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Layoff Decisions: The Employer’s Perspective

Highly intelligent and thoughtful employers are usually too savvy to “lay-off” most of their older, more experienced workers just because their salaries may be a bit higher than some of the younger employees on the payroll. Nevertheless, “lay-offs” have become an all-too common part of running American businesses today. While cutting down on the number of workers may sound good when profits are sliding downwards, there are often better alternatives.

Employers should first consider some of the other options set forth below. If they truly can't avoid a few layoffs, they must act in a highly responsible and legal manner while letting people go.

Alternatives to Simply Laying off Employees

  • Consider a freeze on hiring, raises or promotions. Unless your company is in serious financial trouble, natural attrition caused by employees leaving and others reaching retirement age may adequately reduce the size of your workforce over an extended period of time;

  • Look for other ways to cut costs. For example, instead of opening a new branch office that’s likely to be rather expensive, consider postponing that decision until it's more affordable. That way, you can retain all of your most productive workers;

  • Consider asking employees to accept fewer work hours and possibly lower wages to keep their jobs. Be sure to set forth a limited time for this approach – so you won't be tempted to leave it in place any longer than is absolutely necessary;

  • Stop allowing any workers to put in overtime hours. This step alone can save a company significant funds over a fairly short time period;

  • Offer a number of employees (generous) early retirement packages. If enough people accept these, you may not need any layoffs.

Speak with a Lawyer before Taking Any of These Actions

Your Peachtree City business lawyer is fully aware of all of the state and federal laws that must be honored when laying-off employees. Be sure to ask how you should move forward before taking any of the steps suggested above.

To obtain help with handling all of your Georgia business planning needs, please contact the Law Offices of Shane Smith today.  You can schedule your free initial consultation with a knowledgeable Peachtree City estate planning attorney by calling: (770) 487-8999.


Shane Smith
Advocate for the Seriously Injured in Georgia