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 Forming A Solid Layoff Strategy

Small Business Insurance
Important Considerations For Issuing Layoffs

By Dana J. Coates

Dana Coates, President TSBIC.com Are you facing layoffs in your business?

Businesses that are being forced in to carrying out a layoff of any number of employees should act proactively to protect themselves and their employees.

To mitigate or possibly altogether avoid the high cost of litigation, we encourage our customers to proactively take – at a minimum – the following steps prior to deciding if a layoff is the right move for your company, even if it only involves two employees.

If you would like to discuss the points outlined in this note, please feel free to contact Mr. Dana J. Coates of United Agencies, Inc. at epli.com, or call 800-378-5554 x 205

OR, IF YOU WOULD LIKE TO GET A QUICK IDEA OF THE COST FOR EPL COVERAGE THAT COULD
POSSIBLY OFFER SOME PROTECTION DURING LAYOFF SITUATIONS, CLICK HERE
(opens new page)

Prepare a Business Plan
  • Ensure your need for lay offs is objectively reasonable
  • Identify the number of affected employees
  • Identify positions affected
  • Identify the locations affected
Determine Where and When Lay Offs Will Need To Occur
  • Federal and State WARN Act notices may apply
  • State and local unemployment obligations may vary
Select a Methodology for the Lay Off Process
  • Seniority
  • Performance evaluations
  • Level Of Pay
  • Other Objective Reasons
Evaluate Employee Promises and Contracts
  • Employment Agreements
  • Hiring Agreements Or Offer Letters
  • Handbook Promises
  • Company Patterns, Policies And Practices
  • Union Shop-Collective Bargaining Agreements
Retain an Expert To Review Your Plan
  • Evaluate Compliance With Federal, State & Local Laws
  • Include Review Of Your Company’s Disparate Impact Unintentional Discrimination Policy
Maintain All Documentation
  • Prepare RIF file
  • File All Documents That Show Methodology Implementation
  • File All Expert Reports Confirming Plan's Legal Compliance
Plan Communication With Employees
  • Appoint A Communicator or A Communications Team
  • Identify Media Of Communication(s)
  • Determine Content Of Communication(s)
  • Develop Timeline For Communication(s)
  • Prepare all Necessary Paperwork
  • Final Paycheck
  • COBRA Forms
  • State Required Forms & Pamphlets
Properly planning and executing a reduction in force is tricky. If you have Employment Practices Insurance, you are advised to be certain that you discuss any such plans with your EPL carrier and your designated EPL consulting service, associated with your EPL policy. Typically HR support is unlimited and included with policies issued through United Agencies Insurance.

IF YOU WOULD LIKE A QUICK INDICATION OF THE COST
FOR SUCH COVERAGE, CLICK HERE (opens new page)

OR CALL MR DANA J. COATES AT 800-378-5554 X205

United is staying ahead by blazing the trail.

United Agencies Small Business Insurance Division (Contact Us by Email)
525 Cordova St., Ste. 200 // Pasadena, CA 91101-2552 
Phone: 800-378-5554 - or - 626-397-4700 // Fax: 626-683-7682

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