Layoffs

News & Analysis as of

It Pays to Pay Attention to Impact When Considering Layoffs

Unfortunately, many employers from time to time face the need to restructure or downsize their workforce. While the business climate or customer needs are often the driving force in a restructuring or layoff, there are a...more

Hard Times: Employment Law and Cost-Cutting

When employers face the need to cut costs, they may have to make a series of difficult decisions affecting all aspects of their operation. Among the most difficult cost-cutting measures are those that directly impact...more

Terminated Disney Employees Allege that Outsourcing Work to Indian Workers Discriminated against American Workers

Disney continues to face legal repercussions from the company’s 2014/15 layoffs of numerous American IT workers, and the outsourcing of their functions to two Indian companies employing H-1B workers. On Monday, Dec. 12th,...more

American Apparel to Send 3,500 Workers Home: What You Need to Remember About the WARN Act

In the fallout of American Apparel's planned Chapter 11 bankruptcy, the clothing manufacturer warned almost 3,500 employees in its California locations that they may be laid off come the first of the year. Documents published...more

Your Daily Dose of Financial News

On the Hill yesterday, Fed Chair Yellen acknowledged that the recent election would likely mean changes for the economy, but she said it was “too soon” to predict the nature of that economic impact at this time (though that...more

Employment Newsletter - Fall 2016

Over the last five years, members of the LGBTQ community have had much to celebrate as traditional barriers to equality have been knocked down one-by- one by the federal government. In 2010, the Patient Protection and...more

Minimize the Legal Risks of Layoffs by Careful Consideration of Federal Layoff Laws

Layoff decisions can be difficult for employers for a number of reasons and it is important for any business to be fully informed when making such decisions. When a company makes a determination that layoffs are necessary,...more

Your Daily Dose of Financial News

The latest from the CFPB and its “Project Catalyst,” which aims to “encourage the development of innovative consumer financial products that meet regulatory requirements” [think Fintech]....more

Do You Need to WARN Your Employees?

Since 1989, the federal Worker Adjustment and Retraining Notification (“WARN”) Act has required covered employers to give written notice in advance of certain workforce reductions affecting at least 50 employees. Twenty...more

Ninth Circuit Finds ADA Claims Brought by Employee With Cerebral Palsy Can Go Forward

Facially neutral decisions that are part of routine workforce reductions may not hold up in court if the only employee to be discharged in a group belongs to a protected class. In Schwartz v. Clark County, No. 14-16365 (May...more

WARN Act and Oil Field Rightsizing: Court Finds Layoff Does Not Require Notice

In a recent case involving the layoff of employees assigned to land drilling rigs, the U.S. District Court for the Northern District of Texas limited the ability of plaintiffs to claim that multiple rigs collectively form a...more

Layoffs Without WARN-ing: How to Use the Unforeseeable Business Circumstance Exception

A recent federal trial court decision out of Delaware, In re AE Liquidation, Inc. v. Burtch, No. 14-1492-LPS (D. Del. Mar. 31, 2016), illustrates how, even in the context of a very troubled business, the Worker Adjustment and...more

Layoffs of Foreign Workers Lead to Corporate Immigration Concerns

While there is much focus in the media about the termination of U.S. employees and their replacement with workers abroad, there is little discussion about the layoff of foreign employees, currently living in the country....more

Mine Your Own Business? Three Neighboring Mines Don’t Meet WARN Act “Single Site of Employment” Test

When are sister corporations considered a “single employer” under the Worker Adjustment and Retraining Notification Act (WARN Act)? And when are their worksites considered a “single site of employment”? ...more

WARN Act Does Not Prohibit Employers From Spacing Layoffs to Avoid Notice Requirements

The federal Worker Adjustment and Retraining Notification (WARN) Act requires employers to provide 60 days advance notice to employees of certain qualifying plant closings and mass layoffs. The WARN thresholds are based on...more

Employment Law Commentary - Volume 28, Issue 2 - February 2016

Separation Anxiety: Best Practices for Employee Severance Agreements: Employers deal with employee separations all the time. Back when I was an HR manager for a major airline, when it came time for a layoff or other...more

Employment Law Navigator – Week in Review: February #5

February was a tough month for Silicon Valley unicorn, Zenefits. After losing its CEO due to “compliance issues,” word spread that additional compliance issues were rampant in both its business operations and human...more

Graceful exits

No one likes layoffs. The person getting fired may be depressed and fearful about his or her job loss, and the person doing the firing usually feels rotten about being the bearer of bad news. In a layoff situation, an exit...more

Downsizing and Firing Employees in California

Most companies will eventually face the unpleasant task of terminating an employee or group of employees. When they do, it’s critical that they follow best practices and comply with applicable laws for many reasons, ranging...more

Employment Law Navigator – Week in Review: February 2016

Equal pay and EEO-1 reports made headlines last Friday as the EEOC and the White House celebrated the 7th anniversary of the Lilly Ledbetter Act. The EEOC announced a proposed new requirement for federal contractors and...more

Not So Final WARNing: Sixth Circuit Finds That Employment Ends with Termination of Wages, Not Notice

In Morton v. Vanderbilt Univ., 2016 WL 52439 (6th Cir. Jan. 5, 2016), the Sixth Circuit recently held that, for purposes of the Worker Adjustment and Retraining Notification Act (“WARN Act”), employment does not end at notice...more

498, 499, 500! Not So Fast, Says the Sixth Circuit on WARN Act Case

This week, the Sixth Circuit weighed in on what it identified as an “unusual” case involving the seldom-seen Worker Adjustment and Retraining Notification (WARN) Act. The WARN Act requires employers to provide at least 60...more

Notice of Future Termination Does Not Constitute Immediate Employment Loss Under the WARN ACT

The U.S. Court of Appeals for the Sixth Circuit recently clarified that when an employer provides notice to a group of workers that their employment will be terminated in the future, they do not suffer an immediate employment...more

Severance Payments May be Recoverable in a Company’s Bankruptcy

Working for the Queen of Hearts is a tough gig. A disappointing quarter and she’s quick to the chopping block. And the ‘severance’ she offers – “Off with their heads!” – no thanks....more

Directors in the Twilight Zone: Administ(rate) With Caution

The recent criminal charges being brought against the former directors of City Link Limited (in administration) are a timely reminder for insolvency practitioners and directors to be mindful of their employment law...more

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