5 Key Multistate Considerations When Handling Reductions in Force
Despite some recent positive signs for the U.S. economy, many companies still face the prospect of reductions in force (RIFs), which can be challenging and involve complex processes that require careful planning and compliance with a myriad of laws and regulations. Quick Hits Documenting both the business reasons for a RIF and the objective criteria used to select employees for termination is crucial to mitigating the ris k of discrimination claims and other legal challenges. Employers may want to note the various federal and state legal requirements, such as the WARN Act and any applicable mini-WARN acts when planning and executing a RIF. According to recent figures released by the U.S. Bureau of Labor Statistics, the U.S. economy added 254,000 jobs in September 2024 as the unemployment rate dropped to 4.1 percent from 4.2 percent. Also, in September, the Federal Reserve cut its interest rate for the first time in more than four years in an effort to keep the U.S. job market strong wh...