Conduct a Reduction in Force (RIF) Under the WARN Act
The Worker Adjustment and Retraining Notification Act (WARN Act) is a federal law that requires most employers with more than 100 employees to provide 60 days advance notice to employees of impending mass layoffs.
Employers should proceed with caution when identifying employees to be discharged as part of a reduction in force (RIF) or a mass layoff. Factors used to identify employees for discharge should be grounded in performance, and the results of an initial evaluation should be reviewed.
Employers should cross-reference their results with additional factors such as equal employment considerations and impending vesting of benefits to ensure they are protected from disparate treatment or disparate impact claims.
There are several exceptions to the WARN Act, pertaining both to employees and employers.