Legal issues in reduction of workforce

Click here to review the RIF Plan template. Why is a reduction in workforce necessary? A reduction in the workforce may be caused by several factors such as reorganization, new assignments, budget limitations, financial exigency.

Legal issues in reduction of workforce

Inhowever, Buckeye underwent a company-wide reduction in force.

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Buckeye created a "design team" to reform the organizational structure of the Company and implement a team-based leadership model that would be used going forward. The design team created a new performance evaluation system, which required at least two people with first-hand knowledge of the employee to rate the employee and cite specific examples of behaviors that supported the grade.

Three members of the design team evaluated Beck and she received an overall score of 35 points.

Legal issues in reduction of workforce

Beck was terminated from Buckeye, along with other employees. A younger, male employee with less experience replaced Beck as a hour operator. On appeal, the Sixth Circuit upheld the summary judgment decision. Noting that qualified individuals often lose their jobs as part of a legitimate reduction in force, the Sixth Circuit held "the use of subjective evaluation criteria does not by itself show discrimination, particularly in a reduction in force case.

The problem, however, was that the supervisor, undoubtedly reluctant to be the cause of anyone losing their jobs, stated all of his subordinates were good employees and placed the decision squarely back in the hands of the design committee. Instead, the Court held that in order to prove that the subjective criteria permitted Buckeye to discriminate against Beck, she needed to provide evidence to support any of the following criteria: Buckeye terminated women or older workers at a disproportionately high rate during the reduction in force; Buckeye deviated from its normal use of subjective evaluation procedures; or Buckeye used evidence which was not truthful.

Legal issues in reduction of workforce

What employers should do: Ensure that the subjective criteria being used to make an employment decision, such as in a reduction in force or promotion context, will be predictive of success in the new environment.

When using subjective criteria to make employment decisions attempt to break the criteria down as much as possible into objective components. To the extent possible, document how the individual had demonstrated the subjective character trait that you are looking for by using specific examples.

If there are interviews involved in the process, design questions and identify in advance favorable answers that will elicit answers that demonstrate the trait you are looking for. Ensure that all decision-makers and influencers have documented how they have arrived at their subjective conclusions.

Ensure that the basis for deviating from any previously established evaluative criteria can be justified and documented. Ensure, to the extent possible, evaluators are consistent from year to year. If an employee who has always received high marks, suddenly receives uncharacteristically low ratings, this may raise red flags.

Before making decisions final, have your demographics before and after the RIF evaluated to ensure that protected classes are not disproportionately impacted.highlighting legal issues surrounding the use of certain types of contingent workers.

As technology and the changing structure of work fuel the growth of the contingent labor sector, this topic is one that regulators, industry and human resources find themselves grappling with across the globe.

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Legal Case law Best practice: Restructuring your workforce. by bottom-line business issues, and achieving sought-after business results within the shortest possible time is a priority for everyone.

Consequently, the time to think through the major elements of downsizing or restructuring is. But if a workforce reduction is unavoidable, there are legal requirements you need to know about before you make an announcement.

To protect the needs of displaced workers, the federal government has enacted laws and regulations that require employers to give advanced notice of workforce .

Avoiding Legal Risks in Workforce Reductions George P. Barbatsuly, K&L Gates LLP reduction in force with only a general understanding of the goals of the RIF and how The employer should retain legal counsel to facilitate this review process. Attention ALL MCs Fall Lunch and Learn Events. To learn the latest news regarding M/Cs compensation, our legislative program, retirement and pension issues, and to share your concerns, please join us at the following FREE Lunch and Learn Sessions. Hopefully you’ll see why OMCE membership is so vitally important at this time. Some other workforce reduction questions to consider include: some of the following legal issues might be involved and if a legal review is necessary. a list of reduction in force.

Legal Issues in Reduction of Workforce Simulation More Beer Reduction in Workforce Exercise More Beer, Inc is a brew company that deals with direct marketing of various micro brew products.

More Beer profits approximately 25 million dollars a year. A workforce analysis must be done as part of the reduction in work force plan. This analysis must address all of the following issues. A “total workforce” analysis must list the name and classification of all employees in the affected organizational unit.

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