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Can You Lay Off Remote Workers First?
By Fisher & Phillips LLP.
Tuesday, 12th March 2024
 

Here’s the scenario: You were just told that your company needs to reduce its workforce by 10%, and it’s your job to put together an action plan for this grim assignment, but there’s a catch.

The leadership team wants you to lay off all the remote workers first to hit this target. They say it shouldn’t be a problem since you’re an “at-will” employer, but you’re not so sure. You want to know the legal considerations you should make before creating your action plan — and that’s a good idea because there isn’t a one-size-fits-all solution.

Here are four key questions to consider as you create your strategic plan for these difficult decisions.

1. How Has Your Company Responded to the Remote Work Boom?

  • Remote work is now an accepted option in many industries — and approximately 22% of the workforce will be fully remote by 2025, according to reports published by Forbes Advisor.
  • While some employers are calling workers back to the office, it remains a desired option for a significant percentage of the workforce. Notably, an astounding 98% of workers want to continue working from home, at least part of the time, according to Forbes Advisor.
  • Business leaders, however, are eager to bring employees back to the office. In fact, 64% of CEOs said they expect a full return to the office before the end of 2026, according to research by consulting firm KPMG.
  • Moreover, 87% said they plan to reward employees who return to the office with favorable assignments, raises, or promotions.
  • Teambuilding, collaboration, productivity, innovation, and pricey rent for unused office space are often cite as reasons to bring employees back together at the worksite.
  • As the labor market shifts and hiring frenzies are replaced with layoff plans, executives might see this as an opportunity to shift back to an “office first” philosophy.
  • Before requiring employees to come back onsite or selecting workers for a layoff based on their remote status, however, you’ll want to think about the impact on your company culture, which has surely evolved since pre-pandemic times.
  • You’ll also want to consider the impact on morale and your recruitment and retention efforts. Is this a sustainable plan for your particular business, industry, and location? You can read more here about the potential pros and cons of mandatory return-to-work policies.

2. What Does At-Will Employment Really Mean?

Your leadership team said they feel comfortable laying off remote workers first because you operate only in states that follow the employment at-will doctrine — which means you or the employee can end the employment relationship at any time and for any lawful reason. In fact, every state except Montana follows this general rule, though the details vary from state to state.

Read the full article here

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