Reductions in Force and Furloughs During the COVID-19 Pandemic

Managing Employment Discrimination Risks by Conducting Disparate Impact Analyses

Due to the challenging economic and financial situation in the United States, if companies are contemplating making adjustments to their workforces, they have tools available to assess potential exposure to risks of employment litigation as a result of employee reductions in force and/or furloughs. Conducting proactive disparate impact analyses of planned RIFs or furloughs may help companies make informed decisions and identify potential litigation risks. Even for companies that have already made adjustments to their workforces, doing a retrospective analysis of disparate impact may help identify potential red flags and the need to review their layoff policies, decision-making processes, and available supporting documentation.