Managing Reductions In Force

Class action discrimination lawsuits frequently arise from reductions in force, also known as RIFs. Although the plan for each RIF will vary depending on the particular facts and circumstances, employers contemplating RIFs should keep the following points in mind to minimize the risk of litigation and avoid liability:

The importance of careful planning cannot be overemphasized. Effective planning includes consultation with knowledgeable legal counsel early in the process and well in advance of implementing employment terminations;

Reductions in force often implicate a myriad of legal issues such as compliance with the nondiscrimination laws, the Age Discrimination In Employment Act, ERISA, and the Worker Adjustment and Retraining Notification Act (WARN). Issues of pension eligibility, salaries, seniority, job performance, and management discretion may also arise during a RIF;