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1. FEATURE STORY:
LAGGING HOME AND AUTO SALES LEAD TO LAYOFFS

As the housing slump continues, employers in financial services and construction are laying off parts of their workforce to combat bad business. The auto industry isn't faring any better. In fact, according to the Bureau of Labor Statistics (BLS), manufacturers accounted for almost half of all workers involved in mass layoffs in September, with transportation equipment manufacturing (e.g., motor vehicle components and parts) leading that pack (not seasonally adjusted).

BLS also reports that, for the first nine months of 2007, mass layoffs involving 50 or more workers at a single establishment numbered 11,114 (seasonally adjusted); for the same time period last year, there were 10,221.

Most employers experiencing mass layoffs are required to comply with the federal Worker Adjustment and Retraining Notification Act, more commonly known as WARN. In short, employers must provide employees with 60 days' advance notice of the layoff. These are the basic requirements.

Employers covered: Employers with 100 or more employees.

Events that trigger WARN: A plant closing (permanent or temporary) affecting 50 or more full-time employees at a single site; a layoff of 500 or more full-time employees at a single site; a layoff of 50-499 full-time employees that constitutes 33% of the total active workforce at a single site.

Employees who must be notified: Employees who are terminated or laid off for more than six months or who have their hours reduced 50% or more in any six-month period as a result of the plant closing or mass layoff; employees who may reasonably be expected to experience an employment loss as a result of a proposed plant closing or mass layoff; employees who are on temporary layoff, but have a reasonable expectation of recall; and part-time employees.

Employees who do not need to be notified: Strikers, or employees who have been locked out in a labor dispute; employees working on temporary projects or facilities of the business who clearly understand the temporary nature of the work when hired; business partners, consultants, or contract employees assigned to the business, but who have a separate employment relationship with another employer and are paid by that other employer, or who are self-employed; and regular federal, state, and local government employees.

Other required notices: If employees are unionized, you need to notify the bargaining agent/chief elected officer of each affected union or local union official. Notice must also be given to the State Rapid Response Dislocated Worker Unit, as well as to the chief elected official of the local government where the closing or mass layoff is to occur.

Note: Some states have their own mass layoff notification laws. A summary of each state's requirements can be found in Appendix A of AHI's Complete Employee Termination Kit.

"WARN"ing To Employees

Notice to employees should include the following information:

• Whether the planned closing or mass layoff is expected to be temporary or permanent.
• Whether the entire facility is to be closed.
• When the employer expects to close the facility or begin the mass layoff, and when the employee can expect employment to be terminated.
• Whether bumping rights exist.
• The name and telephone number of a company official who can give more information.
• Any other pertinent information. Example: If a facility will only be closed temporarily, state how long it will be closed.

Don't recreate the wheel. You'll find sample notices for employees and for the government already written for you, in Chapter 2 of AHI's Complete Employee Termination Kit.

2. CATHIE'S CORNER:
UPDATE: PROBLEM EMPLOYEE QUITS

A few weeks ago I wrote about my coaching a new supervisor, Hannah, as she worked with a problem employee, Rachel. This week I'm bringing you an update on that situation.

As you may remember, we put Rachel on a 30-day probation with a performance improvement plan (PIP), rather than fire her outright. Hannah documented her shortcomings and told her what she needed to do to make her performance acceptable.

A few days ago, Rachel was observed doing something that was specifically prohibited in her PIP. Hannah called her into her office and reprimanded her, reminding her that she had been specifically told that this was not acceptable behavior in the workplace. Rachel's response was to give her two weeks' notice.

Calmly, Hannah asked her to put it in writing, sign it, and date it. Rachel did so. After a bit more conversation, Rachel left for the day.

When Hannah reached me by phone later that afternoon, we agreed that since Rachel's job, though low-level, required the handling of a great deal of sensitive information, it would be unwise to allow her to work out her notice. As it happened, Rachel resigned on the last day of the pay period. We determined that, in accordance with our state's laws, we would have her final check for her last week of work ready for her on the next regular payday. (Had Rachel been fired, in our state, she would have been due her final wages immediately.)

Additionally, the owner of the company agreed with us that Rachel should be paid for her notice period, so a second check would be prepared to cover that time. We collaborated on a letter that would be given to Rachel when she reported to work the following morning, which would explain when she could pick up both checks. She would be asked to sign the letter, attesting to her understanding that those checks would be the last compensation she was due.

And, just to be on the safe side, all the sensitive information Rachel handled was photocopied.

The following morning, Rachel was a no call, no show. When we checked her desk, we found that all her personal belongings had been taken home the night before, so it was clear that she had never intended to come in. Hannah and I decided that, under the circumstances, she would forfeit the extra pay we would have given her for giving two weeks' notice. The purpose was to compensate her for work she was willing to do, but was not permitted to do. However, since she clearly never intended to work her notice, she would be paid her final wages and that was all. Though our state requires the payout of unused vacation time, Rachel, as a part-time employee of only four months, did not have any accrued time, so that was not an issue.

A few days later, Rachel sent a friend with a letter for Hannah, accusing Hannah of pushing her out the door, and claiming that Hannah's "mistreatment" of her had caused her to have medical issues. I assured Hannah that she had nothing to worry about. Hannah still did not quite understand that a doctor's note had no force in law outside of the Family and Medical Leave Act (FMLA), which did not in any way apply, and was concerned that if a doctor verified that Rachel's alleged medical and stress issues were work-related, then she, Hannah, could lose her job. The reality is, Rachel's workplace behavior more than warranted firing, and Hannah had given her a second chance anyway. Rather than correct her behavior, Rachel had chosen to quit. This was not going to rebound upon Hannah in any negative way. In addition, the business owners are well aware of the problems Rachel had been causing, and I am in a position to verify the performance issues for them.

Unfortunately, we all have "Rachel"s to deal with in the workplace. If you are a "Hannah," encountering them for the first time, it can be helpful to discuss management strategies with a more experienced professional or your legal counsel. Then you can go into your meetings with them with a clear understanding of what you should and should not do.

Catherine Bannon is the President of HR by Request, Inc., in Marshfield, MA (catherine.bannon@gmail.com). Bannon worked for 10 years in HR management before starting her consulting firm.

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