With recent Labor Department data showing the highest layoff rates in five years, related employment suits will likely rise. This has historically been the case and such trends tend to happen for several reasons. 

Employees who are laid off during a recession would not necessarily be fired in a better economy, so they believe they have grounds to sue for unfair termination. Other employees who have been let go may need income to stay afloat and think a lawsuit could be a good way to generate revenue. Or if a group of laid-off employees all share a common trait (for example, all are older than 50 or all are women), this may  naturally lead them to consider a class action suit. 

According to the Equal Employment Opportunity Commission (EEOC), 2007 had the highest number of incoming private sector discrimination charge filings since 2002, along with the largest annual increase since the early 1990s. All this combined with the expected onslaught of age-bias lawsuits from baby boomers means that risk managers must work harder than ever to avoid employment-related lawsuits during the current recession. 

The following are five of the best ways to stay out of court when considering workforce reductions: 

1. Establish the methods used to determine who will be laid off. This should be based on documented performance results such as sales totals or some other quantifiable metric. The key is to be as objective as possible and train managers to carry out terminations in such a manner. 

2. Document everything, from the reason for the layoff to the selection procedure, including any problems or concerns that occurred during or after the communication meeting. 

3. Communicate staffing changes before the layoffs begin. Always be as forthcoming as possible with your staff regarding changes in the company. This is better than letting the staff learn of changes through rumors or the media. 

Tell the employees what else the company has done to maintain costs (e.g., cutting down on expenses, having a holiday brunch instead of a lavish party, maintaining supply costs, allowing telecommuting or providing job-share options). This will show that the company has tried to maintain costs in other ways. 

There should be one consistent message about the reasons for staff reduction and the criteria used. Express the overall reasons for layoffs to your staff as opposed to reasons pertaining to the individuals who were let go. 

When it comes time to inform individuals that they are being laid off, be sympathetic and, most of all, respectful. Not only will it help mollify a difficult situation for both parties, but what is said during the layoff process can later be used in court proceedings. Do not make false promises or be dishonest to the employee during the communication meeting. Managers should not imply any compensation outside the realm of the severance package. To ensure these protocols are followed, always have two people present during the communication meeting. 

4. If possible, extend good will by offering severance packages that include services like continued health care for a period of time. Just this cordial gesture by itself could end up preventing a lawsuit. With concern for the employee's well being, provide information on an employee assistance program (if there is one in place) or the number to a temporary placement agency. And be sure to let those third party providers know you are doing this ahead of time so they will be prepared to assist your former employees. 

5. Share any good company news or improvements with current employees to keep morale as high as possible. 

Susan Tribby is the associate vice president of risk management for AlphaStaff Group, Inc., a human resource outsourcing company.