Economic Headwinds: Navigating Layoffs with Care and Compliance

By Mary Elizabeth "Betsy" Davis When budgets tighten—whether because of a federal government shutdown, grant cuts, manufacturing slowdowns, or a dip in tourism—some employers face the difficult decision to reduce staff. If layoffs are on the table, approach them with empathy, clarity, and legal diligence. Key considerations Consider these factors in connection with potential layoffs: Confirm layoffs are a last resort: First, explore furloughs, reduced hours, job sharing, and nonessential cuts. Move to layoffs only when necessary for long-term stability. Assess WARN obligations: The federal Worker Adjustment and Retraining Notification Act (WARN) generally requires 60-days’ notice for certain mass layoffs or plant…

Read More