Condon McGlothen and Joshua Ditelberg Published in Law360
"Reconsidering Renewed Mass Layoffs"

Seyfarth Shaw Chicago office partners Condon McGlothen and Joshua Dietelberg wrote an article published in Law360 on August 29. In light of ongoing global economic uncertainty, coupled with the U.S. recent credit downgrade, the article discussed some of the factors employers need to consider, should they be driven to undergo workforce retrenchment and reductions.

Condon and Josh note that there are particular industries that will most likely be forced to keep cutting jobs, and they discuss potential impacts of the recent Supreme Court Ruling, Dukes v. Wal-Mart, which they believe may lead plaintiffs to pursue legal action via class action claims tied to the demographics of those involved in mass layoffs.

Condon and Josh provide recommendations to employers contemplating workforce reductions in order to manage potential legal risk, including having a thorough selection process which would retain vital employees, ensuring that laid-off employees believe that the employer's decision was fair and preparing to defend its decisions in the event that an ex-employee seeks retribution.

They also provide a checklist for companies to consider prior to reducing their workforce, which lists considering alternatives; documenting steps taken throughout the entire process; identifying job functions that could be eliminated, reduced or merged; and preparing adverse impact analyses for protected groups, among others.

Condon and Josh conclude by suggesting that employers begin planning immediately to minimize risk, pointing out that the Equal Employment Opportunity enforcement agencies are operating at a much more aggressive level now than before, and without properly preparing for having to reduce the workforce, companies could be leaving themselves subject to numerous forms of litigation.