Layoffs and Restructurings

We are pleased to invite you to our webinar series on the Subcontracting Reform in Mexico this Tuesday, May 4. We will offer one session in Spanish and one in English.

During the first part, our specialists will discuss the impact of the Reform on companies operating in Mexico from the perspective of the different

We are pleased to share a recent SHRM article, “Restructuring Your Organization Post-Pandemic? Maintain DE&I Commitments,”  with quotes from Mike Brewer. The articles discusses employers should be careful not to backtrack on progress made last year toward diversity, equity and inclusion (DE&I) as they prepare for a post-pandemic world, restructuring and reorganization to account for

On April 16, Governor Gavin Newsom signed a statewide right of recall law (Senate Bill 93). SB 93 is similar to the Los Angeles City recall ordinance and the San Francisco right to reemployment legislation. It is effective immediately and will remain in effect through December 31, 2024.

Here’s what you need to know:  

Covered Employers

The new law does not apply to all employers. It applies generally to hotels, private clubs, event centers, airport hospitality operations, and airport service providers, while also applying specifically to janitorial, building maintenance and security services provided to office, retail and other commercial buildings.

Important Definitions:

  • “Hotel” means a residential building that is designated or used for lodging and other related services for the public, and containing 50 or more guest rooms, or suites of rooms (adjoining rooms do not constitute a suite of rooms). “Hotel” also includes any contracted, leased, or sublet premises connected to or operated in conjunction with the building’s purpose, or providing services at the building.
  • “Private club” means a private, membership-based business or nonprofit organization that operates a building or complex of buildings containing at least 50 guest rooms or suites of rooms that are offered as overnight lodging to members.
  • “Event center” means a publicly or privately owned structure of more than 50,000 square feet or 1,000 seats that is used for the purposes of public performances, sporting events, business meetings, or similar events, and includes concert halls, stadiums, sports arenas, racetracks, coliseums, and convention centers.
    • The term “event center” also includes any contracted, leased, or sublet premises connected to or operated in conjunction with the event center’s purpose, including food preparation facilities, concessions, retail stores, restaurants, bars, and structured parking facilities.
  • “Airport hospitality operation” means a business that prepares, delivers, inspects, or provides any other service in connection with the preparation of food or beverage for aircraft crew or passengers at an airport, or that provides food and beverage, retail, or other consumer goods or services to the public at an airport.
  • “Airport service provider” means a business that performs, under contract with a passenger air carrier, airport facility management, or airport authority, functions on the property of the airport that are directly related to the air transportation of persons, property, or mail, including, but not limited to, the loading and unloading of property on aircraft, assistance to passengers under Part 382 (commencing with Section 382.1) of Title 14 of the Code of Federal Regulations, security, airport ticketing and check-in functions, ground-handling of aircraft, aircraft cleaning and sanitization functions, and waste removal.
  • “Building service” means janitorial, building maintenance, or security services.


Continue Reading California Establishes Statewide Right to Recall for COVID-Related Layoffs Limited to Certain Industries

We are pleased to share a recent Law360 article, “3 Ways To Protect Diversity If Layoffs Are Unavoidable,” with quotes from Mike Brewer. This article discusses three tips employers can use to help safeguard diversity when reductions in force cannot be avoided due to economic havoc caused by COVID-19.

Click here to view the article.

As a result of the pandemic, many companies have been forced to consider layoffs and furloughs. In this video, our Labor and Employment attorneys discuss how employers should approach such cost-cutting measures to ensure they are not discriminatory and to avoid allegations of differential treatment.

Click here to watch the video.

For the last year, employers have faced unprecedented challenges navigating the impact of the pandemic. Keeping up with scores of new laws, evolving standards, shelter-in-place orders (see our tracker here), quarantine restrictions and more has meant no rest for the weary. And, in the backdrop, there’s the looming threat of employment litigation arising from

We are excited to invite you to our virtual Annual California Employer Update on Tuesday, December 8, 2020, from 1:00 – 2:15 PM PT.

“Quick Hits: California’s Top 10 & What You Need To Know In 2021” is designed to ensure that in-house counsel are up to speed on what changed in 2020 and prepared

On June 23, the San Francisco Board of Supervisors voted to approve “right to reemployment” legislation that requires large employers to first offer laid-off workers their old jobs back before offering employment to new applicants (“Ordinance”). It will become effective immediately upon Mayor London Breed’s signature and will expire upon the 61st day following enactment unless extended.

Advocates of the Ordinance argued the requirement is necessary to ensure employers don’t use the pandemic as an opportunity to simply replace old workers with new employees who are younger and less expensive. Organizations lobbying against the Ordinance argued that it is overly burdensome; violates core constitutional principles; runs counter to several federal and state laws; and is extremely vulnerable to abuse. Similar legislation has surfaced in Los Angeles County as well.

Covered Employers

“Covered employers” are defined as for-profit and non-profit employers that directly or indirectly own or operate a business in the City or County of San Francisco and employ, or have employed, 100 or more employees on or after February 25, 2020.


Continue Reading San Francisco Provides Temporary Right to Reemployment Following Layoff Due to COVID-19 Pandemic

With many thanks to Chris Guldberg for this post. 

Employers considering COVID-19-related layoffs and RIFs right now should add one more item to their checklist of considerations: the possibility of inadvertently triggering a “partial termination” of their tax-qualified retirement plan.

Where plan participant numbers decrease substantially, the plan may incur what’s known as a “partial termination.” This is significant because, once triggered, the IRS requires the benefits of all “affected employees” be fully vested. Failure to provide such vesting could put the plan’s tax-qualified status at risk.


Continue Reading Beware — COVID-19 Layoffs May Trigger Liability for Partial Plan Terminations

This 1-hour webinar recording covers cost-cutting strategies including, layoffs, furloughs, salary reductions, delayed start dates and revoking offers, shortened workweeks, and exit incentive programs. Each topic outlines necessary key steps and considerations.

Please see below the webinar materials as well as additional resources.