Corporate speak for a layoff is a Reduction in Force action (RIF). We just call it a layoff. In December of 2008, the Society of Human Resource Management received word from participating organizations that roughly 60% were considering layoffs in 2009.

For employees at risk of being laid off or downsized in this economy:

1. It’s important to know whether or not your employment is categorized as “at-will”. If so, your employer likely has the right to terminate your position or eliminate you to protect their financial position during a down economy.
2. Look at what options are being offered. (e.g. COBRA Health insurance benefits, a buyout of your position, state unemployment benefits, your own supplemental unemployment benefits)
3. Note that a layoff cannot be cover for an employer firing you. This falls under wrongful termination. If you feel as though this is the case you should seek legal advice.
4. Take a look at the WARN Act, which is a US labor law or an equivalent state law which covers the following.

Enacted in 1989 the WARN Act was written to protect employees from the effects of mass layoffs. By extension this act also protected communities which derived a bulk of their local economy from a single industry or a few large local employers. At the heart of the act, employers with 100 or more employees in the event of mass layoffs a sixty day notice is required. During that time, even if furloughed or asked not to come in to work,  the employer must continue to pay benefits and wages for the entire period. Though this does not apply to workers who find a new job within that period. The entire act is obviously longer and provides specific conditions under which you may or may not be covered. For more information visit Wikipedia which has extensive coverage of this item.

Potential Problem areas for those doing the downsizing:

1. If instituting a furlough program, salaried exempt employees can be forced to use accrued vacation time but cannot be paid for less than a full work week if they work any time in a work week.
2. If there is a collective bargaining agreement in place, it will need to be consulted to ensure that any changes are in compliance with it.

Sources:

1. North Bay Business Journal (CA)
2. Wikipedia.org – (WARN Act)

Related posts:

1. Surviving a Layoff
2. Tracking the Cisco News for Layoffs

See related stories: cobra, employee rights, reduction in force, warn act

This story was posted on Monday, March 16th, 2009 for the following departments For the Downsized, News from the world