Office of Human Resources



Guidance on Layoff or Non-Renewal of Employees Age 40 or Older

Related Policies: Layoff Severance Program for Civil Service and Union-Represented Staff Employees; Non-Renewal Program for Academic Professional and Administrative Employees

When considering a layoff or non-renewal of employees age 40 or older, the requirements of the Older Workers Benefit Protection Act (OWBPA) should be reviewed. The OWBPA amended the Age Discrimination in Employment Act to safeguard older workers from age discrimination.

Specific OWBPA requirements come into play whenever there is a “group” layoff or non-renewal affecting anyone age 40 or older, if anyone in the group who is age 40 or older is offered severance benefits.

• A “group” is defined as 2 or more individuals who are part of the same “decisional unit.”

• A “decisional unit” for a group layoff is the part of the organization from which a specific decision making authority chose individuals to be laid off or non-renewed, as part of the same staff reduction process.

It is the HR Lead’s responsibility to determine what constitutes the decisional unit. Once the OWBPA requirements are triggered, individuals in the group who are aged 40 or older and offered severance must be provided with additional disclosures of information (see list below), and must be given at least 45 calendar days to consider the terms of the severance offer and the additional disclosures.

The additional disclosures of information must include:

1. A description of the decisional unit (for example, Facilities Management),

2. The eligibility factors for the severance program (what factors resulted in the decision to lay off or non-renew the employees in the decisional unit; for example, program curtailment or reorganization, and a reference to any applicable contract terms or Civil Service Rules),

3. The time limits applicable to the program (the amount of time over which the individual has the opportunity to elect the severance program),

4. For each job classification in which layoff(s) occurred, the number of individuals of each age who were selected and offered severance (the use of age bands broader than one year, such as "age 40-50" does not satisfy this requirement), and

For each of these job classifications, the number of individuals of each age who were not selected.

Template letters for layoff and non-renewal include language in the letter and an attached form called “Job Titles and Ages of Individuals Considered for Inclusion in the Group Layoff and/or Non-Renewal” which must be completed to provide each of the above listed disclosures.

Frequently Asked Questions

1. Is the “decision maker” the individual who has final approval?

No, a decision maker need not have the final approval authority if his or her decisions normally are approved.

2. If an individual is selected for an individual reason that is different from the reason for a group layoff and/or non-renewal that’s happening at the same time in the decisional unit, is that individual part of the group layoff or non-renewal?

Please consult with Employee Relations to review the specifics of the situation.

3. When individuals are laid off strictly due to bumping procedures, does the OWBPA apply?

No, because the decision of who to bump is dictated by the union contract or Civil Service Employment Rules, and is not at the discretion of the University.

4. Is there a time frame to look back or forward when layoffs and/or non-renewals occur over a period of time?

The time frame is determined by the scope of the decision. If an authority determines, for example, that over the next year 4 positions will be eliminated to cut costs, all 4 positions are part of the decisional unit for purposes of the additional disclosures, even if the layoff and/or non-renewal dates occur at different times.

5. How much time needs to elapse between the date of notice of layoff and/or non-renewal and the date of signing the release of claims?

An employee in a group layoff or non-renewal who is age 40 or older is entitled to at least 45 calendar days to consider the terms of the release and the additional disclosures. Employees who are under age 40 are entitled to notice as specified in applicable bargaining unit contracts, the Civil Service Employment Rules, and/or the Academic Staff Non-Renewal Program.

6. If I have additional questions, who should I contact?

Managers should contact the HR Lead for the college or unit. HR Leads should contact their designated Employee

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