Conducting Layoffs and Other Reductions in Force

by Kevin P. Hishta and Margaret Santen, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., with Practical Law Labor & Employment

A Practice Note providing guidance on handling layoffs and reductions in force (RIFs) for nonunionized private employers, focusing on federal law compliance. It explores preliminary cost-saving measures, such as hiring freezes, furloughs, and reduced work hours, to mitigate the need for layoffs. Employers are advised to carefully plan RIFs and furloughs to avoid legal liabilities, including discrimination claims and loss of exempt status under the Fair Labor Standards Act (FLSA). The document highlights the importance of documenting decisions, using objective selection criteria, and conducting disparate impact analyses to minimize discrimination risks. It also discusses the implications of federal leave laws, such as the Family and Medical Leave Act (FMLA) and the Americans with Disabilities Act (ADA), and the necessity of complying with notice requirements under the Worker Adjustment and Retraining Notification (WARN) Act. Additional considerations include severance packages, COBRA coverage, and immigration obligations. Employers are encouraged to communicate effectively with employees during layoffs, offer assistance programs, and implement security measures to prevent workplace violence or data breaches. The Practice Note serves as a comprehensive resource for employers navigating the complexities of workforce reductions.