News & Analysis as of

Reduction of Force

Orrick, Herrington & Sutcliffe LLP

CFPB issues reduction in force, district court holds hearing and delays firings

On April 17, the CFPB issued a reduction in force (RIF) to notify employees of their release due to the elimination of their positions. In the RIF, the Bureau stated reductions were necessary to restructure the Bureau’s...more

Latham & Watkins LLP

HHS Begins Department Reorganization and Reduction in Force

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New rounds of cuts and organizational shifts for HHS staff and operating divisions could dramatically impact the healthcare and life sciences industry....more

Cozen O'Connor

Democratic AGs Challenge Education Dept Cuts

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A group of 21 Democratic AGs filed a lawsuit in federal court challenging the Reduction in Force (RIF) announced by the Department of Education (DOE). The complaint alleges that the DOE’s RIF usurps legislative authority in...more

Orrick, Herrington & Sutcliffe LLP

Congressmembers urge GAO and Fed OIG to investigate the efforts to eliminate the CFPB

On February 27, Reps. Maxine Waters (D-CA), Ranking Member of the U.S. House of Representatives Committee on Financial Services, along with Al Green (D-TX), Ranking Member of the Subcommittee on Oversight and Investigations,...more

Orrick, Herrington & Sutcliffe LLP

Executive branch instructs agencies to submit proposals regarding reduction in force

On February 26, the Office of Management and Budget (OMB) and the Office of Personnel Management (OPM) issued guidance to federal agencies on implementing President Trump’s Executive Order 14210 from February 11 requiring...more

Orrick, Herrington & Sutcliffe LLP

President Trump orders DOGE compliance and reductions in force

On February 11, President Trump issued an executive order requiring federal agencies to collaborate with DOGE to implement large-scale reductions and to curb future hiring. The multi-faceted order — which will not apply to...more

Bergeson & Campbell, P.C.

What Can Happen When Federal Career Employees Are Told “You’re Fired!”

Among the less-noticed, less-reported implications of “firing” federal employees for whatever reason (or no reason) is the process under current law and regulations that applies to reducing or eliminating programs and...more

Akin Gump Strauss Hauer & Feld LLP

Implementing The President’s “Department of Government Efficiency” Workforce Optimization Initiative (Trump EO Tracker)

The Director of the OMB Director shall submit a plan to reduce the size of the Federal Government, requiring that agencies may hire no more than one employee for every four employees that depart. Agency heads must adhere to...more

Holland & Hart LLP

Tenth Circuit Weighs in on Reductions in Force: Takeaways for Employers

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The Tenth Circuit affirmed summary judgment in favor of Spirit AeroSystems in a discrimination case related to a 2013 reduction-in-force (RIF). The plaintiffs had alleged that the company targeted older workers in a...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

5 Key Multistate Considerations When Handling Reductions in Force

Despite some recent positive signs for the U.S. economy, many companies still face the prospect of reductions in force (RIFs), which can be challenging and involve complex processes that require careful planning and...more

Fox Rothschild LLP

Conducting a Respectful RIF

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With 38% of companies expecting to layoff employees in 2024, the start of the new year has already seen the announcements of thousands of employee layoffs across all sectors. What’s more is that disgruntled employees have...more

MoFo Employment Law Commentary (ELC)

Collective Redundancies In Europe

One of the difficult realities of running a business is that companies occasionally find themselves needing to make reductions to their staff headcount, be it because of workplace shutdowns due to economic difficulties,...more

Amundsen Davis LLC

As Talk of the Economy Cooling Persists, Employers are Reducing their Workforces

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As talk of an economic slowdown persists, so have the number of layoff an- nouncements hitting the news. While the last quarter of 2022 saw the technology and financial sectors lay off thousands of workers, in 2023, this...more

Jackson Lewis P.C.

Updated New York WARN Act Regulations Address Post-Pandemic Environment, Add Employer Obligations

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The New York State Department of Labor (NYSDOL) has released amended New York State Worker Adjustment and Retraining Act (NYS WARN) Regulations that, in large part, respond to the unique issues presented during the COVID-19...more

Constangy, Brooks, Smith & Prophete, LLP

Whose text is it, anyway? Maybe yours!

Must an employer preserve business-related text messages between employees using their personal cell phones? Can a judge punish an employer for failing to do so? According to a federal judge in Texas, the answer to the first...more

Fox Rothschild LLP

Five Types of Class Action Risks Following a Layoff

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Lately it seems like you can’t go a day without seeing news of another round of layoffs affecting workers and companies across the U.S. As companies seek to cut costs, however, they should be wary of the legal risks that come...more

Amundsen Davis LLC

Terminations, Layoffs, and Separations – an Employer Refresher

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There seems to be an almost daily litany of layoffs by large corporations that instantly become media fodder. For example, McDonald’s recent layoff, widely reported to have impacted hundreds of white collar employees, comes...more

Morrison & Foerster LLP

Key Considerations for Navigating Workforce Reductions During Uncertain Economic Times

With a potential recession looming and a growing number of companies announcing significant layoffs almost daily, employers are increasingly considering reductions in force (RIFs) to weather the financial uncertainty in the...more

Fox Rothschild LLP

The Impact of Recession on Cybersecurity Programs – Beware of the trap game.

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There’s no mistake, we’re in a recessionary cycle. We can stay out of the politics and debate related to predicting the exact cause, effect, size, and timeline of the recession. Debate or no debate, we’re already seeing...more

Polsinelli

Employers Beware: Risks with Reductions in Force Involving a Remote Workforce

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​​​​​​​Employers considering a reduction in force involving remote workers may be subject to the Worker Adjustment and Retraining Notification Act (the “WARN Act”) (29 U.S.C. §2100 et. seq.) and corresponding state...more

Fisher Phillips

IRS Guidance On The Effect Of COVID-19 On Partial Plan Terminations

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COVID-19 has forced many employers to reduce their workforce through furloughs or layoffs. These reductions may cause employers to experience a partial plan termination of their qualified retirement plans, which requires 100%...more

K&L Gates LLP

K&L Gates Working Wise: COVID-19 and Workforce Reductions

K&L Gates LLP on

COVID-19 has wreaked havoc on the economic and social fabric of the United States. As more and more state and local jurisdictions are enacting stay at home policies that restrict individuals' activities and businesses'...more

Robinson & Cole LLP

Need to Reduce Staff? Consider Shared Work Programs to Lessen the Pain

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The upending of the business cycle caused by the coronavirus outbreak may force many businesses to reduce headcount and payroll. While the immediate health crisis may pass quickly, many expect the economic impact to last much...more

Rivkin Radler LLP

COVID-19 Update: NY Releases Guidance on Workforce Reduction Order

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Governor Cuomo announced on March 20, 2020, that he will be expanding Executive Order 206.7 and directing all non-essential businesses and keep all in-office staff home.  This announcement comes one day after Governor Cuomo...more

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