COVID-19: Navigating WARN Act Issues During These Uncertain Times

As the outbreak of COVID-19 affects the country and states, counties and cities take various measures to slow the transmission, many employers are facing uncertainty and considering business contingency measures. To the extent layoffs, reductions of hours and closures are under consideration, employers need to be

On March 30, 2020, the U.S. Supreme Court declined to review a decision from the Seventh Circuit in Leeper v. Hamilton County Coal, LLC, No. 19-1109, which held that a layoff was temporary, and thus did not trigger the 60-day notice requirement of the Worker Adjustment and Retraining Notification Act (the “WARN Act”).

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In this episode of The Proskauer Brief, partners Harris Mufson and Evandro Gigante discuss considerations and best practices associated with reductions in force.  Companies that make a business decision to reduce its staffing should consider what goals they are looking to achieve. Is it cost reduction or a consolidation of positions?  Or is it to weed out lower performing employees?  These considerations will tend to inform whether the employer decides to do a voluntary reduction in force or involuntary reduction in force.  Tune as we discuss practical tips for employers considering a RIF.

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In this episode of the Proskauer Brief, partners Steven Hurd and Patrick Lamparello discuss recent trends in reductions in force (RIFs) in financial services and some of the main reasons employers are engaging in them. These include automation of jobs or other technological developments, cost reductions, investor preferences, employee redistributions, and even Brexit has been a reason for downsizing.  So be sure to tune in as we discuss best practices an employer can engage in to carry out a RIF as well as practical alternatives an employer can consider to a reduction in force.

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Proskauer’s second Value Insights: Delivering Value in Labor and Employment Law survey is now live and we want to hear from you. Value Insights explores how in-house counsel can maximize the value they provide to their business partners and correspondingly, how they can most effectively partner with outside counsel on managing labor and employment work.