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Employee Benefit Considerations When Making Workforce Modifications

As economic conditions remain uncertain, many employers are taking a look at reducing costs and potentially making changes to their workforce. Apart from a myriad of concerns relating to employment laws, workforce modifications will also trigger certain Internal Revenue Code (Code) and Employee Retirement Income Security Act (ERISA) considerations affecting employee benefit plans and programs. Because these rules are so complex and highly dependent on the facts and circumstances relating to workforce changes, employers should work with ERISA counsel in advance of making any workforce changes to better prepare for how such decisions impact employee benefit plans rules and regulations. Below are some high-level issues to consider. Read more…