10 ways to stay out of legal trouble while trimming staff — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

by Keith McMurdy

Even as we watch the stock market slowly recover, organizations are still laying off employees and searching for ways to cut overhead. It’s important to keep in mind that cutting staff often has implications beyond the hurt feelings and added work for the skeleton crew that remains.

If your organization is eliminating even one job, plan it carefully. A hasty layoff can create legal problems that cost more down the road than keeping the employee would have.

Here are 10 things to consider:

1. Consider the new COBRA subsidy. If you lay off workers, that cuts payroll. But the American Recovery and Reinvestment Act of 2009 says your organization has to pick up 65% of a departing employee’s COBRA payment for nine months if the involuntarily separated worker elects to stay on your health care plan.

2. Document your business reasons for the layoffs, whether you’re terminating one person or 1,000. Unl...(register to read more)

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