Posts Tagged ‘layoffs’

Layoffs in a Weak Economy – Consideration #2 – The WARN Act

Wednesday, June 3rd, 2009

Yesterday we discussed alternatives to laying off staff. If you have exhausted alternatives and are forced to downsize, be sure to educate yourself on the myriad of laws that can affect your termination decisions. One of the most important federal laws governing layoffs is WARN – the Worker Adjustment and Retraining Notification Act.

WARN applies to organizations with 100 or more full-time employees or 100 or more employees who regularly combined total of 4,000 hours (non) overtime in a week. WARN requires employers that fall under the act, to give employees, state and local officials a 60 days notice to mass layoffs or plant closures that are expected to last for at least six months. According to the law, mass layoffs are defined as a 33 percent reduction in the workforce or the layoff of 500 employees within a 30-day period.

WARN further requires employers of unionized employees to give the union 60 days’ notice when any of their members will be laid off. Nonunion employees must receive individual notice, which may be included with the employee’s paychecks or mailed to them. In addition, some states have laws similar to the WARN, those laws may have additional requirements.

Be sure to familiarize yourself with this important law. If you are concerned with your ability to remain compliant, consider the support of a Human Resources Consulting firm to help guide you and assist in maintaining your compliance.

Layoffs in a Weak Economy – Important Considerations before Downsizing

Tuesday, June 2nd, 2009

California businesses received a glimmer of hope in these difficult times as the state unemployment rate FELL in April to 11%, down slightly from an all-time high of 11.2% in March. Despite this good news, layoffs continue at record pace, and employers must be well informed to avoid making termination mistakes. In our first post, we would like to highlight some key points employers must consider before downsizing.

Consideration #1 – Alternatives To Downsizing:
There may be other alternatives to saving money during a challenging economic time.  Consider the following:

  1. Freeze new hire positions, pay or bonuses
  2. Reduce salaries, fringe benefits, or 401 (k) matching
  3. Reduce work hours or adopt alternative work schedules
  4. Make selective, performance-based terminations
  5. Provide incentives for early retirement
  6. Telecommuting
  7. Job Sharing

These cost-cutting options will allow the organization the ability to retain talented employees who are familiar with the goals of the organization, while not being placed in the position to hiring and training brand new employees once the economy bounces back. If effectively communicated, employees will appreciate an organization that works diligently to look for alternatives to downsizing.