What must companies consider when planning for downsizing?
As employers downsize their workforces, they commonly offer separation packages in exchange for employee releases of claims. In their haste to accomplish a reduction-in-force, employers often overlook legal requirements. For instance, in order to obtain effective releases of age discrimination claims, employers must satisfy numerous requirements. One such requirement is that employees be given at least 45 days in which to consider and accept the offer made to them. Even after they sign the agreement, employees have a seven-day period in which to revoke the agreement. Another requirement often overlooked in a workforce reduction is that releases signed by employees do not waive age-discrimination claims if the employees do not receive certain disclosures showing the ages and job classifications of individuals who were released (and therefore offered a separation package), as well as the ages and job classifications of persons who were not released. Are there special downsizing considera
