by Ugo Ukabam, Esq.
As the recession continues, many employers have had to turn to reductions in force as an unfortunate yet necessary cost-saving measure. The U.S. unemployment rate is at 10%, and about 15 million Americans are out of work. Count on some of those former employees to sue.
Recent government data confirm a trend toward litigation. The EEOC reported a 15.2% increase in private-sector discrimination charges in 2008 compared with 2007. And 2008 saw the largest yearly increase ever in race and age discrimination cases.
The reasons for the correlation are many. A tough job market means an increased likelihood of significant wage losses or pay cuts for workers. Laid-off workers have lots of down time in which ill will can fester. And RIFs breed the possibility of lawsuits involving several employees, which are more attractive to plaintiffs’ attorneys.
Faced with this trend, employers considering implem...(register to read more)