Involuntary Reduction in Force

News & Analysis as of

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

Managing Workforce Contraction During An Energy Slump: Special Considerations for Nonimmigrant Workers Affected By a RIF

Continuing our weekly "Falling Oil Prices and RIFs" series, this week's topic focuses upon immigration law issues that typically arise during workforce reductions....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

Managing Workforce Contraction During An Energy Slump: Frequently Asked Questions

Continuing the Q&A series following our previous in-house “Falling Oil Prices and RIFs: A Roundtable Overview of the Most Significant Legal Compliance Obligations” compliance seminar, this week's discussion centers around the...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

Managing Workforce Contraction During An Energy Slump: Frequently Asked Questions

As everyone knows, oil prices have sunk to a historic low for months. While that is good news for some people, many energy-related companies are now seriously considering workforce reductions and reorganizations in order to...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

Employers, Don’t Be Caught In The “Bogus RIF” Trap!

I was disappointed earlier this week to see a consultant quoted in an otherwise good article in the Wall Street Journal – “Employee Theft Often Leads Small Firms to Make Bad Choices” — as advising the “bogus RIF” strategy...more

Construction Case Law Update - January 2015

“Reduction in Force” Employment Discrimination by Federal Contractors – “In situations involving a reduction in force, a modified prima facie formulation may apply, which allows a case of discrimination to be established by...more

ERISA Section 4062(e) Significantly Reformed Effective December 16, 2014

On December 16, 2014, President Obama signed into law the Consolidated and Further Continuing Appropriations Act, which contains provisions that significantly reform ERISA Section 4062(e). The new law is meant to ensure that...more

The Fall in Crude Oil Prices: Headline Issues to Watch

Oil price movement through 2014 and into 2015 is a consequence of market fundamentals. Europe’s continued economic woes, paired with the slowdown in China’s economy, have led to a fall in demand for oil....more

The battle over 4062(e) 'facility closure' liability

Employers who sponsor defined benefit plans, or who are involved in a corporate transaction involving defined benefit plans, should be aware of developments in Washington concerning Section 4062(e) of ERISA. The Pension...more

If You Are Planning Layoffs – Here Are Five Things You Need to Know

Unfortunately, when the price of oil goes down, the employment numbers also move downward in Houston. Many clients in the oil and gas industry are either planning or considering downsizing measures, which means that it is a...more

Good Bye to Mr. Cub, the Siege of Vienna and Doing More Compliance with Less

Let’s play two! That was perhaps the most famous maxim from Ernie Banks, who died this past weekend at the age of 83. As for a sobriquet, it does not get much better than being known as ‘Mr. Cub’ from any baseball fan from 9...more

Layoffs in the Energy Sector – Are Employers Prepared?

Over the past few weeks, the media has focused intently on the oil and gas industry’s extensive layoffs. Well known energy companies have made front-page news with their announcements of their significant layoffs that have...more

Effectively Managing Workforce Contraction in Turbulent Times

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 predictions that low oil prices will extend well into 2016, such...more

Don't Let the OWBPA Put a Rift in Your RIF

Are you considering a reduction in force (RIF) that includes a severance package for employees? Are some of the employees included in the RIF over the age of 40? Before you take another step, make sure you know the...more

School District Found to Have Engaged in ‘Bait and Switch’ on Teaching Assistant Unemployment Benefits

In Tameka Gladney v. Mississippi Department of Employment Security, the Mississippi Court of Appeals reinstated a teacher assistant’s unemployment benefits finding that the district had been less than fair to her. At the end...more

The Goldilocks Paradigm In RIF Releases

Obtaining an effective waiver of claims in the context of a reduction in force, an exit incentive, or other termination program is tricky. The Older Workers Benefit Protection Act (OWBPA) has numerous requirements that must...more

Waivers of Age Discrimination Claims in Reduction in Force Cases Continue to Face Intense Scrutiny

A Federal court in Colorado recently permitted a former employee to advance an age discrimination claim despite his prior execution of a severance and release agreement after his employment ended in connection with a...more

The ERISA Litigation Newsletter - February 2014

The employee benefits issues to be considered by the U.S. Supreme Court continue to be of great significance to plan sponsors and fiduciaries. This month we review the Court's employee benefit decisions from 2013 and also...more

Guide To Redundancies And Reductions-In-Force In Asia-Pacific

Welcome to DLA Piper’s Guide to Redundancies and Reductions-in-Force in Asia Pacific! Employers across Asia-Pacific are increasingly facing short-falls in work and reductions in demand in a competitive market. Many...more

Sixth Circuit Will Not Rehear Quality Stores Decision that Severance Pay in Connection with a Reduction in Force is not Subject to...

On September 7, 2012, the Sixth Circuit Court of Appeals held in United States v. Quality Stores, Inc. that severance payments to former employees pursuant to an involuntary reduction in force are not taxable "wages" for...more

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