How to facilitate legal and ethical layoffs

There has been an uptick in layoffs over recent years, both in the federal and private sectors. Some businesses are reducing their workforce to stay afloat in the current economy. Others are investing in technology, reducing the need for human employees.

Whatever the reason may be, it is crucial for any business owner to follow the legal conditions before implementing a layoff or reduction in workforce (RIF). These include the following:

Preventing discrimination in layoff decisions

Layoffs are not random. When a business decides to reduce its workforce, decisions on who to keep and who to let go typically depend on several factors, such as budget, job performance, seniority and job function.

However, your business must not make those decisions based on bias. In other words, you cannot lay off someone solely because of their:

• Race or ethnicity

• Religion

• Sex, sexual orientation or gender identity

• Disability

• Age

Furthermore, you cannot choose someone because they reported discrimination or took part in a discrimination lawsuit.

Your business is also responsible for reviewing the layoff selection criteria. It should not disproportionately affect disabled employees, older employees and others with protected characteristics.

Providing advanced notice

The Worker Adjustment and Retraining Notification (WARN) Act requires certain employers to give at least 60 days advanced written notice of mass layoffs or plant closings. It applies to:

• Employers with 100 or more full-time employees

• Layoffs affecting 50 or more employees at a single worksite

Florida has its own mini-WARN Act. Employers must give a 60-day notice for:

• Plant closures that will affect 50 or more employees for at least 30 days

• Layoffs involving at least 50 full-time employees, counting as 33 percent of the workforce

• Layoffs affecting at least 500 full-time employees

• Plant closures or layoffs lasting over 90 days

Being aware of these regulations can help protect your business against legal complaints later on. Furthermore, it can help uphold your company’s ethical standards and ensure you respect the rights of each employee.

Layoffs can be difficult and complicated. If your business is struggling with this situation, we can help. Contact us for a consultation today.