As employment lawyers, we are always stressing to our clients the importance of having up-to-date, legally compliant employee handbooks, practices and policies. During busy times, the response from many clients is as follows - "I've been meaning to get to that handbook for months but I've just been too busy."
 
A down economy is the perfect time to review your employment practices and policies. Updating your employment practices and policies is essential - especially when the laws are constantly changing. For example...

• Does your FMLA policy comply with the recently revised regulations?

• Does your internal disability accommodation policy comply with the Americans with Disabilities Act Amendments Act of 2008?

• Do you, as a New York employer, provide a copy of NY Correction Law Article 23-A to individuals subject to background checks?

• Do you have every new employee complete the updated Form I-9 which went into effect on April 3, 2009?

• Are your job descriptions accurate and up-to-date?

• Do your independent contractors fulfill the legal requirements for independent contractor status?

If the answer to any of these questions is "no" or "I'm not sure," take the time to address these issues now.

The challenging economy provides employers with an opportunity to re-examine their commission agreements and ensure that: (1) these agreements are in compliance with applicable law, and (2) the commission structures are properly aligned with today's economic realities.
 
New York law requires that commissioned salespersons have written agreements which (1) describe how monies earned and payable are calculated and paid out upon termination, frequency of reconciliation of recoverable draw, etc., (2) are signed by both the employer and the employee, and (3) are kept on file for at least 3 years.
 
Commission agreements should also give the employer/company the right to modify the terms of the agreement upon advanced written notice to the salesperson. This is critical, especially in times of economic uncertainty, when business starts to slow down and employers are faced with outdated commission structures.
 
As previously noted, focusing on keeping "key" employees motivated and empowered is important to the success of a business, especially once the economy (and job market) begin to improve. However, companies must do what they can to stay profitable, and so long as you maintain open lines of communication with your employees and treat them with respect, restructuring a commission arrangement is a sensible option.

Employers should take this time to nurture the relationships they have with current customers/clients. Get to know your clients better. Take the time to meet with them and brainstorm ways in which you can better serve their needs in the future.
 
Your current customers/clients are the "lifeblood" of your business and keep many employers "afloat" during tough economic times. Some employers are even re-assigning sales staff to maintain the most important, existing accounts. The bottom line -- make every effort to satisfy the needs of your loyal clients.

This is a good time to contemplate why your clients come to you. What are your core services/products? What type of services/products are you still selling, even in the down economy?
 
While many companies sell a vast array of products/services, most companies offer a particular product/service that drives the company's revenue more than others. During these challenging times, focusing on maintaining core business/competency is a vitally important strategy.

While these are unsettling times for most business owners and executives, it is quite timely to look for opportunities to re-shape your business. By concentrating your efforts on your employees, employment practices/policies, clients, and core competencies, you can solidify your position in the marketplace and plan for the coming economic upturn.