For many, Texas brings to mind images of cowboy boots, belt buckles, and, of course, oil.  Unfortunately, the collapse of oil prices has forced many companies in Texas to cut labor costs through reductions in force.  Conducting a RIF, while attempting to avoid future liability, can raise a variety of questions.  How do we choose which employees to include in the RIF?  What notices must we give to employees?  What do we need to consider when issuing final pay?  Do we need to provide employees with severance?

These questions are critical because a failure to comply with the various employment laws could result in significant penalties and employee lawsuits, both of which could eat away the cost savings that the RIF was intended to accomplish.

To address these concerns, we will be issuing a four-part series of weekly RIF-related posts on the following topics:

  • Selecting which employees to layoff
  • Complying with various notice requirements
  • Paying employees their final wages
  • Offering severance to employees

The first RIF Series post will be available Wednesday, July 1