Mitigating the Risks of Reductions in Force: Lessons from The Employment Law Counselor

In the latest episode of The Employment Law Counselor, hosts Victoria Fuller and Laura Corvo, alongside guest speaker Will Raven, delve into the complexities surrounding reductions in force (RIF) and the legal considerations employers must navigate. Here are some crucial takeaways from this insightful episode:

Importance of Advance Planning and Legal Counsel 

One major takeaway from the episode is the necessity for employers to be proactive rather than reactive when it comes to workforce reductions. Victoria underscored the importance of involving legal counsel early in the process to identify and mitigate risks, ensuring all steps are compliant with applicable laws and regulations. This approach allows for better management of potential legal challenges that may arise from an RIF.

Thorough Documentation is Crucial

The hosts emphasized that impeccable documentation is vital for defending against potential claims. Employers should maintain detailed records of criteria used to determine which employees are affected, ensuring that these criteria are applied consistently across the board. Proper documentation serves as a first line of defense in case of legal scrutiny, reducing the risk of discrimination and wrongful termination claims.

Disparate Impact Analysis

A key point discussed was the importance of performing a disparate impact analysis to ensure that the RIF does not disproportionately affect any protected class of employees. This involves a detailed statistical review of the affected and unaffected workforce segments to identify any unintentional biases. Addressing these biases proactively can help avert discrimination claims and ensure fair treatment across the organization.

Compliance with Federal and State WARN Acts 

Compliance with the Worker Adjustment and Retraining Notification (WARN) Act, both at the federal and state levels, is another critical area of focus. Employers must be aware of and adhere to the notification requirements to avoid substantial penalties. The episode highlighted specific state mini-WARN acts that could impose additional requirements beyond the federal statute, underscoring the importance of understanding the legal framework in every jurisdiction where employees are located.

Importance to Professional Liability Practitioners

This episode is particularly relevant for professional liability practitioners, as it addresses the intricacies of legal compliance and risk management in employment practices. Understanding these complexities equips insurers to provide better guidance and develop products tailored to the needs of their clients facing workforce reductions. Additionally, the discussion highlights the importance of comprehensive Employment Practices Liability Insurance (EPLI) coverage, which is an essential aspect of mitigating the financial implications of employment-related claims. By staying informed about the latest legal trends and challenges, insurance professionals can better support their clients in navigating the ever-changing landscape of labor and employment laws.

Interested in learning more about this topic? Listen to the full episode here.

Meet the Speakers

Laura Corvo, Counsel at White and Williams, represents employers in employment litigation and counsels clients on a variety of employment-related issues. She has extensive knowledge of federal, state and local employment laws and regularly counsels employers on a host of personnel and human resource issues including, employee hiring, discipline and termination matters, reductions in force, wage and hour compliance, family and medical leave compliance, and managing accommodations for disabled employees.

Victoria Fuller is a Partner and Co-Chair of the Labor and Employment Practice Group. She practices out of White and Williams’ Boston office. Victoria has over 17 years of experience as a civil litigator, focusing on employment litigation and counseling, higher education litigation, insurance coverage and bad faith litigation. Victoria is well-known for her creativity, commitment, efficiency and strategic focus with clients.

William Raven is an Associate in the Commercial Litigation Department and a member of the firm’s Commercial Litigation and Labor and Employment Practice Groups. Prior to joining White and Williams, William worked as an associate at two law firms where he handled various civil litigation matters including general and professional liability, and employment litigation. He was responsible for numerous depositions, drafting and arguing various motions including for summary judgment, and drafting a petition for relief with the Supreme Judicial Court single justice under M.G.L. c. 211 § 3 and subsequent petition on appeal to the full Supreme Judicial Court. He has also represented clients in various civil and taxation matters including before the United States Tax Court and Massachusetts Superior Courts.