Involuntary Reduction in Force

News & Analysis as of

Brexit Update: UK Employment Law Implications

In Depth - What laws will change now? - None. The United Kingdom will continue to be an EU Member State until procedures are completed for exiting the European Union. This is likely to be a long process that...more

What GCs Need to Know About Reductions in Force

Reductions in force (“RIFs”) are group terminations, usually driven by the financial condition or business needs of the employer. An employer’s General Counsel, even though responsible for protecting the employer from legal...more

Effectively Managing Workforce Contraction in Turbulent Times - Part 2

The dramatic drop in the price of oil is forcing many energy-related companies to reevaluate their operations and consider steps to trim their costs. With recent developments in the industry and predictions that low oil...more

Employee Separation Agreements – A Refresher (The Sequel)

In our last post on this topic, we reviewed the essential elements of a valid employee separation agreement that includes an employee’s release of claims against the employer (i.e., the agreement must be made knowingly and...more

Is an Offshore Rig a Single Site of Employment Under WARN?

A federal judge in the Eastern District of Louisiana recently issued an important ruling for oil field employers conducting layoffs. In Voisin v. Axxis Drilling, Inc. (October 21, 2015), the court held that for the purposes...more

An Easing of Brazil’s Restrictive Labor Laws? Only Time Will Tell

Brazil’s troubled economy has been making global headlines for the past few months. After five years of growth, understood now to have largely been fueled by China’s seemingly insatiable hunger for commodities, the economy...more

Planning for a Possible Government Shutdown: Labor and Employment Issues for Government Contractors

With the federal government funded only through Sept. 30, 2015, unless Congress acts quickly, there is a reasonable likelihood of another government shutdown beginning Oct. 1, 2015. The looming shutdown will create...more

Double-Bagged: Governor Signs Second Piece of Grocery Worker Retention Law

Monday, Governor Jerry Brown signed into law AB 897, a “clean up” bill he requested to address an omission in AB 359, which Governor Brown had signed into law on August 17, 2015. This legislation, effective January 1, 2016,...more

Be Global - July 2015

The UK Government has now published its plans for when radical new transparency in supply chain reporting comes into effect, brought in by the Modern Slavery Act. As from October 2015, assuming timings are kept in the...more

A Reminder to Employers That FLSA Claims Cannot Be Waived in Most Circumstances

When an employer signs a general release of claims with a former employee, it expects that the agreement and the consideration provided will prevent future legal claims. However, certain actions, such as Workers’ Compensation...more

How Might Your Company be Affected by West Virginia's Employment Law Changes? [Video]

Several bills affecting employers in West Virginia were brought before the 2015 Legislature, including bills relating to discrimination, prevailing wage, wage payment issues and more. Which ones passed, and how will they...more

Appellate Court Confirms Group 2 Teachers Subject to RIF Have No Recall Rights

Last week, the Illinois Appellate Court’s Second District held that a teacher subject to dismissal based on a reduction in force (RIF) did not have recall rights because she was in RIF Grouping 2, and that the school district...more

Lay Off the Lay Offs! New Regulation in China Seeks to Limit Mass Redundancies

As business needs and strategic objectives evolve, multi-national corporations commonly restructure their operations, often requiring significant numbers of employee terminations. In China, the current legal scheme for mass...more

California Confectioner Defeats Worker’s Age Discrimination Claim

Armenta v. Morris National, Inc., No. B255575 (March 27, 2015): Discrimination claims often ensue after a reduction in force (RIF) because laid off employees second-guess management’s selection process. However, as seen in a...more

FCPA Compliance and Ethics Report-Episode 153-Doing Compliance in an Economic Downturn [Video]

The energy industry is in turmoil from the drop in the price of oil from $100 down to around $50 per barrel. Many energy companies have laid off up to 30% of their workforce. What can you do from the compliance perspective...more

From Hiring to Firing: A Basic Guide To The Japanese Employment Law Life Cycle

Hiring: As a general rule, employers in Japan can freely determine the person they would like to hire as an employee, provided that discrimination on the basis of certain protected categories is not permitted. Employees...more

2015 Employment Law Issues Tournament: First Round Results and Recaps

This past weekend, while college basketball teams across America finished up their conference tournaments, 64 employment law issues played in the first round of our tournament, and boy did it live up to the hype. Filled with...more

PBGC Moratorium on Enforcement of 4062(e) Ends

The PBGC has announced that it will not continue its moratorium on enforcing ERISA section 4062(e) events. This announcement comes following the changes to section 4062(e) that were made under the Multiemployer Pension Reform...more

New Plant Shutdown Rules for Defined Benefit Retirement Plans

The 2015 omnibus appropriations bill (the "Omnibus Bill"), signed by President Obama on December 16, 2014, made significant changes to the "substantial cessation of operations" rules (also known as the "plant shutdown" rules)...more

Potential Shareholder Liability Arising From Subsidiary WARN Act Violations

When a company begins experiencing financial difficulty, shareholders often ask whether they may be liable under the Federal Worker Adjustment and Retraining Notification (“WARN”) Act for violations by the company. When the...more

Business Litigation Alert: "Legal Considerations During Massive and Quick Layoffs"

Class Action Lawsuit Recently Filed Against Drilling Company for Alleged WARN Act Violations - The Worker Adjustment and Retraining Notification Act (“WARN”) requires certain companies who conduct large and quick...more

New Coke and Technological Solutions as a Response to the Economic Downturn

Earlier this week, Donald R. Keough died. He was the leader of Coca-Cola, who pressed for and introduced the infamous New Coke to the world in 1985 and then the return of the original formula just 10 weeks later. Since I was...more

What is an 'establishment' for collective redundancy consultation purposes?

The Advocate General has given a preliminary opinion in the case of USDAW & Wilson v Woolworths and others (“the Woolworths case”) on the question of whether there is a requirement to aggregate the number of employees across...more

Tread Carefully When Implementing a Reduction in Force

With recent price drops in the oil and gas industry it is likely that reductions in force (RIFs) are looming on the horizon. But employers need to tread carefully when implementing any RIF, as it can raise thorny issues under...more

A WARN Case Study: Are Workers on Layoff “Employees” and the Hidden Dangers of Exposing Controlled Groups to Liability

Last week the U.S. District Court in Cleveland issued a decision that, once again reminds us in two ways how devilishly tricky the Worker Adjustment and Retraining Notification (WARN) Act can be when determining what is a...more

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