Workforce Management
Workforce Week
February 2009
Commentary: A recession is exactly the wrong time to cut the budgets for training in support of legal compliance issues. In addition to preventing management mistakes that may give rise to legal claims after a negative job action, training can provide an important affirmative defense. Should a company be taken to court, every training dollar spent can be cited as proof of a good-faith effort to comply with worker protections. By David G. Bowman
Financially challenged companies that are facing the worst economic crisis in 60 years may be encouraged by bottom-line-conscious executives to cut costs by forgoing legal compliance training for their managers and HR staff. But major spikes in harassment and discrimination lawsuits following past meltdowns, including the 2000 tech bust, indicate that not "training the masses"—particularly after a year of significant expansions in protected worker categories—ultimately could cost businesses far more than they initially save.
If government reports are correct, the U.S. has been in a recession since December 2007, already longer than the 10-month average for post-World War II recessions, with no end in sight. Some of the biggest impacts from recessions are layoffs and unemployment, which, unfortunately, are also some of the strongest drivers of workplace litigation.
As in past downturns, today’s soaring unemployment rates reflect not only major reductions in force but also an increasing number of performance-based terminations. Many companies in distress are having difficulty providing sufficient severance packages to discharged employees. Factor in the stock market’s brutal plunge and greatly reduced 401(k) values, just as baby-boom workers approach retirement, and you have the recipe for employment insecurity.
Unemployment drives claims In this high-stakes climate of heightened worker insecurity about pay, benefits and merely keeping a job, any management mistakes in hiring, performance management, firing, restructurings, overtime pay or evaluating reasonable accommodations and leaves of absence could trigger an avalanche of claims, including major class and collective actions.
Full Story: http://www.workforce.com/section/03/feature/26/15/79/index.html
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