Monday, February 8, 2010 Home

How to Avoid Litigation When Downsizing in a Recession

Established processes and procedures will help protect your business in the event of layoffs or cut-backs.

Over the past twelve months, close to three million jobs have been lost to U.S. employers, the most in half a century, and in January federal unemployment surged past seven percent. If your company is considering downsizing, you must prepare your organization first. History has proven that when the economy is down and layoffs are up, employment litigation and lawsuits skyrocket.

What are you doing to protect your organization?

Experts recommend that employers act slowly and cautiously before downsizing, as the process is fraught with pitfalls and dangers. In fact, many employers opt to hire outside professionals to assist them in their layoffs, and in some circumstances, to manage the entire termination process.

CPEhr - Assisting employers comply with layoffs and downsizing since 1982.

For the past 27 years, CPEhr has supported employers through the entire layoff process, to help reduce their employment liabilities and administrative burdens.

Creation and implementation of compliant termination procedures
ADA Compliance consulting
Management Training on proper terminating procedures
Consultative support
On-site termination assistance
Exit-Interviews
Severance Packages

To learn more about CPEhr's Downsizing and Layoff Services, email us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or complete the short form below. One of our Business Consultants will contact you for a free analysis of your termination procedures.

Client Testimonials

"The knowledge that CPEhr is on my team and shares my responsibility of being an employer provides me tremendous peace of mind. If any HR issue may arise, I know I can pick up the phone and there is someone at CPEhr to help." - President, Financial Services

“For the past 7 years, CPEhr has helped reduce our liability of being an employer, and has freed up our time to focus on our core business. California is one of the toughest states in which to do business, but CPEhr’s experts know the laws and protect our company." - Owner, Retail Franchise Chain

“I have run this practice for more than a decade, but knowing CPEhr is there to guide me through any employee matter offers tremendous peace of mind. Now, instead of being distracted by minor personnel issues, I can focus on the business. CPEhr has truly become our partner.” - Executive Director, Cardiovascular Medical Clinic

California is one of the toughest states in which to do business, but CPEhr’s experts know the laws and protect our company. As a CEO you simply don’t have the time keep track of all the new legislation. The cost savings we experience by having CPEhr protect us far outweighs their fees.

CEO,
Retail Franchise Chain

About HR Outsourcing

Human Resources Consulting, Outsourcing, Professional Employer Organizations (PEOs) and Employee Leasing firms are all becoming increasingly popular in today's complex business environment. In states where labor laws are particularly complex, such as California, this HR Outsourcing trend is even more pronounced.

Outsourcing is the practice of using an outside specialist to handle work that is normally performed by in-house staff and resources. It is common for small business to outsource their payroll processing, accounting, facilities management and many other important functions — often because they have no other choice. Many large companies turn to outsourcing to cut costs. In response, entire industries have evolved to serve company's outsourcing needs.

Benefits of HR Outsourcing

There are many benefits to California human resource consulting and outsourcing. California Human Resources Outsourcing, Employee Leasing, HR Consulting and PEOs have become a popular trend for small businesses looking for an ROI on their HR function. This is accomplished by allowing companies to shift responsibility of nonessential jobs that can be handled easily by off-site experts in the area of payroll, benefits, and other complex workplace regulations. Reasons for California HR Outsourcing include: reducing litigation risks, improving compliance, improving accuracy, taking advantage of technological advances, and offering additional benefits.

Los Angeles Human Resources consulting and outsourcing firm CPEhr is at the forefront of the local HR consulting market. It is apparent that many organizations today are making the decision to outsource, and it is crucial to partner with a California Human Resources consulting firm to ensure your compliance. In today's global marketplace outsourcing has made itself accessible to many organizations on a National and International level. Outsourcing is successful in increasing product quality and/or substantially lowering firm and consumer costs (e.g., increases the quality to cost ratio). Because outsourcing allows for lower costs, even if quality reduces slightly or not at all, productivity increases, which ultimately leads to increased corporate revenues.

About PEOs and Employee Leasing

Professional Employer Organizations (PEO) and Employee Leasing Companies

A Professional Employer Organization, or PEO, also known as an Employee Leasing Firm, is a company that specializes in managing all the responsibilities relating to employees. From HR, payroll, workers’ compensation insurance and benefits, a PEO Employee Leasing Company becomes the legal employer of the worksite employees and becomes the Administrative Employer.

Particularly in California, where governmental regulations weigh heavily on California small business owners, more companies are turning to California employee leasing companies, California PEOs and California Professional Employer Organizations. A California Employee Leasing Company will legally hire a company's current employees, thereby making the PEO the "employer of record" for taxation and insurance purposes. The employees are then “leased” back to the client under a co-employment arrangement. The California PEO assumes responsibility for all payroll obligations and tax filings, workers’ compensation insurance, health benefits, as well as all the associated administrative paperwork.

Los Angeles Human Resources consulting and PEO firm CPEhr is at the forfront of the California PEO and Employee Leasing Companies industry. For small businesses, PEO and Employee Leasing is a more cost-effective means to access health care and other benefits for their employees. By contracting out all responsibilities related to its human resources policies and state laws, the company using the California PEOs offsets a great amount of employment risk.

The small business need for human resources makes California Employee Leasing Companies a perfect solution for small businesses. In fact, most employee leasing companies and PEOs target companies that have fewer than 100 employees.