Considering A Reduction In Force? Some Preliminary Considerations

Employers sometimes find it necessary to make the difficult decision to undergo a reduction-in-force (RIF), resulting in employee layoffs and/or terminations. Before moving forward with an RIF, employers should develop an implementation gameplan to help minimize legal risk and ensure the process goes as planned. Selection decisions should not run afoul of Equal Employment Opportunity (EEO) and other laws relating to employee terminations. Some initial considerations include the following:

• Selection Criteria. Are there established criteria to assist in determining who will be laid off or terminated, e.g., performance reviews, job duties, position elimination, years of services/seniority? In other words, what are the non-discriminatory business reasons for the selection decisions? Is there contemporaneous documentation supporting the proposed selection decisions? In a unionized workforce, does the applicable collective bargaining agreement govern the criteria