It is a nasty thing and one that we all wish to put off as long as we can. The recent downturn in the economy and the slowly rising fears of a recession in the United States is forcing sign suppliers, manufacturers, retailers and installers to consider the size of their organization and if there is a need to make cuts in human resources. And many companies that are not fiscally threatened are nevertheless electing to downsize in order to prepare for what they think may be difficult economic times ahead. Companies that are choosing to downsize rather than being forced to by economic difficulties have the luxury of time in which to plan and structure the cuts, thus reducing their exposure to legal liability. Many sign companies in the past have learned the hard way, downsizing is a process packed with potential litigation.
Statutes provide employees with numerous avenues for legal challenges.
Add to that the emotions created in the process, and the probability of litigation becomes that much greater. The smart players will undertake the downsizing carefully with focus on the legal and economic implications. In all cases, the responsible employer will be aware of the potential for litigation as a result of the downsizing and will take steps to minimize it. Before undertaking a reduction in force, legal advice is essential. The wise employer will obtain legal advice from an attorney, preferably one who practices in the rapidly changing area of employment law.