Reductions in Force in the US – Considerations and Best Practices
Conducting a reduction in force (RIF) is one of the most challenging and sensitive actions a company can take. They are inherently emotional, exhausting and distressing. They can also create significant legal and employee relations risks, even when conducted with the best of intentions. To mitigate potential litigation exposure and business disruption, it’s critically important to carefully plan and execute against that plan. Below are some best practices to keep in mind when conducting a RIF. Note that this article focuses on requirements for US employees. If your company is laying off employees in other countries, consult with local counsel early in the process. Employment laws vary widely across jurisdictions, and you may encounter a very different – and potentially more stringent – set of requirements for layoffs outside the US. Consider and document the business rationale First, consider whether job eliminations are truly necessary. For example, if financial considerations are dri...