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Mercy Health System Laying Off Arkansas Workers in Leadership Roles

Mercy Health System Laying Off Arkansas Workers in Leadership Roles

Mercy Health System, which employs 1,600 people in Rogers, Arkansas, announced a round of layoffs in June of 2015. The company employs tens of thousands of people across the country. These layoffs are an attempt to cut employees at the management level in response to rising costs associated with the Affordable Care Act (ACA). It is expected that many workers in Northwest Arkansas will be offered severance packages.

The layoffs will affect up to 400 employees in Arkansas, Missouri, Kansas and Oklahoma. The company blames its financial woes on the ACA, also known as Obamacare, as well as a failure by many states to expand Medicaid programs. Arkansas has expanded its program.

Many of those who will be laid off from Mercy Health System are in management and leadership positions. The company claims these workers will be offered severance packages, which are tools that can protect a company while easing the difficulty many employees have with their transition to a new job. These packages usually consist of money and assistance finding new employment opportunities. The money can come as a lump sum or be paid periodically like a paycheck.

It is not yet known what types of payment packages will be offered by Mercy Health System to its Rogers, Arkansas employees. Severance packages can vary in size and scope based on a variety of factors such as an employee’s compensation, the duration of their service to a company, the likelihood of finding new work quickly and the restrictions that the agreement places on the employee.

Employees may give up certain legal rights by accepting a payment package. Forfeited rights often include the ability to file for unemployment and the right to bring a lawsuit alleging that the employee was terminated wrongfully. To comply with state law, Mercy will have to offer packages in line with their established policy or any employee contracts.

Whether you are an individual faced with the prospect of accepting a severance package or an employer seeking help negotiating and drafting these agreements, you should seek professional help. The business law attorneys at the law firm of James & Carter PLC support businesses and individuals during layoff negotiations. Our firm serves clients at the many large businesses in the Bentonville and Rogers areas. To speak with an experienced and knowledgeable attorney, call us today at 866.716.3242 or contact us online.


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