© 2024 Seyfarth Shaw LLP | www.seyfarth.com Classification Guidebook | 23 Eliminating Job Positions (if Necessary) A. Action Items for Positions Being Eliminated If the employer determines, as part of its classification review, that some job positions should be eliminated and/or some employees separated, there are a myriad of employment law considerations. The below list captures some of these issues. Some steps will not be necessary in all circumstances, and the applicability of certain steps will largely depend on the number of impacted employees. Should the employer deem it necessary to eliminate positions, Seyfarth can provide more specific and tailored advice and can develop templates for addressing many of the issues raised in the list below. 1. Determine the number and location of employees and positions that may be impacted and then: Consider alternatives to terminations, including transferring employees to other open positions for which the employees impacted may be qualified. Consider the impact of attrition, hiring freeze, hours reductions, and pay cuts. Document steps taken to avoid a reduction in force and/or reasons alternatives are not viable. 2. Review all policies, practices, handbooks, collective bargaining agreements, and any other materials concerning end of employment issues, including practices concerning selection criteria, transfer, seniority, retirement, termination, exit interviews, severance pay/benefits, releases, and recall rights. 3. Consider developing/updating an ERISA Voluntary Separation Pay Plan (VSP) and an ERISA Involuntary Separation Pay Plan (ISP). 4. Determine the anticipated timetable for implementing the position eliminations, and prepare a written planning document that (i) identifies specific job functions to be eliminated/reduced/merged/restructured, (ii) the total hours savings, and (iii) based on these facts, the number of positions to be reduced. Note: It is important at this stage to identify only affected job functions, not persons. 5. If multiple employees will be impacted, determine whether the WARN Act or state miniWARN laws may be applicable. If so, comply with all notice obligations. Please contact counsel for further legal advice. 6. Consider and plan for impact on H-1B Visa holders, employees receiving sponsorship, and other immigration issues. 7. Create a Review Committee to make final decisions on individual terminations and to ensure a uniform, objective, and thorough review. When selecting the Committee, ensure a diverse representation (including individuals over 40, minorities, and females). Depending on the scope of position eliminations, include top operational and H.R.
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