March 26, 2024
Layoffs Can Get You Into Legal Trouble
Layoffs turn people's lives upside down. The people affected did nothing to deserve being fired. Yet here they are, upended and unemployed. In doing the layoff, the organization has burnt those bridges with those employees and probably all their friends, family, and people they know. You are never, ever, getting back together. And you will have a more difficult time finding new employees the next time you need them.
Layoffs are also devastating for the employees who stay. They miss their colleagues. They hate the way people were treated. They're worried about being next. And they are looking for their next job because they are overworked and completely burnt out since half their department is gone.
I get that people are expensive. There are wages and all those pesky benefits like healthcare and paid sick leave. It adds up fast. If you need to polish up a P&L real quick, laying off employees is a tempting choice.
But it may not the be the best one. And it could end up being even more expensive if you ignore employment laws. Then again, maybe it doesn't matter because any expenses come out of a different reporting period and the long term existence of the company and its products and services don't really matter.
Layoffs are also a terrible way to enforce a return to office policy. Here's an excellent explanation of how it could backfire, along with some important legal considerations in any layoff.
Here’s the scenario: You were just told that your company needs to reduce its workforce by 10%, and it’s your job to put together an action plan for this grim assignment. But there’s a catch. The leadership team wants you to lay off all the remote workers first to hit this target. They say it shouldn’t be a problem since you’re an “at-will” employer, but you’re not so sure. You want to know the legal considerations you should make before creating your action plan — and that’s a good idea because there isn’t a one-size-fits-all solution. Here are four key questions to consider as you create your strategic plan for these difficult decisions.
While you may be able to layoff remote workers first, there are a host of legal considerations to make when conducting any reduction in force. You can prepare by taking the following steps:
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