Reduction in Force (RIF) and Furlough Compliance

Overview

The unfortunate impact of economic stressors can result in employers evaluating changes in their workforces. Appropriately preparing management, aligning Human Resources and Legal Departments and ensuring protocol around these changes in your workforce requires experienced legal counsel to help ensure compliance, minimize exposure, and adherence to Federal and State WARN laws. We partner with employers in order to strategically evaluate and assess this process based upon their workforce size and locations to help determine their risks when needing to implement a change in their workforce. Clients trust us to help them navigate these decisions and avoid any interruption to the company’s day-to-day productivity.

Advice and Counsel on RIFs, Layoffs and Reductions in Force

We counsel employers of all sizes and industries in this area:

  • Conducting disparate impact analyses for clients undergoing layoffs/furloughs to minimize risks of discrimination claims resulting from said layoffs/furloughs.
  • Assisting clients with determining whether they have a justifiable business case for deciding whom to terminate, and ensuring that unlawful reasons are not part of the decision-making process.
  • Preparing legally-required written notices to employees regarding layoffs/furloughs.
  • Preparing legally-compliant separation agreements, in accordance with applicable states/local laws.
  • Drafting multi-state separation agreements, with consideration towards state-specific requirements for identifying state laws in releases, as well as state law requirements for releasing unknown claims, required limitations on the scope of clauses relating to releases, confidentiality, and disclosure of unlawful employment practices, state law consideration and revocation periods, and state law disclosure requirements. This includes the review of no rehire clauses, and payment of accrued unused vacation.

Select Experience

  • Advised national telecommunications conglomerate on position non-exempt and exempt reclassifications, corporate restructuring and reductions-in-force and drafting of applicable severance agreements
  • Advised professional sports team on restructuring and mass lay-offs during COVID-19 pandemic, including application of federal and state WARN Acts
  • Advised a national printing company on multi-location layoffs as well as incentive pay agreements for retained workers
  • Counseled a financial services company on office closing and resulting lay-offs, including WARN Act compliance
  • Providing numerous clients on the February 2023 NLRB McLaren decision and its impact on the inclusion of confidentiality and nondisparagement clauses in severance agreements, and whether or not to use them.
  • Counseled clients on implementing multi-state reductions on force in anticipation of sales, mergers, and changes in control.
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Professionals

Name Title Office Email
Partner Orlando
Associate San Francisco
Partner Washington, D.C.
Partner Atlanta
Associate New York
Associate Los Angeles
Associate Denver
Counsel Houston
Partner Los Angeles
Partner Atlanta
Partner Columbus
Partner Columbus
Partner Columbus
Partner Los Angeles
Counsel New York
Partner New York
Partner Columbus
Counsel Atlanta
Associate New York
Partner Columbus
Partner Los Angeles
Partner Atlanta
Partner Columbus
Partner Cincinnati
Partner Los Angeles
Partner San Francisco
Associate Atlanta
Associate Houston
Counsel Orlando
Partner Cleveland
Partner Columbus
Counsel Los Angeles
Partner Cincinnati
Partner Orlando
Associate Columbus
Associate Los Angeles
Partner Columbus
Associate Cincinnati
Associate Houston
Associate Los Angeles
Associate Orlando
Partner Denver
Associate Cincinnati
Partner Orlando
Partner Los Angeles
Partner Orlando
Partner New York
Associate Cleveland
Partner Cleveland
Counsel Philadelphia
Associate Atlanta

Experience

  • Advised national telecommunications conglomerate on position non-exempt and exempt reclassifications, corporate restructuring and reductions-in-force and drafting of applicable severance agreements
  • Advised professional sports team on restructuring and mass lay-offs during COVID-19 pandemic, including application of federal and state WARN Acts
  • Advised a national printing company on multi-location layoffs as well as incentive pay agreements for retained workers
  • Counseled a financial services company on office closing and resulting lay-offs, including WARN Act compliance
  • Providing numerous clients on the February 2023 NLRB McLaren decision and its impact on the inclusion of confidentiality and nondisparagement clauses in severance agreements, and whether or not to use them.
  • Counseled clients on implementing multi-state reductions on force in anticipation of sales, mergers, and changes in control.
  • Advised clients on compliance with the WARN Act and state mini-WARN Acts, including preparation of letters and required notifications.
  • Coordinated reduction in force of 60% of the workforce for a large corporation including strategizing timing, providing WARN notices when necessary, providing OWBPA compliant separation agreements, and preparing retention agreements for key employees.
  • Coordinated many business reorganizations resulting in a reduction in force by providing EEO analysis, severance packages, and OWBPA compliance.
  • Advised client regarding reduction in force as a result of the sale of a division of the company involving employees in multiple states.
  • Advised clients in hospitality and service industries regarding furloughs of employees during COVID-19 pandemic.

Recognition

  • Chambers USA
    • Labor & Employment – Nationwide (2022)
    • Labor & Employment ‒ California (2017 to 2022)
    • Labor & Employment ‒ Florida (2007 to 2022)
    • Labor & Employment ‒ Ohio (2007 to 2022)
    • Labor & Employment ‒ Texas (2014 to 2022)
  • The Legal 500 United States
    • Labor and employment – Immigration (2017 to 2022)
    • Labor and employment – Labor and employment disputes (including collective actions): defense (2015 to 2022)
    • Labor and employment – Labor-management relations (2015 to 2022)
    • Labor and employment – Workplace and employment counseling (2022)
    • Intellectual Property – Trade Secrets (Non-Contentious Matters) (2022)
  • U.S. News – Best Lawyers "Best Law Firms"
    • Employment Law – Management: National (2011 to 2022); Atlanta (2019 to 2022); Cincinnati (2016 to 2022); Cleveland (2011 to 2022); Columbus (2011 to 2022); Houston (2011 to 2022); Orlando (2011 to 2022); Washington, D.C. (2014 to 2022)
    • Labor Law – Management: National (2012 to 2022); Cincinnati (2020 to 2022); Cleveland (2011 to 2022); Columbus (2011 to 2022); Los Angeles (2017 to 2022); New York (2022); Orlando (2011 to 2022); Washington, D.C. (2017 to 2022)
    • Litigation – Labor & Employment: National (2012 to 2022); Atlanta (2019 to 2022); Cincinnati (2020 to 2022); Cleveland (2012 to 2022); Columbus (2015 to 2022); Houston (2014 to 2022); Los Angeles (2021 and 2022); New York (2019 to 2021); Orlando (2012 to 2022); Washington, D.C. (2015 to 2022)
  • Recognized as one of the top law firms for client service, BakerHostetler was named to the 2020 BTI Client Service 30 for the sixth consecutive year.

Key Contacts

Blog

In The Blogs

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Employment Law Spotlight
Just in Time for the Dreaded Recession – Mandated Severance Payments in New Jersey for Mass Layoffs and Closings
By Marc A. Antonetti, Amanda Van Hoose Garofalo
January 17, 2023
I Remember Something About This. Remember back before COVID-19 arrived in the United States – can you remember that far back? Way back then, New Jersey passed amendments to the New Jersey WARN Act that would require employers to provide...
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Employment Law Spotlight
Texas Court Affirms Employers' Freedom to Require COVID-19 Vaccine for Employees
By Paul M. Knettel, Peter J. Stuhldreher
June 14, 2021
COVID-19 has presented no shortage of legal questions for employers, from shutdowns and layoffs to when and how to reopen. And with COVID-19 vaccines now broadly available in the United States, some companies (especially those in high-risk...
Read More ->
Employment Law Spotlight
DOL Issues New Guidance on Several FFCRA Issues
By Gregory V. Mersol
September 14, 2020
Introduction The Families First Coronavirus Response Act (FFCRA) was enacted just under six months ago in the wake of closings prompted by the then new coronavirus pandemic. As most employers know, the FFCRA created leave rights for many...
Read More ->
Employment Law Spotlight
Increased Union Activity in the COVID-19 Era
By Todd A. Dawson
September 2, 2020
With the COVID-19 pandemic continuing to dominate headlines and potential surges expected this fall and winter, safety issues are at the forefront of many employees’ minds. These issues encompass an array of subjects, including social...
Read More ->
Employment Law Spotlight
New York Southern District Vacates Several Provisions of the DOL's Final Rule on the FFCRA
August 10, 2020
On August 3, 2020, the Southern District of New York issued a decision vacating certain provisions of the Department of Labor’s (DOL) Final Rule on the Families First Coronavirus Response Act (FFCRA). This ruling will be difficult and...
Read More ->