Approach Layoffs Carefully During Economic Downturn
The Connecticut Employment Law Blog, in a post by Daniel Schwartz, offered some good advice for employers managing through the present economic downturn (“Five Laws and Issues Employers Should Think About In This Credit Crunch and Economic Crisis”).
For small businesses, I would particularly emphasize the points concerning layoffs. We’ve mentioned from time to time that anti-discrimination laws at the state and local levels apply to some fairly small businesses with a minimal number of employees. We’ve also mentioned that businesses should not take too much comfort in thinking that they employ independent contractors rather than employees because independent contractors can be redefined to employees during litigation. We’ve also mentioned that there is not too much comfort in the “employment at will” policies of states like New York and Connecticut because anti-discrimination laws trump the employment at will policies.
During an economic downturn, businesses may be tempted to cut staff quickly without much planning. We suggest a more careful approach and the CELB post provides sound advice for proceeding with appropriate care.
