Is 2023 the year of wide-spread layoffs? So far, with recession fears still looming, companies are downsizing in the new year. The tech sector began massive layoffs last quarter and are averaging 1,600 job cuts per day for 2023. Goldman Sachs just shed 3,200 jobs with Amazon, Vimeo, Salesforce and Stitch Fix right behind them. It is not just large companies who are considering layoffs. We are hearing from some mid-size and smaller clients that they are beginning to wrestle with if, when and how to trim their workforce.
No matter the size of your organization, conducting a reduction in force is difficult –and full of legal pitfalls. It is crucial to have a plan that both meets your needs and complies with federal and state laws. Before you begin any reduction in force, there are a series of questions to answer: Have you conducted a decisional unit analysis? Is there a disparate impact to a protected class? Do you have a legitimate business reason for selecting one employee over the other? Are you going to seek a release of claims?
If you are struggling to answer these questions (or are not sure what they are) we are here to help. One of the biggest risks is to make a wrong decision in a layoff. We have decades of experience assisting clients in this area. Call us at (508) 548-4888—we’d like to help during this tough time.
For more detailed information on RIFs, see our recent issue of Employment Law Corner. We can help.