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Showing posts with the label Reductions in Force

Be WARNed: Maryland DOL Reissues Proposed Rules on Mandated Notice of Proposed Mass Layoffs or RIFs

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  On June 14, 2025, the Maryland Department of Labor (MDOL) reissued  proposed regulations  to implement the  Maryland Economic Stabilization Act , which requires employers to provide notice of a mass layoff or a reduction in force in certain circumstances. The proposed regulations are intended to provide guidance on how the MDOL plans to interpret obligations under the act and enforce the act, and the public is invited to provide comment on the proposed regulations before the MDOL issues final regulations. Quick Hits On June 14, 2025, the Maryland Department of Labor reissued proposed regulations for the Maryland Economic Stabilization Act, requiring employers to provide notice of mass layoffs or reductions in force. Maryland’s Economic Stabilization Act mandates sixty days’ written notice for mass reductions in operations, applying to employers with at least fifty employees and triggered by significant workforce reductions. The public has until July 14, 2025, to c...

What should companies do to prepare if they anticipate change and want to be ready in the event a reduction-in-force, or RIF, is on the horizon?

Reductions in force and furloughs are on the rise. Recent layoff numbers are climbing. We’re seeing some of the highest monthly totals ever recorded. If your company is considering a RIF, thorough preparation is key. Identify and document the reason for the layoff and the criteria that will be used to select impacted employees. Determine whether there will be union notice and bargaining requirements. Review severance plans, employment agreements, and offer letters to assess separation entitlements. And don’t forget about the federal WARN Act and the 13 state mini-WARN Acts, which require as much as 90 days’ notice for some layoffs. Once selections are made, consider whether a statistical adverse impact analysis is needed to identify risks. Prepare Older Worker Benefit Protection Act disclosures. Establish a process for how to deal with employees on leaves and visas. And confirm timing of final pay and PTO payouts, which may vary from state to state. Finally, have a clear and consis...

Federal Lawsuit in New York Raises Questions About Remote Workers’ Rights Under State WARN Laws

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The media companies Paramount Global and CBS Interactive, Inc., are facing a class-action lawsuit in federal court over recent layoffs, which allegedly occurred without the proper warning. The outcome of the case may shed light on when remote workers who live out of state can have standing to sue under state laws requiring advance notice before a mass layoff. Quick Hits Employees sued Paramount Global and CBS Interactive after mass layoffs in New York in 2024. Employees claim the companies did not provide ninety days’ notice under New York’s  Worker Adjustment and Retraining Notification (WARN) Act . But the companies argue they fulfilled their legal duty because the workers stayed on payroll and benefits for ninety days. Some of the laid-off employees worked remotely in other states, and the parties disagree as to whether remote workers may sue under the New York WARN Act. On September 24, 2024, about 350 employees, mostly based in New York City, were notified that their last day ...