Employers who plan to save costs via a Reduction in Force (RIF) often face a more complicated landscape than they expect. RIFs can lead to significant liabilities and end up costing companies more than what was saved by cutting payroll. Current conditions of high unemployment may be compounding the risk, as the number of Equal Employment Opportunity Commission charges has also increased in this economy.
Our recent article in Bench & Bar, a publication of the Kentucky Bar Association, highlights the risks that companies face and provides a preliminary checklist for any employer considering an RIF.