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Healthcare Industry: Planning For Reorganizations And RIFs

Historically, the healthcare industry has not experienced layoffs of the magnitude seen by manufacturing and other sectors during the recent economic downturn. But with changes in healthcare, including changes in reimbursements, some employers may be faced with difficult choices, including reorganizations and layoffs.

New Reduction in Force Checklist (pdf).

Outlining proper steps.

Reducing Headcount Without Increasing Risk.

In a slumping economy, the cost side of doing business comes under significant scrutiny in all industries. This is certainly no different for retailers, which are often the hardest hit in a recession economy. Given that labor is generally the largest or second largest expense for retailers, labor is one of the first areas targeted for cuts. But unlike reducing inventory, delaying expansion plans, or monitoring fuel use, when labor is cut, real people take the hit and sometimes they come back swinging.

Planning A RIF? Read This First!

In reductions in force (RIFs), most employers offer terminating employees extra pay in return for agreements releasing legal claims. The extra pay helps workers transition to new employment; the releases enable the employer to move forward without the risk of costly and distracting RIF-related litigation. In recent cases, however, RIF-ed employees have convinced federal courts to invalidate their release agreements.
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