REDUCTIONS IN FORCE

Before the layoff

Make sure it’s necessary Use committee to review

Try other measures as appropriate Wisconsin Department of Workforce Development

Review personnel policies and handbook

Review severance policies

Watch for cost issues Unemployment Payouts to workers Lost skills Administrative costs

Plan

Show necessity of reduction in force Show cost savings Show consistency in dealing with

employees Serve as documentation

Legal Issues

Worker Adjustment & Retraining Notification Act (WARN) Employers with more than 100 employees 60 days written notice for plant closing or

mass layoffs (50 ee’s or 33% of workforce) Wisconsin Plant Closing Law

Employers with 50 or more employees 60 days written notice for plant closing or

mass layoff (25 ee’s or 25% of workforce)

Discrimination laws – watch for adverse or disparate impact on protected classes

Family Medical Leave Act (FMLA) – employees out on leave may be protected unless they would have lost their jobs anyway

Uniform Services Employment and Reemployment Rights Act (USERRA) – employees on leave may be protected

Consolidated Omnibus Budget Reconciliation Act (COBRA) Allows employees to continue health

care coverage of former employer by paying the premiums

Decision Process for choosing

Identify employees for layoff Union contracts/employee handbook

may have identified process Possible criteria: seniority, merit, key

positions Notify employees

Legal requirements for advance notice Advance or not?

Benefits & assistance Follow company policy and union

contracts Can include:

Severance pay Outplacement assistance Job banks Medical coverage Counseling Retraining Wisconsin's benefits