To read the full article please click here.