What should companies do to prepare if they anticipate change and want to be ready in the event a reduction-in-force, or RIF, is on the horizon?

What should companies do to prepare if they anticipate change and want to be ready in the event a reduction-in-force, or RIF, is on the horizon?

Reductions in force and furloughs are on the rise. Recent layoff numbers are climbing. We’re seeing some of the highest monthly totals ever recorded.

If your company is considering a RIF, thorough preparation is key. Identify and document the reason for the layoff and the criteria that will be used to select impacted employees. Determine whether there will be union notice and bargaining requirements.

Review severance plans, employment agreements, and offer letters to assess separation entitlements. And don’t forget about the federal WARN Act and the 13 state mini-WARN Acts, which require as much as 90 days’ notice for some layoffs.

Once selections are made, consider whether a statistical adverse impact analysis is needed to identify risks. Prepare Older Worker Benefit Protection Act disclosures. Establish a process for how to deal with employees on leaves and visas. And confirm timing of final pay and PTO payouts, which may vary from state to state.

Finally, have a clear and consistent communication strategy for impacted employees, non-impacted employees, and the public.

Even if you don’t have layoffs scheduled but want to be prepared, consider updating template severance agreements to comply with the proliferation of state #MeToo laws and recent NLRB decisions.

Remember, layoffs are rarely an emergency, and they shouldn’t be treated like one; they require lots of planning. Engage employment counsel and internal stakeholders early and often. Littler’s business restructuring practice group stands ready to help you!