Class action discrimination lawsuits frequently arise from reductions in force, also known as RIFs. Although the plan for each RIF will vary depending on the particular facts and circumstances, employers contemplating RIFs should keep the following points in mind to minimize the risk of litigation and avoid liability:

The importance of careful planning cannot be overemphasized. Effective planning includes consultation with knowledgeable legal counsel early in the process and well in advance of implementing employment terminations;

Reductions in force often implicate a myriad of legal issues such as compliance with the nondiscrimination laws, the Age Discrimination In Employment Act, ERISA, and the Worker Adjustment and Retraining Notification Act (WARN). Issues of pension eligibility, salaries, seniority, job performance, and management discretion may also arise during a RIF;

Employers should carefully structure the RIF decision-making process, and conduct adverse impact analysis at the direction of counsel, in order to set the groundwork for the defense of any discrimination claims filed with the EEOC or in court; and Counsel should ensure that waivers and releases are knowing and voluntary and, for employees age 40 or over, in compliance with the notice and disclosure requirements of the Older Workers Benefit Protection Act.

Morgan Lewis has prepared a detailed seminar paper titled, "Today's Problems In Reorganizing The Workforce And Protecting Against Claims From Terminated Employees." Please contact Bernadette Pierce by phone at 215-963-5719 or by fax at 215-963-5299 for a complimentary copy of this article.

This White Paper is published to inform clients and friends of Morgan Lewis and should not be construed as providing legal advice on any specific matter.