DE Talk: QuaranDEAM Edition, Episode 1: Preparing for a Reduction in Force
General economic indicators are showing positive movement. Consumer sentiment has rebounded, experiencing a notable increase of 21.7% in January 2024, its highest level since July 2021. Inflation is stabilizing across broad...more
Seyfarth Synopsis: Seyfarth recently hosted a webinar entitled Asia-Pacific Reductions in Force: Ten Things to Look Out for, addressing the practical issues employers should be aware of when restructuring in APAC. We shared...more
Layoffs are here and with them comes an often-overlooked threat: trade secret misappropriation. Thousands of tech workers have been laid off over the last year, and 61% of business leaders say their organizations will likely...more
With economists predicting a recession in the coming year, many employers are considering downsizing their operations. In planning for and implementing such reductions, employers should be aware of the risk of litigation...more
As part of the well-publicized reductions in force taking place at Twitter, former employees and their advocates have heavily criticized the severance packages the company offered. In many cases, those offers were limited to...more
Almost three years after signing into law legislation significantly amending the state’s mini-WARN Act (officially known as the “Millville Dallas Airmotive Plant Job Loss Notification Act”) (NJ WARN), Governor Phil Murphy...more
Employers often consider five key “work streams” at the initial planning stages of a reduction in force (RIF). WARN Act and Mini-WARN Requirements - The federal Worker Adjustment and Retraining Notification (WARN)...more
Businesses across industries are reducing their workforces and implementing hiring freezes amid increasing labor costs and fears of slower economic growth. In fact, reports suggest that tens of thousands of workers could be...more
Rising inflation, increased costs of capital and the anticipation of a downturn in the economy have caused companies in many industries to begin to implement workforce reorganizations and reductions. In making plans for...more
There is no doubt that employers have a legitimate interest in succession planning. However, a recent Massachusetts Appeals Court decision underscores the importance of utilizing and communicating age-neutral criteria when...more
Under the Worker Adjustment and Retraining Notification Act of 1988 (“WARN Act”), employers with more than 100 employees are generally required to provide a minimum of sixty (60) days’ notice prior to a plant closing or mass...more
No one denies that employers confronted a plethora of challenges in 2020, and many had to make difficult decisions to reduce their workforces due to the pandemic. Such reductions in force can implicate a number of business...more
On January 4, 2020, the U.S. District Court for the Middle District of Florida ruled that neither the “natural disaster” exception nor the “unforeseeable business circumstance” exception warranted dismissal of a WARN Act...more
Workforce reductions, whether in the form of hours reductions, furloughs, or layoffs, are often a last resort for employers experiencing financial pressures. Nevertheless, when these actions are necessary, time typically is...more
The Situation: Targeted legislative and regulatory measures implemented by many EU Member States during the pandemic may ultimately prove insufficient to ease employers' burdens and prevent employment losses. The Result:...more
With the US economy officially in a recession as of June and business closures continuing due to rising coronavirus infection rates, more companies may need to conduct layoffs in the coming months. Although discharging...more
We provide a summary of the legal landscape concerning reductions in force in the following jurisdictions: Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Panama, Peru, Puerto Rico, and Uruguay. ...more
Maryland recently enacted amendments to its Economic Stabilization Act to require that an employer implementing a “reduction in operations” must provide 60 days’ advance notice to employees and others, and also provide...more
While no one looks forward to a reduction in force (RIF), it is a fact of life for many organizations today in order to meet strategic goals and business needs. Taking time to carefully plan and prepare can make the...more
On April 13, 2020, Washington Governor Inslee issued a proclamation prohibiting employers from engaging in certain employment practices with respect to employees considered high-risk under the proclamation....more
The grinding halt of the U.S. economy due to the COVID-19 pandemic, as well as the Russia-Saudi Arabia oil price war, have forced companies in every industry to evaluate workforce reorganizations and reductions....more
As the legal market evolves, there will be necessary shifts in job design, staffing levels, and skills needed to be an effective contributor. No matter how hard we try to retrain and redeploy valued employees (and we are,...more
The surge of jobless claims by 70,000 reported by the Labor Department last week and much higher numbers expected this week indicate that employers are beginning to lay off employees on a massive scale amid the COVID-19...more
Employers considering reducing their workforce, months-long furloughs or reducing employee work hours during this trying time should consider the federal WARN Act (Worker Adjustment and Retraining Notification Act) before...more
The economic repercussions of COVID-19 have been immediate and in many cases, debilitating, to American business across all industries, from food & beverage to manufacturing to healthcare. Challenges faced include...more