Employers who face a possible work force reduction should take labor and employment laws into account to minimize the risks of liability.
Planning reduces the likelihood of employment discrimination claims.
In a work force reduction, employers must decide which employees to keep and which to lay off. Such decisions expose them to the risk of liability for employment discrimination claims. Generally, employers minimize such risks by eliminating their own discretion in the selection of employees for the reduction in force. If an employer bases layoffs on a means neither imposed by a labor contract nor grounded in self-selection, then it must analyze how the layoffs affect minorities, females, and employees over age 40. Such an analysis compares the percentage representation of such groups in the contractor's work force before and after the proposed layoffs.