How to conduct layoffs without discrimination: Ask HR

Johnny C. Taylor Jr. tackles your human resources questions as part of a series for USA TODAY. Taylor is president and CEO of the Society for Human Resource Management, the world's largest HR professional society and author of "Reset: A Leader’s Guide to Work in an Age of Upheaval.”

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Question: We may make personnel cuts or layoffs due to a change in our business structure. What is the best way to go about determining who gets cut? We have a large handful of people reaching (or over) retirement age, but we don't want to cross lines of age discrimination. Should we go with a "last in, first out" mentality? Or base it on performance and/or attendance? While we don't want to lay anyone off, we just don't need the workforce we currently have on board. – Austin

Answer: Navigating layoffs or reductions in force is a challenge, plain and simple. The process can be stressful for both employers and employees, but one of the most significant stressors is the potential for legal fallout. A company may need to reduce its workforce for several reasons – from restructuring to budget cuts, outsourcing to mergers, and so much more. These factors will influence the decision-making process in determining which employees will be let go. It's crucial, however, for employers to base those decisions on legitimate business reasons to avoid legal exposure or discrimination claims.

You could make selections based on seniority, often referred to as "last in, first out." This is typically seen as a fair approach, as it rewards the loyalty and commitment of long-tenured employees. It's also one of the methods to defend with proper documentation.

Another option is the merit-based approach, which allows employers to retain top talent while keeping their best performers on board. Keep in mind, that objective and well-documented performance metrics are your best defense. Without solid performance reviews, discipline records, and objective ratings in place, this method could open the door to discrimination claims.

You could also combine criteria such as seniority, performance, knowledge, skills, attendance, education, and experience. If you have solid documentation to back it up, a multiple-criteria ranking method can strike a balance, helping you keep top performers while also honoring long-term employees.

As an alternative to layoffs, some employers do offer early retirement incentives to a select group of eligible employees. However, you should do this with caution. This could backfire if the cost of offering these incentives is too high or if they don't produce the number of separations needed.

As an alternative to layoffs, consider implementing a pay reduction program. To ensure fairness and effectiveness, it's best to apply uniform pay cuts across the board. Additionally, you could explore scaling back on benefits or other perks currently provided to employees. This approach helps protect jobs while making necessary adjustments to manage costs.

In the end, layoffs and reductions in force are complicated, but employers can minimize their risk by sticking to objective, nondiscriminatory criteria and seeking legal counsel. The key is to handle the process with care and thoughtfulness, ensuring decisions are defensible if questioned.

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I work for a restaurant corporation, and we don’t have an HR rep physically in place at restaurant locations. One is available only during the open enrollment window at the end of the year. Outside of that, we are steered to an internal website for HR support. How can I get detailed answers to benefits questions under this setup? Sanaa

It’s frustrating to feel like you’re navigating important benefits questions without a clear point of contact. HR should indeed serve as a reliable resource for employees, especially regarding benefits that directly impact their well-being. While having an HR representative only during open enrollment limits access, there are still steps you can take to get the answers you need:

Start with your manager or colleagues. Your manager may have insights or experience in handling similar situations and can point you in the right direction. Likewise, coworkers may have faced similar questions and can share how they resolved them.

Explore the internal HR site. While impersonal, many companies provide comprehensive resources on their HR platforms. Look for FAQs, benefits guides, or a contact form to submit specific inquiries. Some systems even offer live chat features or scheduled callbacks.

Look for a third-party administrator. Some companies outsource benefits management to third-party administrators. If this is the case, the HR site might list contact information for the third-party administrator or their customer service line, which could provide more personalized support.

Review your employment documents. Check your job offer letter, onboarding materials, or employee handbook. These often include a summary of benefits or contact details for further assistance.

Advocate for better access. If these steps still leave gaps, respectfully voice your concerns to management. Explain how timely access to benefits information supports employee satisfaction and productivity and suggest implementing more year-round HR availability.

I’ll add this: You’re probably not the first employee on your team to run into this issue. Once you find an answer, share what you discover with your colleagues and manager, so they don’t have to deal with your struggle. Anyone at any level can help make a better workplace.

Employers benefit when employees have the resources they need to understand and use their benefits. I hope you can get the answers you need by being proactive and exploring all available avenues, and I wish you success in resolving your questions.

The views and opinions expressed in this column are the author's and do not necessarily reflect those of USA TODAY.

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