As the global recession deepens and budget shortfalls spread to all sectors of the economy, city managers are struggling to deliver negative news to workers. Faced with a $522 million annual deficit, San Francisco Mayor Gavin Newsom delivered pink slips to more than 15,000 city workers as part of a plan for “saving people’s jobs and city services.” In response to criticism over his characterization of the situation, Mayor Newsom replied that he was “lawyered up.” How can employers avoid legal liability in conveying bad news?