Recession Preparation 101: Plan for Potential Layoffs Ahead of Time

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The economy is strong. Unemployment continues to hover around 4%, the lowest it has been in decades. Yet there are growing concerns that a recession is coming.

The Dow dropped 800 points in two days at the start of October because of those concerns. Start making plans now so your business won’t be caught unprepared if the economic winds turn rough.

Recessions and Layoffs: The Perfect Litigation Storm

Recessions inevitably force employers to lay employees off. Layoffs invariably lead to disgruntled former employees who are unemployed, often in a poor job market. Some of them will claim they were laid off not because of the bad economy but because of their race, sex, age, or other protected factors.

In fact, the data show that during the 2008 “Great Recession,” age discrimination claims skyrocketed. That’s unsurprising, given the perfect storm of angry and cash-strapped former employees who couldn’t find new work.

There are, however, things you can do to minimize the potential for costly and distracting litigation following a layoff if one becomes necessary. Some of the best strategies for minimizing risk require you to begin planning or at least taking certain precautionary steps long before a layoff is actually announced. Read more here…

Source: HR Daily Advisor

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