Kudler Regulatory Assisgnment

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Category: Business and Industry

Date Submitted: 02/22/2009 01:02 PM

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Due to Kudler Fines Foods decisions to expand its catering services aspect of its business and to partner with local organic produce growers, KFF has found that it will need to close several of its departments down for a period three months for refurbishing purposes. The departments that will be affected at each of Kudler Fine Foods stores will be the deli, confectionary, and on-site meal preparation. While Kudler Fine Foods employment at will policy provides management with the legal right to shutdown these departments, several legalities that the organization must consider prior to implementing any changes in business operations.

First the business should take into account what type of compensation benefits the organization is required to provide employees with that may be affected by KFF decision to shutdown temporarily. Mallor, Barnes, Bowers & Langvardt (2003) states:

The law protects employees after their employment ends is by providing unemployment compensation for discharged workers. Since 1935, federal law has authorized joint federal–state efforts in this area. Today, each state administers its own unemployment compensation system under federal guidelines. The system's costs are met by subjecting employers to federal and state unemployment compensation taxes.

Secondly, since the shutdown of the affected departments will only be for a short period the organization should evaluate all of its other departments and determine if the employees that will be impacted by the shutdowns can possibly be cross trained in other areas until the organization has completed it refurbishing efforts. This will prevent the organization from having to pay out unemployment benefits by continuing to employee the workers whose departments will be involved in temporary layoffs. Thirdly, If the organization does decide to lay off its workers management at KFF will need to decide on whether it would want offer the displaced worker the opportunity to return after refurbishing or...