Coronavirus Resources

Coronavirus Resources for Dealers

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PREPARING FOR REDUCTION IN STAFFING

As dealers consider the safety of staff, customers, and vendors, they are inquiring about and preparing for the possibility of laying off some employees. Now would be a good time for members to consider implementing business continuity plans that would incorporate a 50% - 75% cut in on-site staff.

Decisions about reducing your staff can be extremely difficult, but we have compiled information to help you make informed employment decisions about your dealership operations.

Should dealers send a notice to staff that layoffs may happen in our dealership?
Yes, inform staff of potential layoffs through a general announcement or email.

What criteria does a dealer need to consider when deciding which employee(s) to layoff?

  • Necessity of the position
  • Performance of the employee
  • Ability to handle several different roles
  • Non-union members do not need to be laid off by seniority while most union contracts require layoffs to be done by seniority

How should my dealership handle union member layoffs?

  • Review your CBA
  • Layoff of union members is dictated by procedures in the CBA, and only concerns those members.
  • Consider seniority rights existing under any collective bargaining agreements.

Is the dealership responsible for providing any notices to employee(s) who are laid off?
Yes, provide COBRA and/or New York State Insurance Law election notice. Provide information on unemployment benefits

How long does my dealership have to provide the final paycheck?
Provide the final check, including any earned bonus or commissions by the regular payday for the pay period worked.

First steps: Consider the dealership staffing needs going forward for the next few weeks. You may need to re-evaluate in another few weeks – keep options open. Remember to consider skill level and other non-discriminatory factors in deciding whom to layoff.




Coronavirus Resources Overview