What legal risk arises if HR uses cost as the primary criterion for selecting employees for a RIF?

• A. Violating wage and hour regulations
• B. Violations of privacy
• C. Breach of contract with employees
• D. Age Discrimination lawsuits

Answer: (D)

Using cost as the primary criterion for selecting employees for a RIF invites age-discrimination risk. Salary costs often correlate with age, since older employees may have higher compensation. Choosing who to lay off based on cost can disproportionately affect workers over 40, making the process appear biased against an Age Discrimination in Employment Act protected class. To reduce liability, RIF decisions should rely on neutral, job-related criteria applied consistently—such as performance, skills, tenure, and current business needs—with clear documentation. Wage and hour rules, privacy concerns, or contract issues aren’t the primary source of risk in this scenario.