Reductions in Force, Furloughs, and Other Cost-Cutting Measures

In these difficult economic times, employers are resorting to unique and dramatic actions to reduce labor costs, including reductions in force, furloughs, and a variety of other measures. The misery connected with these actions will only increase if there are missteps along the way which lead to legal liability in this heavily regulated area of the law. Foley Partners John F. Birmingham, Jr. and David J.B. Froiland shared their experiences of guiding employers through these difficult waters, including strategies for avoiding class action litigation.

Subjects covered included:

• Strategic options and preliminary considerations when workforce costs must be reduced
  
• WARN Act and other notice provision compliance
  
• Minimizing liability from disparate impact and discrimination claims, including class action claims
  
• Avoiding violating the salary exemption under the Fair Labor Standards Act
  
• Dealing with unions during cost-cutting
  
• Releases and promoting compliance with the Older Workers Benefit Protection Act
  
• Communication strategies