Making layoffs without legal backlash

On Behalf of | Aug 31, 2018 | Fair Labor Standards Act (FLSA) |

As an employer, you will likely go through cycles of expansion and contraction. Sometimes the strength of your industry will mean that you need to hire large quantities of people to meet demands, and other times you may find yourself losing money while employees have little work to perform.

When you find it financially necessary to make layoffs, you are in your rights to do so. However, you need to make sure that you are acting within the law at all times. That way, you will not face any legal backlash from disgruntled former employees. Lawsuits can be costly regardless of whether you win or lose. Therefore, it is always best to reduce your potential risk for one.

Stay true to severance pay promises

If you have assured new employees of severance pay in the event of them being laid off, it is important that you keep good track of who this was promised to and that you honor it in every situation.

Understand the WARN act

The WARN act states that employers with 100 or more full-time employees give advance notice of at least 60 days before they make mass layoffs. Mass layoffs mean that one third of the workforce is laid off and there will be at least 50 employees laid off.

Make sure that employees have been paid overtime

It is vital that you ensure no employees being laid off have been misclassified regarding whether they are full time workers or contractors. You must also take steps to ensure that all owed overtime pay has been paid in full.

If you are planning to make layoffs in your company, make sure that you understand every aspect of Pennsylvania employment law before doing so.