Financial Services Resource Center for HR: Terminations and Reductions in Force

This item is part of Financial Services Resource Center for HR

Financial services employers face unique challenges when it comes to layoffs, reductions in force and compliance with both the federal WARN Act and state counterpart "mini-WARN Act" legislation. Depending on the circumstances, employers may be eligible for several potential exceptions to the WARN Act which allow for delays in the notification process or otherwise entirely excuse employers from providing advance notice of terminations. The exceptions most commonly used in the financial services industry are the unforeseen business circumstance exception, which requires notification as soon as possible after employers discover viability concerns and the faltering company exception, which applies when the employer is seeking financing or new capital to stay afloat. These exceptions may or may not be available at the state level as well, depending on the jurisdiction.

XpertHR has materials to assist financial services employers in preparing for layoffs, reductions in force or mass terminations, and robust materials on compliance with both the federal WARN Act and state counterpart legislation: