Wednesday, February 11, 2009

Tip of the Day: RIF on the side of caution -- conduct layoff audits

It's a sign of the times when an entire series of nondiscrimination tests is created to help employers prevent disparities when conducting layoffs ... sigh.

But so it goes. The big-thought thinkers at the Center for Forensic Economic Studies, have developed a series of pre-layoff Chi-square and T tests that analyze employer data to zero in on statistically significant disparities. Employers contemplating reductions in force (RIFs) can avoid or minimize exposure to discrimination claims through these pre-RIF statistical audits.

Audits begin with the same type of statistical review plaintiffs would perform in seeking to make out a prima facie case of discrimination. Using files commonly kept by employers, the RIF plan is tested for possible disparate impact on protected classes.

If such disparities exist, further analyses can be conducted to explain the disparities. Click here to find more information on the audit process and CFES.

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