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Avoiding Risky Layoffs - 5 Tips for Small Businesses from Attorney Dan Levine
Boca Raton, FL (PRWEB) July 15, 2008 -- In today's troubled economy, "how to let go of employees" is one issue that's critically important for many small businesses that are struggling to make ends meet.
"For those companies that feel forced to lay off employees, it's important to know how to manage the termination process in a way that doesn't expose them to legal and financial risks down the road," said attorney Dan Levine, a leading expert in labor and employment law.
The legal risks Levine mentioned are all too real. For example, the U.S. Equal Employment Opportunity Commission (EEOC) recently reported record increases in discrimination claims across-the-board: 18% for retaliation, 15% for age, 12% for race, 14% for pregnancy, 7% for sex and 14% for disability. Reference: http://www.eeoc.gov/stats/charges.html, http://www.eeoc.gov/press/3-5-08.html
Many of these EEOC claims may not be caused by real instances of discrimination - rather, they may instead be the result of mishandled terminations that cause ex-employees to feel compelled to "get even." That is to say, by not doing the right thing, companies are giving their ex-employees either financial or personal motivations to sue the business.
According to Levine, there are several points small businesses should consider when letting go of employees:
1. "Get a Release" - The importance of getting the employee to sign a 'release from all claims' during the termination process cannot be overstated. This document can help shield the business against future civil suits. However, companies need to make sure the release conforms with age discrimination guidelines.
2. "Offer a Severance Package" - It's a mistake to think that severance packages are only offered by big corporations to high level executives. The reality is that any business can put together a reasonable severance package for its employees. These don't have to be expensive and they can be tailor made for any employee, from C-level to secretary. SPs can go a long way in cooling off an angry or hostile ex-employee.
3. "Cut Your Losses" - Don't challenge unemployment claims. This mistake probably leads to the most revenge-motivated discrimination suits. It's better to cut your losses on this one.
4. "The IC Mix-Up" - Know the legal definition of an independent contractor. An IC may technically qualify as a company employee, which increases a company's liability when terminating them.
5. "Be Nice" - Generate goodwill on the way out. Pay for accrued vacation/sick time, company cell phone bills, etc. By being nice, even to those whom you feel don't deserve it, a company can avoid motivating an ex-employee to get even by filing a lawsuit, grievance or claim.
For more information about the risks posed by layoffs, visit www.sbwlawfirm.com.
ABOUT DAN LEVINE
Attorney Dan Levine is Board Certified in Labor and Employment Law by the Florida Bar and a shareholder in the law firm Shapiro, Blasi, Wasserman & Gora P.A., in Boca Raton, FL. A leading expert in employment law, Levine has handled thousands of employment disputes over the past 13 years. Reference: www.sbwlawfirm.com
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