If this downturn in the economy makes it necessary to lay off workers, there are a number of legal issues for you to consider before you take any action:

1. Depending on the size of your organization and the number of people you expect to terminate, there are state and federal laws mandating employee notifications and the payment of severance.

2. State laws dictate when an employee's final check must be distributed and the payment of vacation pay. Each state also has specific reporting requirements of unemployment compensation.

3. Anti-discrimination laws must also be considered. Discrimination claims are usually based on age, race and gender. Check to make sure your layoff plan does not have an adverse impact on a protected class.

4. You may also want to require that affected employees sign a separation agreement before receiving severance payment. Here again, mandates under the age discrimination laws must be considered.

5. Federal COBRA rules must be followed and terminated employees may also make claims under ERISA.

There can be tremendous risk in downsizing your workforce. The law provides employees numerous avenues for legal challenges. Throw in the emotional volatility of the situation and you potentially have a lawsuit waiting to happen.

Take the necessary steps to minimize your risk. Seek advice before taking any action. Don't compound an already difficult economic situation with an expensive lawsuit.

I have developed a toolbox that contains everything you need to train your managers and employees. Having personally trained hundreds of managers, supervisors and employees on how to prevent sexual harassment from occurring in their organizations, I have designed this toolbox to provide you these same training tools.

Call me at 207-967-0837 to learn more about this inexpensive solution to your legally mandated training requirements.

I will be speaking at the Maine Municipal Association's Annual Conference on October 9. The topic will be "Preserving Your Volunteer Fire and Rescue Department." I will be co-presenting along with the Town Manager and Fire Chief from Falmouth, Maine.

I will be speaking before the Southern Midcoast Maine Chamber on October 16. My topic will be "Customer Service, Cheers Style."

These are tough economic times. They key is to stay focused and avoid the panic mentality we see daily on the news. We'll get through this just fine. As always, I welcome your comments. Feel free to contact me anytime at 207-967-0837 or rick@dacri.com