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Reductions in Force
Julie Athey
New and alarming trends are changing the way you manage your workforce and demanding your attention. These trends are too complex and critical to cover fully in a monthly newsletter. That's why we created HR Executive Special Reports.
About the Report
Whatever you call it -- downsizing, rightsizing, layoffs, or a reduction in force (RIF) -- one of the primary goals of a workforce reduction is to cut costs and become more competitive. But if done wrong, a RIF can leave your organization vulnerable to litigation and actually make your business LESS profitable. Now, this plain-English report explains the complex laws that apply to downsizing scenarios, the common pitfalls to avoid, and how to effectively negotiate the obstacles presented by each.
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Table of Contents:
1. BEFORE YOU DOWNSIZE
Evaluate the Need for a Reduction in Force
Review Personnel Policies and Handbooks
Review Severance Policies
Review Employee Benefits
2. CHOOSE YOUR METHOD FOR MAKING DETERMINATIONS
Objective Methods
Subjective Methods
Review Personnel Files
Identify Any Disparate Impact
Document Everything
Notice Requirements
3. DECIDE HOW TO COMMUNICATE WITH EMPLOYEES
Involve Upper Level Employees
Services for Terminated Employees
Establish a Grievance Process
PrepareYour Department
Take Care of Survivors
4. TAKE HEED OF WARN
What Does WARN Require?
Must You Comply with WARN?
How Do You Count Employees?
What Is an Employment Loss?
What Is a Plant Closing or Mass Layoff?
Who Is Entitled to WARN Notice?
What Must a WARN Notice Include?
Special Rules for Business Sales and Relocations
Exceptions to WARN Notice Requirements
Penalties for WARN Violations
5. BENEFITS FOR DISPLACED EMPLOYEES
COBRA Continuation Coverage
Severance Pay
Other Employee Benefits
Employee Releases
6. DOWNSIZING OLDER EMPLOYEES
Age Discrimination in Employment Act
Releases Under the Older Workers Benefit Protection Act
7. VOLUNTARY WORKFORCE REDUCTIONS
Consider Involuntary Reductions First
No WARN Notice for Voluntary Reductions
Liability Under the ADEA
ERISA Considerations
Releases and Voluntary Exit Incentives
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