With the end of the 2022 second quarter and inflation at a record high in more than four decades, some employers may be forced to take measures to reduce overall operational expenses. Reducing payroll costs is one of the cost-savings measures available to employers in these circumstances. Unfortunately, however, this often results in the loss of employment for employees by way of a reduction in force, or a “RIF.” If a company must move forward with such a process, it must be carefully planned and executed in order to minimize the risk of employment law claims. Below is an overview of factors business owners and human resources professionals should consider when implementing reductions in staff, schedules or compensation.
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