RIF Right, Part II
As promised yesterday, here’s what you can do to avoid winding up on the wrong side of the law if you have to conduct RIFs or other not-so-fun downturn-related activities.
Don’t Forget to WARN. The Worker Adjustment and Retraining Notification Act (WARN) requires advance notice of a “plant closing” or “mass layoff” in certain situations. Click here for our handy WARN Cheat Sheet. Also, make sure you’re familiar with your own state’s laws. Some states have enacted WARN-type statutes and/or require advance layoff notice under unemployment regulations.
Legitimate and Nondiscriminatory. To withstand judicial scrutiny, a RIF must be based on legitimate nondiscriminatory business reasons. Make sure all RIF decision-makers can clearly articulate those reasons before you proceed. Also, the criteria used for selecting RIF participants should be as specific, concrete and consistent as possible. Multiple factors may be used, but the more subjectivity there is, the more likely it is that potentially discriminatory factors could creep in.
Severance and Release. Consider offering severance agreements in exchange for releases of claims to further reduce risk. Make sure you comply with the older worker waiver protections under the law. Check out our our ADEA Cheat Sheet for an overview.
Talk to Your Lawyer. Run the RIF plan by your legal counsel and conduct discrimination testing to make sure everything’s on solid legal footing.
Dignity and Respect. This may be the #1 factor. At all times, treat both departing and remaining employees with dignity and respect during these tough times.














