Learn more about the Labor and Employment Group at Schiff Hardin. Attorneys In This Practice Thurston C. Bailey Eric L. Barnum Howard R. Barron Wendi J. Berkowitz Max G. Brittain Jr. William J. Carroll Nicole Finitzo Laura B. Friedel Stephen M. Hankins Valarie Hays Charlene Q. Kalebic Bita A. Karabian Paula M. Ketcham Matthew D. Lahey Neil Lloyd Catherine M. Masters Ralph A. Morris Marc L. Silverman Henry W. Sledz Jr. Patricia Costello Slovak Drahcir M. Smith Julie Furer Stahr Kathleen A. Stimeling Catherine H. Thompson Richard L. Verkler Nora Kersten Walsh Tamera M. Woodard Schiff Hardin Offices One Atlantic Center, Suite 2300 1201 West Peachtree Atlanta, GA 30309 225 Franklin Street, Suite 2600  Boston, MA 02110  6600 Sears Tower 233 S Wacker Drive Chicago, IL 60606 One Westminster Place Suite 200 Lake Forest, IL 60045 900 Third Avenue 23rd Floor New York, NY 10022 One Market, Spear Tower 32nd Floor San Francisco, CA 94105 1666 K Street, NW Suite 300 Washington, DC 20006 - - - - - - - - - Join our mailing list. Forward this alert to a friend or colleague. - - - - - - - - -

Schiff Hardin Labor and Employment Alert

Layoffs, Severance, RIFs and WARN - The Employment Law Minefield of Downsizing In a Shrinking Economy

The financial crisis impacting the U.S., European and world economies will, no doubt, have far-reaching implications for nearly every employer. This is particularly so for clients in the financial services, banking and securities sectors. One of the potential impacts will be the labor and employment law challenges that will arise due to contractions, dissolutions and takeovers happening in the industry. In September of 2008 alone the financial industry announced some 8,244 job cuts. Just this week, Citigroup announced another 25,000 job cuts that will shrink the number of employees by 20% since last December.

Schiff Hardin represents management in labor matters and employment-related litigation, and provides counsel to employers with respect to all legal aspects of employer-employee relations. Our firm's labor and employment law practice encompasses both the private sector and the public sector for large and small employers in a broad range of markets and industries. As the global financial markets continue toward possible recession, our clients require top-notch advice and counseling on a wide range of issues affecting their labor force. In the coming months, Schiff Hardin's Labor and Employment Group will offer a series of e-newsletters that tackle these very tough — and sometimes costly — issues. For now, employers in the financial industry must prepare themselves to address the thorny thicket of:

• Bonus calculations and incentive plan/pay policies
• Employee severance agreements and outplacement services
• Executive compensation agreements and limitations placed on those agreements by Congressional legislation
• FINRA arbitrations
• Non-compete and non-solicitation agreements
• Wage-hour class litigation, including unpaid wages and overtime claims
• ERISA litigation, including class actions and claims of breach of fiduciary duty
• Large-scale layoffs and implications of federal and state Worker Adjustment and Retraining Notification (WARN) Act(s) — and potential exemptions
• Legal and effective downsizing to avoid claims of discrimination (age, race, gender)
• Defending the independent contractor model against claims for unemployment benefits and overtime

Our employment attorneys are prepared to assist employers in navigating any of these issues. We encourage you to contact an attorney in Schiff Hardin's Labor and Employment Group to discuss the ramifications of any decision affecting employer-employee relations. We look forward to working with you, and stay tuned for more updates.

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RECENT LABOR AND EMPLOYMENT PUBLICATIONS

Labor and Employment Update (November 11, 2008)
A Minute of News and Views: Exit Interviews and Severance Agreements (October 8, 2008)
Labor and Employment Update (September 19, 2008)
Labor and Employment Update (August 20, 2008)
Labor and Employment Update (June 25, 2008)

ABOUT SCHIFF HARDIN LLP

Schiff Hardin LLP represents management in labor matters and employment-related litigation, and provides counsel to employers with respect to all legal aspects of employer-employee relations.

Our firm's labor law practice encompasses both the private sector and the public sector for large and small employers in a broad range of markets and industries.

Our Labor and Employment Group works cooperatively with attorneys in our Employee Benefits and Executive Compensation Group to provide our clients with comprehensive assistance in every aspect of the employer-employee relationship.

For more information, please feel free to contact us.