Unfortunately, it is not uncommon to hear of corporate layoffs—and sometimes on the large scale. For the small business owner though, having to let people go can be a new and extremely stressful process. It is rarely easy, mainly because the livelihoods of others are at stake. Employees may feel a range of emotions upon finding out that they are part of a layoff. While the initial reactions may vary from relief to anger to sadness, almost everyone experiences the classic stages of grief after losing a position that they relied on. And although you may be going through enormous business and financial challenges yourself, the elimination of jobs should be handled with integrity, respect, and according to the law.
The process should be considered thoroughly—and thoughtfully—and meetings should be held with any department managers regarding the impending layoffs and what the timetable and appropriate protocol for doing so will be. As an employer in California, you must comply with the California’s Worker Adjustment and Retraining Notification (WARN) Act, giving notice if you have a certain number of employees. If you have over 50 employees and will be closing a facility, relocating employees, or eliminating a mass number of jobs, you must notify them within two months of doing so.
Consider how much time you will want to give everyone after announcing the layoff. If they are to leave that day, you may want to allot a certain amount of time for work areas to be cleaned out, but not enough time for everyone to sit down and begin collecting confidential client data or other information that is considered the property of the business (as outlined in employee manuals and/or non-disclosure contracts). If you are worried about this part of the process, consider having computer equipment shut down, online company access limited or terminated, and have a supervisor helping with the packing process. Provide packing supplies, or if there is limited time, send all belongings by mail.
Consider how remaining employees will watch—and judge—the layoff process. Severance packages and temporary benefits should be considered. Communication with remaining staff about any layoffs is vital, and a meeting should be held to answer any questions about the process, and inevitable concerns about where the company, and their jobs, are headed.
Call our office for help to find out more about California’s laws regarding layoffs and other employer and business issues. Let us review your case and assist you in finding the quickest resolution possible. Please call Shane Coons now at 949-333-0900 or email us at Shane.Coons@seclawoffices.com.