Layoffs

Use blind process to decide who loses during RIF

10/07/2008

No one likes a layoff, especially the affected employees—who may look for a reason to sue. Smart employers can stop many baseless lawsuits by using objective, neutral criteria to select which workers will lose their jobs. That’s what happened in the following case …

Document when you first told worker of termination

10/06/2008

Employees who have been terminated don’t have long to file a complaint about alleged discrimination. Employers that suspect they might be sued can capitalize on the short statute of limitations by starting the clock as soon as possible. Here’s how …

Understand New York’s new WARN Act—it’s tougher than federal law

10/01/2008

New amendments to the New York Labor Law now mean New York employers face tougher layoff notification requirements under state law than they do under federal law. The NYWARN Act, which takes effect Feb. 1, 2009, imposes requirements in addition to those mandated by the federal WARN Act …

Halfhearted effort at bailout no excuse for failure to WARN

09/22/2008

Under the WARN Act, employers with at least 100 employees must notify their employees at least 60 days before shutting down or implementing a mass layoff. There is a “faltering company” exception for businesses actively looking for financing or an alternative to shutting down. But employers can only exercise the faltering company exception if they can show they were actively looking for money or business opportunities …

How do layoffs affect employees on sick leave?

09/12/2008

Q. Our company is planning a layoff, for which we will follow a “seniority” system to decide whose jobs are affected. When I look at our seniority list, I see that some of our current employees are out on medical leaves of absence. How should these employees be treated for layoff purposes? …

Taymark employees claim layoffs were discriminatory

09/09/2008

Four former employees of Taymark Inc., a subsidiary of Taylor Corp. of North Mankato, have filed lawsuits claiming they were laid off in June 2007 for unlawful reasons. They claim Taymark selected them for termination based on their gender, age and salary levels, retaining younger, less experienced workers in their stead …

Remember the WARN Act when making reductions in force

09/09/2008

During difficult economic times, businesses consider various cost-cutting measures—and shrinking the company’s workforce often tops the list. But failing to give employees adequate notice of layoffs can quickly turn a cost-savings initiative into a significant liability …

Survive the ‘perfect storm’ by matching pay to performance

09/05/2008

If your organization has plenty of employees but not enough of the ones with the skills you need to survive the economic downturn, you’re going to have to change the way you pay them. Make three changes to weather the tempest …

How to manage pay-for-Performance in today’s harsh new business environment

09/05/2008

If your organization has plenty of employees, but not enough of the skilled workers critical to surviving a down business cycle, you’re going to have to change your compensation plan. Three changes pave the way—finally!—for a pay-for-performance system that works.

Prepare layoff rationale before handing out the pink slips

09/02/2008

Sometimes, an employer needs to downsize its workforce for any number of reasons. Whatever the reason, document why you need to cut staff before you announce the layoffs. You don’t necessarily owe every affected employee an explanation—in advance—of why his or her job is being eliminated. But you will need a clear, coherent and rational explanation later if one of the employees sues …