Employment Law Commentary, October 2008

WEATHERING THE STORM: EMPLOYMENT ISSUES IN AN ECONOMIC DOWNTURN

Recent headlines paint a bleak picture of the economy in the United States and around the world: US Bails Out Fannie Mae and Freddie Mac! US Unemployment Rate at 5-Year Low! WaMu Becomes Biggest Bank to Fail in US History! Dow Plunges to 5-Year Low! Dutch Government Injects $13.5 Billion into ING Bank!

The recent economic downturn and market instability is prompting many employers to make tough decisions to weather the storm. Struggling employers have a number of options from which to choose: workforce reductions, voluntary exit incentive programs, temporary shutdowns, hiring freezes, and reduction or elimination of overtime work. But whatever the chosen alternative, employers must proceed with caution to avoid legal pitfalls.