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Craig Kovarik

Craig is member of the Firm’s Employee Benefits & Executive Compensation team (and a former Certified Public Accountant) who has spent his entire legal career helping clients navigate complex ERISA, tax and related laws pertaining to employer-sponsored benefit plans and compensatory arrangements.

As artificial intelligence (AI) continues to reshape business operations, many employers are reassessing workforce needs and organizational structure. For many organizations, workforce reductions or redeployments may be unavoidable as roles evolve, processes are automated, and business models change. While some organizations may ultimately pursue involuntary reductions in force (RIFs), others are exploring whether voluntary separation programs (VSPs) can achieve workforce‑reduction goals while mitigating legal, operational, reputational, and employee‑relations risks.

With the passage of the new federal tax bill on July 4, 2025, unofficially referred to as the One Big Beautiful Bill Act (OBBBA), employers and employees in overtime-heavy and tipped industries face new opportunities and responsibilities. Below are some key highlights of what employers need to know to better prepare for the changes.