What Would You Say You Do Here – Layoffs and RIFs

Hello Everyone:

Companies are in the business of trying to get ahead of changes in their markets.  Unfortunately, when economic conditions don’t look as promising, layoffs, staff reductions, reductions in force or whatever the latest term that is used become an all too common phenomenon. 

If you look at the latest reports, the job market is still solid.  However, everyday there are new announcements about coming layoffs.  It started in the tech industry moved to the financial service firms and is slowly making its way into manufacturing.  Companies that over-hired or may not be as financially sound are the first to employ such cost saving tactics. 

So, what does this mean for you as a business owner?  Are layoffs the way to go?  Below are some interesting insights on this unfortunate, but very real cost control tool, why it happens and how companies approach it:

If you’re a business owner and need to reduce your workforce, it’s important to have a plan in place and be as clear as possible with its communication.  On flipside, I would not suggest you use Office Space as your model
 
Other items of interest:

As always, please don’t hesitate to email myself (jsanders@mpl-law.com), Andy Miller (amiller@mpl-law.com), Christian Miller (cmiller@mpl-law.com), Erik Spurlin (espurlin@mpl-law.com), Brad Leber (bleber@mpl-law.com) or anyone in our office with questions or comments.   

Please see all of our prior updates at this link or if you would like to be added to our email list, please click here.   

I’ll Be Back – Will AI Totally Replace Humans?

 

I read an article last week that said a business owner covertly had an AI program (ChatGPT) write and submit a job application to the recruitment team at his company.  It was so good that it ended up in the top 20% of the candidates.  It’s like James Cameron’s Terminator film is becoming a reality.  AI is infiltrating so many facets of the business world, it is hard to know what is human generated and what comes from the machines.  It is becoming so big that Microsoft is in talks to invest $10,000,000,000 (yes that’s Billion) for a 49% stake in ChatGPT.  For some perspectives on this fast-moving phenomenon, check out some of the articles below: 

 
The bottom line, in my view, is that this AI trend is here to stay and will continue to permeate different functions which used to be handled by humans.  The question is how quickly humans allow this to happen.  Things like Covid certainly accelerated its adoption in the business world.  Will Humans or Machines eventually win out?  I can assure you “AI WILL BE BACK” as a topic on this weekly update!
 
Other items of interest:

As always, please don’t hesitate to email myself (jsanders@mpl-law.com), Andy Miller (amiller@mpl-law.com), Christian Miller (cmiller@mpl-law.com), Erik Spurlin (espurlin@mpl-law.com), Brad Leber (bleber@mpl-law.com) or anyone in our office with questions or comments.   

Please see all of our prior updates at this link or if you would like to be added to our email list, please click here.   

Out of Sight, Out of Mind – The Return to the Office Debate

Over the last few weeks, many organizations are pushing for staff to come back to the office.  The debate rages on whether being in the office really matters.  Covid and the shutdowns forced business to rethink the way they operate.  However, as things rapidly return to some level of normalcy, the opinions are mixed whether being in an office setting is important.  Below are some articles that might provide some insight into the return to the office trend:

From my perspective, the opinions on both sides are valid and have pros and cons.  The culture of your company will determine whether the need to have people in the office is required.  However, and perhaps I am a bit old school, I believe that there is a value in face-to-face interactions.  If you are out of sight, you potentially become out of mind when it comes time for promotions and other opportunities.  One the flipside, it also becomes easier to make reductions in force when the unfortunate need arises.    
 
Other items of interest:

As always, please don’t hesitate to email myself (jsanders@mpl-law.com), Andy Miller (amiller@mpl-law.com), Christian Miller (cmiller@mpl-law.com), Erik Spurlin (espurlin@mpl-law.com), Brad Leber (bleber@mpl-law.com) or anyone in our office with questions or comments.   

Please see all of our prior updates at this link or if you would like to be added to our email list, please click here.   

Take This Job and Shove It!

I hope everyone enjoyed their Holidays and wish you the best for 2023.  Its time to get back to work with the General Counsel Corner.  Last week, the U.S. Federal Trade Commission published a notice of a proposed rule to outlaw non-competes in employment agreements.  The rule would apply to all types of workers including W-2 employees, independent contractors and interns.  Any State laws would be superseded by this new business restriction.  Exceptions have been put in place for business owners that stay on as an employee after the sale of the business or when an employer pays to train a new hire. 

The big question with this new rule is will it survive a challenge based on a little thing called the Constitution.  Legal arguments based on separation of powers (the FTC is independent regulatory body subject to review by the Legislature and this type of power is probably not part of what Congress delegated to them) and/or the right of an individual to enter into a contract will most definitely be made by opponents.    

Time will tell if this rule passes the Constitutional smell test.  However, if it does, there are certain to be more employees that are going to tell their employers to “Take this job and shove it” (David Allen Coe, 1977). 
 
Other items of interest:

As always, please don’t hesitate to email myself (jsanders@mpl-law.com), Andy Miller (amiller@mpl-law.com), Christian Miller (cmiller@mpl-law.com), Erik Spurlin (espurlin@mpl-law.com), Brad Leber (bleber@mpl-law.com) or anyone in our office with questions or comments.   

Please see all of our prior updates at this link or if you would like to be added to our email list, please click here.