I never discuss politics. Never. I don’t have the stomach for it, to be honest, and I avoid the subject like the plague. That said, I did manage to watch part of the Presidential Debate on Tuesday night. There are ample pundits who surely have more insightful (i.e., political) commentary than what I can offer. So I’ll gladly leave the politics to others and stick with what I know–employment law. Here’s one HR-related lesson that I took away from the debate. Continue reading
Jason Selch worked as an investment analyst for his employer for 10 years. The company went through multiple mergers and acquisitions and eventually was bought by a Bank of America subsidiary. After the BoA merger, Selch learned that his friend and co-worker had been terminated after declining to accept a pay cut. Continue reading
When terminating an employee, employers need only one reason. Of course, there is rarely just a single reason for reaching the decision. But the existence of multiple reasons does not mandate that each reason be shared with the employee. In other words, when an employer makes the decision to terminate, there should be only one reason upon which the employer relies and which is shared with the employee-the “final straw.” When an employer changes its “final straw,” it raises doubts both with the employee and with the court and changing reasons are evidence of unlawful discrimination. Continue reading
It happens everyday. Employees are let go for poor performance or lack of work. After the decision to terminate has been made, employers must consider whether to offer the employee additional pay or benefits in exchange for a release by the employee of all claims he or she may have against the employer.
A separation and release agreement is simply the contract used to document the understandings reached by the parties. In addition to the severance payment and release, the employer might agree to provide a neutral reference or outplacement services for the employee. The agreement might also contain an agreement by the employee avoid working for a competitor for a period of time.
When should an employer consider a separation and release agreement? The following situations are typical:
· A termination in which the employee has already asserted a claim against the employer;
· A termination in which the employer is concerned that the employer will likely assert a claim;
· A termination in which the employer is willing to provide extra pay or benefits above what the employer would normally be entitled in exchange for a waiver of claims.
Although a waiver of claims is very desirable, employers should consider the possible consequences of asking for such a waiver, particularly if the severance payment is going to be small. By asking for the waiver, the employer may suggest to the employee – for the first time — that he or she actually has a claim.
Our annual employment law seminar, held last month, was a tremendous success. As promised, we posted the first of the presentation slides (COBRA and the Economic Stimulus Package), last week. Today, we are happy to deliver the slides from Scott Holt and Maribeth Minella’s “Layoffs and Reduction in Force” presentation.
Mark your calendars–our next seminar will be held on June 5, 2009, as part of our Breakfast Briefing series. Look for more information this week on the topic and registration. In the meantime, don’t hesitate to let us know if there are topics in particular that are on your radar these days.
What if your employer announced cut-backs but, instead of announcing who would be subject to layoffs, you were giving the task of making the choice. How easily could you select which of your coworkers you would “vote off of the island”? Talk about peer pressure. Talk about cubicle wars!
Would you vote for the employee who never carries his weight? Or would you invoke the Survivor strategy of voting off the strongest competitors–even though it means you’d run the risk that you’d have to do more or that the business would suffer in the absence of its key performers?
Thanks to a new reality show, viewers can live this decision process vicariously. In each episode of “Someone’s Gotta Go’,” workers at a struggling business will choose who should get a salary cut or raise and who should be fired based on information about pay and past performance.
Maybe you’d better smile at the coworker in the neighboring cubicle a little more often these days.
Delaware employers can learn more about other, more humane, alternatives to layoffs at our annual Employment Law Seminar on April 29. (Learn more about the employment-law seminar here and register for the seminar here).
Delaware’s largest industrial employer is asking its salaried workers to take at least two weeks’ unpaid leave. 75 of the company’s senior leaders announced that they will take three weeks off without pay in response to the current market conditions. There are a number of reasons to consider initiating this type of voluntary program instead of involuntary layoffs. According to the article reported by the Wilmington News Journal:
Employers appear to be favoring voluntary programs, according to a February survey by Watson Wyatt consulting firm. Eleven percent of the 245 U.S.-based companies surveyed have instituted mandatory furloughs, while another 6 percent expect to launch a program in the next 12 months. By comparison, 10 percent already have had voluntary furloughs and another 9 percent are expected to ask for voluntary furloughs within the next 12 months, the survey said.
A DuPont representative cited the current preference for flexible work schedules as one reason for its decision to initiate the voluntary program. Another reason was that it made compliance with foreign laws easier than if an involuntary layoff program had been utilized.
For those of us on the East Coast, where summer is king, now may be an ideal time to consider offering a flexible-downsizing initiative. If your organization is trying to cut labor costs without having to layoff its valued employees, you may want to think about unpaid leave, voluntary furloughs, and reduced-schedule work week. If your employees traditionally flock to the beach on Friday afternoons, they may jump at the chance to work a four-day week for 4/5 of their normal pay. Even a temporary program for the summer months may be enough to enable your organization to stave off unwanted involuntary reductions.
I’ll be conducting an audio conference on layoff alternatives in June for M. Lee Smith Publishers. Be sure to check out the HR Hero website for lots of resources on employment-law and human-resource topics, including information about voluntary and mandatory furloughs. Delaware employers can learn more about the legal considerations involved in layoffs at our annual Employment Law Seminar on April 29. (Learn more about the employment-law seminar here and register for the seminar here).