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New Jersey courts have found that failing to have an effective anti-harassment policy may be evidence of negligence.

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What are some issues to consider in a Work Force Reduction?

REDUCTION-IN-FORCE CHECKLIST

The list below is intended to identify the general issues employers should consider when implementing a reduction-in-force.  Counsel should be consulted for more specific information on each of the issues.

□ Consider alternatives to layoff and termination (i.e., hiring freezes, reduced hours, reduced pay or benefits, offering incentives for voluntary termination, such as early retirement plans, severance plans and enhanced benefit plans)

□ Consult benefit plans, wage laws, contracts, collective bargaining agreements to determine if there are any impediments for using these alternatives

□ Is there a demonstrable economic or other business need to lay off employees or implement alternatives to layoffs?

□ Who will select positions for elimination or consolidation?

□ What criteria will be used for layoff decisions (i.e., elimination of positions, reorganization, performance reviews, merit, versatility, skill set, seniority)?

□ Remember to use objective measures wherever possible

□ Will bumping or other job transfers be offered?

□ Will the layoff breach employment contracts, employee handbooks, labor contracts, layoff policies, etc.? 

□ Is the employer’s layoff policy properly structured?

□ Will the layoff affect employees on maternity, family or other leaves?

□ Will the layoff have a statistically significant adverse impact on protected group members?

□ What RIF benefits are appropriate (i.e, severance package based on number of years of service, payment of COBRA premiums, etc.)?  Will the benefits offered be sufficient to obtain releases and waivers of claims (remember to consider the Older Workers Benefit Protection Act of 1990)?  Are they affordable?  What if the employee is terminated in the interim?

□ Remember to plan the severance agreement and release in advance to provide sufficient time for attorney review of the legal requirements for the waiver of claims.  Review the information to be provided to selected employees about the RIF program.

□ How much notice must be given to affected employees?  How much notice does the employer want to provide? 

□ How will the employer comply with the WARN Act, if applicable?

□ What procedures will be used to implement the layoff (i.e, a general meeting, by letter, individual meetings, etc.)

□ How will final paychecks be distributed? 

□ How the employer arrange for the return of company property?

□ Plan exit interviews

□ How will communication about the severance and release agreements, if any, be handled?

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