Nearly 700,000 workers have lost jobs this year as companies respond to economic uncertainty, but employment law experts warn that poorly executed layoffs create legal liability and productivity damage that can exceed intended cost savings. From federal WARN Act compliance to state-specific notification requirements, CCI contributing writer Nancy Mann Jackson explores alternatives to layoffs and humane practices for companies that must proceed with cuts.
So far this year, employers have laid off nearly 700,000 people, led by broad cuts in federal government employment, while other sectors like retail and consumer goods have been hard-hit as well.
With about 45% of companies predicting they’ll shed jobs this year, corporate leaders are facing challenging realities: Global market uncertainty and shaky consumer spending may lead decision-makers to lean toward layoffs, but such moves risk internal morale and reputation damage that can be just as costly as the negative economic forces leaders seek to mitigate.
“It can often take businesses months or years to return to normal productivity levels after a layoff,” said Stephen Paskoff, president and CEO of consulting company ELI. “And because business priorities and markets change frequently, those workforce reductions may not even be necessary over…
