Question
You and your partner are the owners of a small business that was formed as a partnership under the laws of the State of Washington.
You and your partner are the owners of a small business that was formed as a partnership under the laws of the State of Washington. You currently have 14 employees. The majority of your employees are men (11) and you have 3 women on staff not counting yourself and your partner.
Due to a variety of issues your business has suffered a down turn as of late. Your current lease runs for another 3.5 years. Your partner is beginning to sound like he/she wants to cash out and move on. Your committed to making it work but know that employees have to be laid off. There is some stock loading and unloading that happens 2 time a month that requires lifting of boxes about 45 pounds total weight. You are thinking that maybe you should reform the company as an LLC or corporation.
So, you and your partner decide to layoff 8 employees. You notify the women and 5 men that you are going lay them off in 2 weeks. Since you still have stock arriving you decide that it is best to lay off the women who probably cannot lift the weight quick enough according to your partner. One of the women is pregnant and one of the men is home on paternity leave. It has been your experience that new moms and dads take lots of time off from work tending to the healthcare needs of their children and that costs time and money and runs up your healthcare insurance coverage costs.
What issues are you facing in laying off employees? Any discrimination concerns that might be raised by your employees. Oh by the way, one of the employees is an executive assistant and saw the email exchanges betweenyou and your partner about when and why you were laying off employees. What about your lease that has 3.5 years left to run? Are there other concerns that you should address or be aware of as you start down the road of cost cutting? What form of a company would be best for you and your partner if he or she sticks around?
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