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Layoffs

WARN notice: What if employees aren’t all terminated at the same time?

01/01/2008

Q. I’ve read that 50 or more employees must be affected by a plant closing in order to trigger a Worker Adjustment and Retraining Notification (WARN) Act notice requirement. We will be closing a plant, but it will take several months before all employees will be laid off. When are we required to give the notice? …

Warn managers: Don’t promise a rehire call

01/01/2008

Tell supervisors to avoid the encouraging words, “If we have an opening, we’ll give you a call.” They’re well-intentioned but legally dangerous. Tell departing employees you’ll consider them for any openings they’re qualified for if they apply. Then explain how you post job openings and leave the ball in their court …

Use rational business reasons to justify RIF choice

12/01/2007

When employees lose their jobs, they naturally wonder why they were chosen. Employees who recently have complained about discrimination—real or imagined—often do more than wonder. They often jump to the conclusion that they have been fired in retaliation for complaining. That conclusion can lead to a lawsuit. Be prepared with solid and rational reasons why you chose the employee who got the ax …

Document experience to justify who stays after RIF

12/01/2007

In uncertain economic times, employers place a premium on flexibility. That includes being able to retain the most talented, productive and experienced employees, and perhaps terminating those with more seniority. But that can lead to discrimination claims over age and other characteristics …

Real estate job losses to further weaken state economy

12/01/2007

The quarterly UCLA Anderson Forecast predicts that accelerating job losses in construction and real estate finance will weaken California’s economy further than expected. However, unless another factor emerges, California will narrowly avoid a recession and instead will record “very weak but positive payroll growth through late 2008” …

Interstate Bakeries to close Southern California facilities

12/01/2007

On Oct. 3, the U.S. Bankruptcy Court for the Western District of Missouri approved motions to allow the managers of Interstate Bakeries Corp. to go ahead with plans to close most of its Southern California operations …

Worker notification requirements when layoffs are planned for 2008

12/01/2007

Q. We employ nearly 100 employees at a facility in San Jose. What type of notice must we provide if we are planning to lay off more than half of these employees during the first quarter of next year? …

Tropicana Casino faces yet another age discrimination suit

12/01/2007

Two former pit bosses are suing the Tropicana Casino and Resort in Atlantic City for replacing them with younger workers. The Tropicana already faces an EEOC lawsuit on behalf of 20 employees ranging in age from their late 40s to their early 70s who were laid off in January …

If layoff decision affects only a few, no notice necessary

12/01/2007

The Worker Adjustment and Retraining Notification Act (WARN) requires employers to notify workers of a mass layoff if the affected site has at least 50 employees. But the U.S. Labor Department regulations interpreting WARN specify that employees in the field belong to the office they report to. What happens, then, when a regional office employs just a handful of workers? …

No time for WARN notice? You can continue paying instead

12/01/2007

Congress passed the Worker Adjustment and Retraining Notification Act (WARN) to give employees time to adjust to an imminent plant shutdown and prepare for unemployment. Covered employers are required to give employees 60 days’ notice before shutting down operations. Good news: The 4th Circuit Court of Appeals has ruled that not giving WARN notice is fine—as long as the company continues to pay …