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.

With our thanks to Chris Guldberg for this post. 

The financial fallout from the outbreak of COVID-19 has unfortunately forced employers to turn to layoffs and furloughs. Many employers facing these decisions are looking for cost effective ways to mitigate the financial impact on affected employees. A supplemental unemployment benefit plan (“SUB Plan”) may be one way to assist employees while generating some cost savings for the company.

A SUB Plan is a unique type of severance benefit plan that permits employers to supplement state unemployment benefits on an employment tax-favored basis. The employer can make up the difference between an employee’s normal wages and state unemployment benefits and, unlike traditional severance, payments under a SUB Plan are treated as a benefit rather than wages and are thus not subject to FICA or FUTA for the employer or employee.


Continue Reading An Alternative to Traditional Severance: SUB Plans

In the wake of the global pandemic, many companies need to take quick action to reduce costs. This 40 minute webinar, co-hosted by the ACC Southern California Chapter, outlines the various cost-cutting strategies available to employers in the US, and walk participants through the major considerations necessary to minimize legal risk. Our speakers discuss how

Unfortunately, the economic fallout of the COVID-19 pandemic is forcing employers to implement a range of cost-cutting measures — furloughs, temporary office and location closings, and layoffs. As employers continue to adjust operations during these extraordinary times, it is essential to remember the notice obligation under the federal Worker Adjustment and Retraining Notification, or WARN,

We hope that you, your families and colleagues are safe and doing well. We know these are difficult and challenging times for everyone, including US employers.  As always, we are here to help you navigate the complexities of our current — and quickly changing — environment.

Click here to view our 40-minute on-demand webinar —

Unfortunately, the economic reality of the COVID-19 pandemic, including recent shelter in place orders in California, is forcing employers to implement a range of cost-cutting measures – furloughs, temporary office and location closings, and layoffs. As employers continue to adjust operations during these extraordinary times, it is essential to remember the notice obligation under the

Current and Anticipated Requirements

The stark reality of government quarantines, mass-gathering bans, school closures, public health emergencies, and travel restrictions is impacting the American workplace and workforce in truly unprecedented ways. Every day, US employers institute facility closures, remote-working, furloughs and, in some cases, layoffs in response to the economic and health impacts of the

As the 2019 Novel Coronavirus (COVID-19) spreads into the broader economy, human resource professionals are finding that grappling with the consequences are more complicated in union-represented workforces. In a union workforce, the employer must determine what it has already agreed it will do, the extent of its freedom to address the scenarios created by COVID-19, and the legal framework within which it must act. Below we offer several considerations for employers to adopt.

First, examine the collective bargaining agreement. This will allow you to determine the extent of the company’s freedom to act independently and expeditiously. The place to start is to determine management’s right to schedule work, to idle the plant, to send workers home and to lay-off employees. Determine the restrictions, if any, in these rights, such as call-in pay or weekly guarantees.


Continue Reading Managing COVID-19 In A Union Workforce In The US

Following the recent downturn in oil prices, the economy has forced many companies in Texas to cut costs (including labor costs). Part of the difficult layoff process can include determining whether to offer departing employees a severance package. So what do employers need to know when considering and drafting severance agreements?
Continue Reading Four Caveats When Drafting Severance Agreements – RIF Series