Layoffs

Reduced hours and WARN: Are we liable?

06/11/2009

Q. Due to the poor economy, we recently cut one of our manufacturing shift’s hours by 60%. This will continue indefinitely. We gave the affected employees two weeks’ advance notice, but we have now received a letter from an attorney claiming we should have given them 60 days’ advance notice. Is that right?

Counter bias claims with complete records

06/08/2009

These are tough economic times, and employers can’t be blamed for cost-cutting measures such as reductions in force. But before you act to trim your labor burden, prepare solid evidence showing exactly why you must cut those costs. You need a clear, written record, since those who participated in the decision-making may not be around to testify if the layoffs are challenged in lawsuits.

Control costs with furlough strategy that’s flexible, fair

06/05/2009

If your organization is limping through the economic downturn, you’ve no doubt considered cutting down your labor burden to save money. Before you resort to radical surgery—in the form of layoffs—consider a more benign cure that increases the odds of a full recovery. Furloughs—requiring staff to take unpaid time off—can reduce payroll costs without inflicting long-term damage.

Study: Layoffs harm health of those who conduct them

06/01/2009

Don’t expect a lot of sympathy from laid-off workers, but a decade-long study says people who conduct layoffs suffer from a higher rate of ulcers, sleep problems and heart trouble.

Most employers are finished with recession-related cuts

06/01/2009

A new Watson Wyatt survey found that 52% of employers have made layoffs (up from 39% two months earlier), but the percentage of companies planning layoffs fell from 23% to 13%.

New COBRA subsidy available in cases of ‘involuntary termination’: What does that mean?

05/27/2009

Under the massive new federal economic stimulus law, the American Recovery and Reinvestment Act of 2009 (ARRA), employees who suffer an “involuntary termination” have to pay just 35% of the cost of COBRA continuation health care coverage. But what does “involuntary termination” mean?

Law firm WARN Act suit gets class-action status

05/15/2009

A federal judge recently certified two classes of workers in a suit accusing the law firm Thelen, LLP, of firing them without notice. Also certified were three subclasses of workers alleging that the defunct law firm failed to compensate them for vacation time.

Chicago’s Loyola law students mastering the recession

05/11/2009

With the possible exception of employment law, the legal profession has been hit hard by the recession. Today’s law school graduates are now competing with cadres of laid-off attorneys for dwindling positions. So, Loyola University Chicago School of Law has devised a way for law students to weather the economic storm.

10 ways to stay out of legal trouble while trimming staff

05/04/2009

Even as we watch the stock market slowly recover, organizations are still laying off employees and searching for ways to cut overhead. If your organization is eliminating even one job, plan it carefully. A hasty layoff can create legal problems that cost more down the road than keeping the employee would have. Here are 10 things to consider:

Navigating the complexities of a layoff to avoid unnecessary risks