Managing the Reduction in Force
Louis C. Rabaut of Warner Norcross & Judd LLP
This article discusses some of the issues that arise when a company faces a workforce reduction and suggests some strategies for addressing them.
What Are The Benefits Of Having An Employment Contract?
Mansfield, Tanick and Cohen, P.A.
A written employment hiring contract may be the employee's most powerful vehicle for altering the normally rather o.
Employee Not Required to Return Release Payment
Dykema Gossett PLLC
The United States Supreme Court recently ruled that employers must strictly comply with the Older Workers Benefit P.
Legislative AlertÃÂ
Bradley T. Cave of Holland & Hart LLP
The Wyoming legislature began its general session on January 14, 2003. The bills that have been filed so far are a mixed bag of technical workers' compensation and unemployment insurance changes as well as a couple of unique labor-friendly proposals. As always, it's important for Wyoming employers to keep an eye on Cheyenne when the Legislature's in session.
What Rights Do At-Will Employees Have?
Mansfield, Tanick and Cohen, P.A.
Most employees in this country are known as "at will" employees. This means that they can be terminated or otherwi.
Layoff Checklist
W. Mark Gavre of Parsons Behle & Latimer
With the economy booming and unemployment low during the last few years, many companies struggled to keep and attract employees. Now with the dot-com bust and the economy on the verge of recession, companies are striving to cut costs and reduce employees. Companies now risk lawsuits from laid-off employees unhappy with their treatment. Consequently, employers should carefully consider the legal risks they face before conducting layoffs. Below is a list of topics to keep in mind.
Working Out Mitigation: Some recent issues in the form of reasonable notice and the duty to mitigate
of Paliare Roland Rosenbrug Rothstein LLP
In dealing with the dismissal of any employee, both the employee and the employer must negotiate a host of legal minefields. Two central concerns in navigating the end of the employment relationship are the employer?s duty to provide reasonable notice and the employee?s duty to mitigate the loss of his or her position.
Wages Increasing But So Are Taxes On Damages
Marshall H. Tanick of Mansfield, Tanick and Cohen, P.A.
The enactment last summer of federal legislation increasing the minimum wage was a welcome relief .
How Old are Your Workers Now?
Motschenbacher & Blattner LLP
Like many firms trying to stay competitive, your company may cut costs by reducing its workforce. When "older .
Guidelines to an Effective Termination
Alicia J. Farquhar and Jill Marsal of Wilson Sonsini Goodrich & Rosati
This article reviews the appropriate factors an employer should consider in assessing whether to terminate employment.
Effective Releases in Workforce Reductions
Parsons Behle & Latimer
The drafting and use of effective releases in workforce reductions continues to be an important part of employers' planning for such events. In 1990, Congress passed the Older Workers Benefit Protection Act ("OWBPA") which contains procedural rules for obtaining effective releases of claims for age discrimination that may arise as a result of a reduction-in-force.
EEOC Issues Regulations on Releases/Waivers of Age Discrimination Claims
Duff, White & Turner, LLC
On June 5, 1998, the U.S. Equal Employment Opportunity Commission ("EEOC") issued regulations that provid.
Taxes On Back Pay
Parsons Behle & Latimer
In April, the U.S. Supreme Court ruled that a back pay award or settlement must be taxed as wages in the year in which the amount is paid and may not be attributed to the prior years for which the amount was intended to be compensation. The case involved the Cleveland Indians baseball team which paid $2.7 million in back pay to 22 baseball players for salary that should have been paid 7-8 years earlier.
Temporary Twilight Zone
Littler Mendelson, P.C.
This article discusses the legal status and the rights of contingent workers-particularly in connection with exclusion from employee benefit programs-are in a state of flux.
Waiver And Release Does Not Prevent ADEA Claim
Ford & Harrison LLP
The United States Supreme Court recently held that a former employee who received severance payments from her emplo.
Severance Agreement Releasing Employer And Employees From Claims Is Enforceable
Bodman LLP
The Michigan Court of Appeals has affirmed that a severance agreement signed by a terminating employee that expres.
FICA Tax on Early Retirement Incentives Paid to Faculty--Benefits Briefs. Vol. 13, No. 2
Nixon Peabody LLP
This article summarizes North Dakota State University v. United States whereby the district court held that FICA is not due on early retirement incentives paid to tenured faculty members. The author analyzes the holding and compares it to other retirement classes and recommends that those effected continue paying your FICA taxes but file a protective refund claim.
Recent Employment Law Developments
McMillan, Rather, Bennett & Rigano, P.C.
This newsletter addresses employment law developments in two areas: (1) employer liability for providing a "negativ.
Court Rules Severance Agreement is a Top Hat Plan
Rosenman & Colin LLP
As you may be aware, ERISA imposes strict requirements on employee benefit plans in four areas: (1) funding, (2) .
Safe Layoffs--A Systematic Approach To Downsizing
David T. Barton and Eric B. Johnson of Quarles & Brady LLP
No one likes a layoff. But if you must reduce your workforce, you can reduce the risk of subsequent lawsuits by applying a systematic approach outlined in the following checklist.
Corporate Counsel Beware: The SEC May Freeze "Extraordinary Payments"
Richard A. McGuirk of Nixon Peabody LLP
On June 20, 2003, the Securities and Exchange Commission ("SEC") announced that it had filed securities fraud charges against the Henry Yuen, the former chief executive officer ("Yuen"), and Elsie Leung, the former chief financial officer ("Leung"), of Gemstar-TV Guide International, Inc. ("Gemstar").
Resolving Employment Disputes
Paul Jerome Richey of Buchanan Ingersoll & Rooney PC
INTRODUCTION This final chapter will address responding to and resolving employment disputes after the employee ha.
Protecting Podiatric Medical Practices From Employment Lawsuits
Stein, Sperling, Bennett, De Jong, Driscoll & Greenfeig, P.C.
Employees of podiatric medical practices across the nation are suing their employers. Claims include wrongful disch.
Employment Contracts and Severance Agreements: The Devil is in the Details
Sandra J. Creta and Robert K. Jones of Quarles & Brady LLP
The Arizona Court of Appeals recently decided Swanson v. The Image Bank, Inc., a case that illustrates the importance of getting the details right when dealing with employment documents.
Some Applications of ERISA to Executive Benefits Briefs. Vol. 13, No. 1
Nixon Peabody LLP
This article explains phantom stock options, severance and top hat plans and discusses how those plans apply to ERISA.
Severance Agreements--Friend Or Foe?
Gayle L. Eskridge of Eskridge Law
A severance agreement is an contract entered into between a departing employee and the employer, by which the emplo.
Older Employees not Required to Return Severance Benefits Before Suing for Age Discrimination and Challenging Age Discrimination Releases
Paul, Hastings, Janofsky & Walker LLP
In Oubre v. Entergy Operations, Inc., 66 U.S.L.W. 4118 (U.S. Jan. 26, 1998) (No. 96-1291), the Supreme Court ruled that older employees are not required to return severance benefits paid in consideration of a release before challenging the validity of the release under the Older Workers Benefit Protection Act ("OWBPA").
U.S. Supreme Court Enforces Strict Compliance with OWBPA Requirements
Bodman LLP
On January 26, 1998, the U.S. Supreme Court ruled that an employee could sue her employer for age discrimination un.
Controlling Potential Exposure -- What Employers Should Do, Post-Microsoft
Paul, Hastings, Janofsky & Walker LLP
On July 24, 1997, the Ninth Circuit issued its long-awaited, enbanc decision in Vizcaino v. Microsoft Corporation, holding that certain employee benefits might have to be provided to individuals whom Microsoft had misclassified as independent contractors.
Early Retirement Programs
Pillsbury Winthrop Shaw Pittman LLP
This memorandum discusses some of the principal legal issues that an employer must consider in planning an early r.
EEOC Clarifies Rules On Age Discrimination Waivers
David A. Anderson of Parsons Behle & Latimer
When employers decide to reduce the size of their workforces, or to terminate an employee who is over 40 years of age, they often offer severance pay in exchange for a release and waiver of legal claims by the terminated employees. In 1990, Congress passed the Older Workers Benefit Protection Act ("Older Workers Act"), which established procedural rules employers must follow in seeking such a waiver from employees who are over 40 years of age.
How to Effectively Compensate Your Management Team
Buchanan Ingersoll & Rooney PC
Recruiting and retaining premier executives to manage developing entrepreneurial and technology companies is a pro.
Stock Options and The Terminated Employee
V. John Ella of Mansfield, Tanick and Cohen, P.A.
A major concern of high-level employees terminated from their employment is the fate of their stock options.
Top Five Myths In The Workplace
Songstad & Randall
Employers often share misconceptions about laws related to the workplace. Here are the top 5 workplace myths: My.
Are Your Discrimination Waivers and Releases Enforceable?
Ford & Harrison LLP
Many employers try to nip discrimination and wrongful discharge claims in the bud by offering terminated employees .
Severance Pay Taxable
Stephen H. Cypen of Cypen & Cypen
The U.S. Court of Appeals for the Fifth Circuit has decided that the entire amount of a separation severance paymen.