The grinding halt of the U.S. economy due to the COVID-19 pandemic as well as the Russia-Saudi Arabia oil price war has forced companies across industries, including in energy, to implement workforce reorganizations and reductions.

In making plans for adjustments to company staffing levels, employers must tread cautiously. There are numerous federal and state employment law issues that employers should consider before implementing a reduction in force or terminating individual employees. Failure to comply with the applicable statutes, which may require as much as two to three months’ advance notice of any covered layoffs, can negate some of the anticipated savings and lead to litigation. Advance planning can help minimize a company’s legal exposure for reductions in force. Such planning should include the following steps.