Understanding and responding to the business and legal impacts of COVID-19

Are You Ready for More Layoffs?

April 22, 2020, SHRM Newsletter, by Allen Smith, J.D.

Even more layoffs may be on the way in response to the coronavirus recession. Are you prepared to make reductions in force quickly and fairly? Time is of the essence with layoffs after alternatives such as pay cuts and furloughs have been tried or ruled out.

Kristen Gallagher, an attorney with McDonald Carano in Las Vegas, and Laura Jacobsen, an attorney with McDonald Carano in Reno, Nev., cautioned employers against these common mistakes businesses make when conducting layoffs:

  • Failing to review contracts that govern a worker’s employment relationship.
  • Overlooking state or local rules that govern when an employee has to receive a final paycheck.
  • Not reviewing a policy that directs how accrued and unused vacation or paid time off is to be handled upon termination.
  • Withholding unauthorized amounts (e.g., deductions for damage to company property) from final paychecks.
  • Now is the time to mitigate any inadvertent or recently discovered failure to pay overtime and issue payment at the time of termination in order to avoid potential accrual of penalties, they added.

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About McDonald Carano

McDonald Carano has helped to shape the Nevada business and legal landscape for 70 years. With more than 60 lawyers and government affairs professionals in our offices in Las Vegas and Reno, we are Nevada's law firm for business. We proudly represent Fortune 500 companies, financial and governmental institutions, fast-growth and mid-market companies, entrepreneurs, start-up ventures, non-profit organizations and individuals. Our attorneys deliver cross-discipline, one-stop, commercial law and government affairs counsel. Our dedication to clients, innovative thinking and practical solutions based in sound business and legal judgments are at the heart of our practice. For more information, visit mcdonaldcarano.com, call 775.788.2000 (Reno office), or 702.873.4100 (Las Vegas office) or reach us by email at info@mcdonaldcarano.com.

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