Tag Archives: reductions in force

12/31 Hiring Deadline To Claim Work Opportunity Tax Credit For Hiring Vets


U.S. businesses planning to hire for positions that veterans qualify for might want to make their hiring decision by December 31, 2012 to take advantage of a possible opportunity to receive a Work Opportunity Tax Credit. Employers planning to claim an … Continue reading

Posted in Bankruptcy, CEO, Director Liabiloity, Employee Benefits, Employment, Fiduciary Responsibility, Internal Controls, Labor Relations, M&A, Officers, Reductions In Force, Reengineering, Tax, Turnaround Management | Tagged , , , , , , , , , , , , , , , , , , , , , | Leave a comment

RIFS & Other Workforce Changes Require Careful Legal & Operational Management


Hotel Bel-Air Gets Labor Gocha When Offering Severance A National Labor Relations Board (NLRB) decision that nails Hotel Bel-Air (Hotel) for offering severance packages to unionized workers highlights one of a range of potentially costly missteps that businesses conducting reductions … Continue reading

Posted in Bankruptcy, CEO, Director Liabiloity, Employee Benefits, Employment, Fiduciary Responsibility, Internal Controls, Labor Relations, M&A, Officers, Reductions In Force, Reengineering, Tax, Turnaround Management | Tagged , , , , , , , , , , , , , , , , | Leave a comment

Workforce Reductions May Trigger Plant Closing & Union Notice, Benefit, & Other Obligations


Where a distressed business contemplates a plant closing or mass layoff, the business and its leaders should consider its potential responsibilities under the Worker Adjustment and Retraining Notification Act (WARN) and where applicable, make appropriate arrangements to comply or implement the restructuring to minimize or avoid triggering WARN obligations. In addition to WARN, business contemplating or implementing a plan closing, mass layoff or other reductions in force also should evaluate and make appropriate arrangements to address potential obligations under state plant closing laws, the medical coverage continuation mandates of the Consolidated Omnibus Budget Reconciliation Act (COBRA), retirement plan funding, notice and distribution, vesting or other obligations, for unionized environments, union notification, negotiation or other obligations, voluntary or contractually obligated termination pay or other severance obligations, unemployment, and other obligations. In this respect, particular attention generally is warranted to ensure that vesting and funding requirements for employee benefit plans are assessed and fulfilled, including any new or accelerated obligations to vesting if the reductions result in a partial or complete plan termination, cause underfunding of a defined benefit plans, special tax, securities or other obligations arising from the vesting of payment of deferred compensation under Internal Revenue Code § 409, golden parachute payments under Code §280G or other special compensation or benefits, as well as providing for appropriate application of employee benefit contributions withheld from pay., or otherwise. Continue reading

Posted in Bankruptcy, Director Liabiloity, Employment, Reengineering, Shareholder Liability, Tax | Tagged , , , , , , , , , | Leave a comment