Tips on Workforce Downsizing
Although many believe the recession is leveling out, unemployment rates are still on the rise. The national average for July 2009 was 9.4%, up from 9.1% in May 2009. The unemployment rate for Texas saw a significant increase up from 7.2% in May 2009 to 8.2% in July. The rate for the local DFW area posts a higher unemployment rate, 8.3%.
With many companies being faced with reducing their workforce, exposure to various employment law claims can arise. Thus, as an employer, you should be mindful that treating employees with respect, and being clear and truthful as to the reason for termination, can go a long way in achieving an amicable separation. If the termination decision is based on economics or downsizing, explain that to the employee. If the termination decision is based on performance or a policy violation, explain that as well. Also of importance is to make sure that you are neutrally and uniformly adhering to your company's policies, including any applicable progressive system of discipline. Accurate documentation of the reasons for termination is also key in defending future claims.
One of several potential claims an employee often files upon termination is a claim for unemployment benefits through the Texas Workforce Commission. Generally, unless an employee voluntarily quits or is terminated for workplace misconduct, the employee should qualify for unemployment benefits.
Should an employee be terminated for workplace misconduct, the Texas Workforce Commission will most likely request copies of applicable written policies (and notice of the policies to the employee) and documentation supporting the termination decision, including evidence the employer has followed its progressive system of discipline policy. Having such policies and proper documentation is of critical importance in defending against misconduct-based unemployment claims.
Other potential claims that companies are exposed to when terminating employees include the various state and federal discrimination and retaliation claims. Policies which are uniformly and neutrally applied can also be critical in determining the viability of such claims. But, be aware that legal compliance obligations (and the policies required) can vary significantly from employer to employer depending on a number of factors. Employers should, therefore, be advised at to which laws apply to their company and implement corresponding policies, procedures and postings accordingly. It is also recommended that these items be reviewed and revised on a yearly basis given the frequent changes in the area of employment law. After all, as is often the case in defending against employment law claims, "the best defense is a good offense".
The Trend of Private Mediation
By Laura Roach
Couples going through a divorce believe both husband and wife must hire attorneys and incur the expense of litigation (depositions, experts, written discovery etc.) to get divorced. That is not the case. Although regularly used in other states, a process known as Private Mediation is relatively unknown in Texas. Albin | Harrison | Roach attorneys Curtis Harrison, Sharon Corsentino and Laura Roach are all trained mediators and able to assist parties with their divorce through private mediation.
The process is simple compared to litigating a divorce. The only agreement the parties need to make on their own is to go through the process of private mediation for resolving their divorce. If that is the agreement, contact one of our family law trained mediators for an appointment with yourself and your spouse. During the initial consultation, our mediators will explain the process of private mediation. This will include a discussion about the ground rules during mediation and positive negotiations, and the confidentiality of mediation. Other topics will be addressed including, the documents that will need to be prepared and exchanged, the need for candid discussions concerning the marital property and any issues regarding the care of the children that need immediate attention. Finally, the mediator will attempt to determine the amount of mediation sessions needed and costs associated with the process. Each session shall last around 2 hours and will occur bi-weekly until all issues are resolved. The mediator is paid usually on an hourly basis, with a retainer paid upfront.
The mediator will not give legal advice but can provide guidance for the clients to resolve any pending issues. Most of the meetings will be with both parties and the mediator and if needed, experts to assist in any financial or children issues.
Overall, this process is an emotional and financial expense for you and your family. Additional benefits of this process can be explained at the initial consultation.
Taxes and Divorce
While April 15 th is 7 months away, it is never too early to start thinking of federal tax liability when contemplating the terms of your divorce. It is always advisable to consult a tax professional or financial advisor experienced in tax issues to assist in the process of evaluating property settlement options. Division of rental property, retirement plans, stocks and other assets may all have tax consequences that warrant special tax evaluation. Remember that spousal support (alimony) is tax deductible for the person paying it and taxable income to the person receiving it, in contrast child support has no tax consequence. Lastly, before you agree to relinquish your right to claim the dependency exemption for your children ask your tax professional to educate you on the applicable IRS regulations.
