The subprime mortgage crisis and related nationwide economic difficulties have caused some companies to review ways to minimize the financial impact on their bottom line. Many employers will immediately consider implementing a mass layoff or reduction in force, also known as an RIF, in an effort to adjust to the economic climate. Employers that rush to implement these options without careful planning, the advice of counsel and considering alternatives could incur the substantial expense of defending against claims of employment discrimination filed by the laid-off employees.
There are certain considerations that every employer must evaluate in planning for a layoff. When properly considered and documented, these decisions minimize potential liability to the laid-off employees, assist in maintaining the morale of those employees who are retained and asked to perform the work of those who have been let go and, additionally, help maintain the quality of service to the company’s customers or clients.
