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layoff alternative
Benefits & Compensation
layoff alternative
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
We have a part-time administrative asst. who currently works approx. 25-30/week. Because of financial constraints, we would like to reduce her hours to 12/week in lieu of a layoff. Are there any legal
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layoff alternative
posted at 2/16/2009 8:20 AM EST
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Posts: 3
First: 2/16/2009 Last: 3/19/2009 |
We have a part-time administrative asst. who currently works approx. 25-30/week. Because of financial constraints, we would like to reduce her hours to 12/week in lieu of a layoff. Are there any legal ramifications to doing this, and if so, what are they? |
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layoff alternative
posted at 2/16/2009 10:33 AM EST
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Posts: 2442
First: 2/12/2000 Last: 9/14/2011 |
In addition if she currently participates in any benefit programs, she likely will be ineligible based on hours. If she was in your health plan make sure she (and any covered dependents) receive a COBRA health notice and HIPAA notice. |
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layoff alternative
posted at 2/16/2009 10:35 AM EST
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
There could possibly be unemployment ramifications. That is since her hours dropped by 50%+, she could probably file and get unemployment. But that alone would not stop me from dropping her hours.
Is there a reason that she is working PT currently? If so, that could affect my answer...just in terms of being more careful if she is on intermittent FMLA, reasonable accommodation ADA, etc. Are you also laying others off? Or cutting other employee's hours? If so, it makes the case much easier to make...especially if she does have some type of special need. |
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layoff alternative
posted at 2/17/2009 3:41 AM EST
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Posts: 3
First: 2/16/2009 Last: 3/19/2009 |
As a matter of fact, my hours are being reduced as well. We may consider closing our office early on Fridays, which may result in a cut in pay for 2 other full time salary employees. Not sure about this one though because it may provoke a problem with one of our associates.
Our PT Admin has always worked part-time. I have looked into the Massachusetts DOL and there is a Work Sharing program for companies who need to reduce payroll costs due to temporary decline in business. The workers receive unemployment insurance benefits to supplement their reduced wages. |
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layoff alternative
posted at 3/18/2009 9:03 AM EDT
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Posts: 1
First: 3/18/2009 Last: 3/18/2009 |
I agree there are no legal ramifications to cutting hours. However, consider this point. Cutting hours to twelve may eliminate that individual all together. He/she is there because that individual needed a job. Cutting them to bare bones will essential set a catalyst for them to seek employment elsewhere.
You will essentially save money, or will you. If you have a definitive need for this person and he/she leaves, consider what it will cost you to bring in contract labor to replace him/her. At a general rate of 157% of wages for a contract person, will you really be saving? In addition, what will it cost you to train someone coming in to fill that gap -- or what will it cost you when a higher paid manager or yourself has to stop being productive to assume the duties of that individual. It is my view that cutting at the bottom of the wage pool doesn't always solve the problem. |
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layoff alternative
posted at 3/18/2009 9:53 AM EDT
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Posts: 1
First: 3/18/2009 Last: 3/18/2009 |
I don't know it the state in which you operate provides a similar program. NYS has a SHARED WORK PROGRAM Lets Employees Collect UI, Keep Health Benefits on a Reduced Work Schedule as a means to AVERT PERMANENT LAYOFFS Program.
Here is a link to the NYSDOL site for more information. http://www.labor.state.ny.us/pressreleases/2009/Feb12_2009_1.htm |
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layoff alternative
posted at 3/18/2009 11:32 AM EDT
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Posts: 1
First: 3/18/2009 Last: 3/18/2009 |
I agree with sharshap: I don't know how large your payroll total is but if this person earns $10 or $11 per hour, your savings will be only $130 or so per week. Then if the person does leave for more hours, you'll be faced with trying to fill a 12 hour per week position, not an easy trick. |
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layoff alternative
posted at 3/19/2009 4:50 AM EDT
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Posts: 3
First: 2/16/2009 Last: 3/19/2009 |
Thank you all for your input. I know for a fact that she is currently seeking employment elsewhere and has received an offer. She may be leaving. I am also seeking employment elsewhere too.
I looked into the workshare program through the Mass DOL. Unfortunately, our company does not qualify because we have a negative balance in our unemployment insurance. This is a problem that only the managing director can solve because he got us into this hole in the first place. |
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