I. Introduction.
Workforce reductions, whether in the form of hours reductions,
furloughs, or layoffs, are often a last resort for employers
experiencing financial pressures.1 Nevertheless, when
these actions are necessary, time typically is of the essence,
because when shedding payroll is the objective, the more drawn out
the process, the smaller will be any financial savings. But quick
decisions need not be careless decisions. The key is to thoroughly
understand the risks before making decisions that later may result
in potential liability. If these risks are too great, employers may
seek to mitigate these risks by considering a voluntary exit
incentive program, in which employees may be offered severance
and/or other benefits in exchange for releasing claims they
otherwise may assert.
