We know that layoffs are one of the most difficult decisions an employer can face. They affect not only businesses but also the individuals and families who make up our community. While we hope this guide is never needed, we’re here to help if you do. Our goal is to provide Kentucky employers with the information and resources they need to navigate the process, understand their responsibilities, and connect employees with support as they move forward.
1. Consult Legal Counsel
Before announcing layoffs, consult an employment attorney to review your legal obligations, severance agreements, WARN Act requirements, and any other employment law considerations that may apply to your business.
2. Determine Whether the WARN Act Applies
If your business has 100 or more full-time employees, you may be required to provide 60 days’ advance notice before certain plant closings or mass layoffs under the federal Worker Adjustment and Retraining Notification (WARN) Act. Kentucky does not have a separate state WARN law. Learn more about the WARN Act.
3. Review Employment Agreements and Company Policies
Review any documents that may affect the layoff process, including:
- Employment contracts
- Offer letters
- Severance policies
- PTO or vacation payout policies
- Bonus or commission agreements
4. Prepare Final Pay
Under Kentucky law, terminated employees generally must receive all wages due by the next regular payday or within 14 days of termination, whichever is later. Review your company policies to determine whether accrued vacation or PTO must also be paid. Learn more here.
5. Decide Whether to Offer Severance
Kentucky employers are generally not required to provide severance unless it is promised in an employment agreement or company policy. If you choose to offer severance, consider having an employment attorney review the agreement before distributing it.
6. Coordinate Benefits
Prepare information for employees regarding:
- Health insurance continuation (COBRA, if applicable)
- Retirement plans
- Flexible spending accounts (FSA) or health savings accounts (HSA)
- Life insurance
- Employee Assistance Programs (EAPs)
7. Secure Company Property and Access
Prepare a checklist for collecting company property and removing access to business systems, including:
- Laptops and mobile devices
- Keys and access badges
- Company credit cards
- Email accounts
- Network and software access
8. Plan Employee Communication
Develop a communication plan before notifying employees. Decide who will deliver the news, prepare talking points for managers, and have written information ready regarding final pay, benefits, unemployment resources, and next steps.
9. Connect Employees with Available Resources
Providing employees with information about available resources can help make the transition a little easier. Consider sharing information about:
- Kentucky unemployment insurance benefits
- Kentucky Career Center services
- Resume and job search assistance via the South Central Workforce Development Board
We’re Here To Help
Kentucky Career Center, South Central Workforce Development Board, and Bowling Green Works are here to help. We connect affected employees with career services, job openings, resume assistance, training opportunities, and other local workforce resources.