Companies are continuing to announce layoffs this week as companies cope with the economic damage of the pandemic and related lockdowns. Will your company be viable once this Coronavirus crisis abates? Should an employer make the tough decision to layoff employees, they MUST consider the following questions before proceeding:
- Is there a way to mitigate layoffs by having employees agree to work reduced schedules or offer voluntary leaves?
- Are you doing a temporary layoff or a permanent reduction in force?
- What happens to the employees’ benefits during a temporary layoff?
- If layoffs are required, who needs to get laid off? Everyone? Just some titles?
- Is there CBA language regarding notice/pay for layoffs (sometimes 14 days, etc.)?
- If there is CBA language, does it contain force majeure language that would eliminate notice and/or layoff pay requirements?
- What does the CBA say about order of layoffs? Is it building seniority, union seniority, classification seniority, etc.? This must be followed.