Gunning Daily News

How to Legally Lay Off an Employee

January 12, 2012 5:30 pm

It's one of the toughest decisions for any employer, small or large: Should you lay off your employees, and how should you do it so you don't get sued?

The decision about layoffs is entirely up to you. But as for how to implement layoffs, here a few legal considerations.

You've been WARNed. The Worker Adjustment and Retraining Notification Act, or WARN Act, is a federal law that requires 60 days' written notice before a plant closing or a "mass layoff." The federal WARN Act applies to employers with more than 100 workers, but state versions of the WARN Act may apply to smaller employers, according to

Don't discriminate. Federal and state laws place some employees in a "protected" class. For example, the Age Discrimination in Employment Act (ADEA) prohibits an employer from treating older workers differently than others. So make sure your planned layoff doesn't discriminate.

Don't retaliate. Layoffs can't be in retaliation for a worker's complaint. That could be grounds for a workplace retaliation lawsuit.

Employees on leave. For employees on family or medical leave at the time of an announced layoff, an employer must show their leave is unrelated to the layoff, and that the worker would've lost his or her job regardless.

Members of the military.
The Uniformed Services Employment and Reemployment Rights Act (USERRA) requires employers to reinstate servicemembers to the jobs they would have held had they not been called to duty. An employer can't layoff a servicemember unless the employer can prove circumstances have drastically changed.

Continuing health insurance. Under federal law, most employers with group health plans must allow a laid-off employee to continue to pay for the same health coverage for a specified period of time.
Severance agreements. These offer an employee an incentive, such as additional compensation or benefits, in exchange for agreeing not to sue an employer. But remember, an employer can't force employees to sign a severance agreement. An employee must also get time to consider the agreement—either 21 or 45 days, depending on the worker's age, according to the Older Workers Benefit Protection Act.


Word of the Day

January 12, 2012 5:30 pm

Tenancy by the entirety. A form of joint ownership reserved for married persons; right of survivorship exists and neither spouse has a disposable interest during the lifetime of the other.

Question of the Day

January 12, 2012 5:30 pm

Q: Is there such a thing as “over improving?”

A: Yes. The last thing you want to do when undertaking a home improvement is go overboard. This means fixing up the home to the point where it becomes worth far more than nearby neighborhood properties.

Down the road, when you may want to sell, potential homebuyers will be reluctant to pay, say, $200,000 for your home when others are priced at $150,000. If they want to pay that kind of money, they will likely make a purchase in a neighborhood where most of the homes sell in that price range.

Carefully measure the cost of any improvements you want to make against the overall values in your neighborhood. Otherwise, you may not recover your costs or increase your property value significantly.

Chinese Drywall; Remediation Edition

January 12, 2012 5:30 pm

Picking up from our previous segment, I tapped for more details about 2011’s landmark global class action settlement, which will help thousands of American homeowners affected by problems with KPT Chinese drywall.

According to the report, under the settlement agreement, KPT will continue remediating more than 1,300 homes with KPT drywall, for class members electing that remediation option. All of the remediated homes will be inspected by environmental engineers, who will certify to homeowners that their homes are free of problem drywall odors and contamination.

Remediation is carried out without cost to the homeowner. Approximately 5,200 plaintiffs have specifically alleged that their homes contain KPT drywall; and of these, approximately 2,700 have submitted in some form evidence of the presence of KPT drywall.

The report also explained the three Remediation Fund options:

• Program Contractor Remediation Option. The Program Remediation Option provides the class member with the convenience of having Moss & Associates, who has been approved by the PSC and the Knauf Defendants, remediate the class member's property.
• Self-Remediation Option. The Self-Remediation Option provides the class member with the choice to select his or her own qualified contractor to remediate the property
• Cash-Out Option. The Cash-Out Option provides a cash payment with no obligation to remediate the property but the amount of cash will be less than the amount that would be expended under the two remediation options and the homeowner must take steps to assure, among other things, notice to subsequent purchasers of the presence of KPT drywall. also reports that homeowners will receive a stipend to cover the costs of moving and storage during the remediation, and to pay for damaged personal appliances. And an "Other Loss Fund" will reportedly reimburse class members for provable economic loss, short sales, and foreclosures caused by KPT Drywall.

The fund also will provide a mechanism for resolving disputed personal injury claims.

Word of the Day

January 11, 2012 5:50 pm

Tax sale. A court-ordered sale of real property to raise money to cover delinquent taxes.

Question of the Day

January 11, 2012 5:50 pm

Q: Are there such things as no-cost and no-fee loans?

A: You see promotions for them all the time. But banking regulators have gone after lenders who misrepresent these loans. The reality is that no-cost and no-fee loans may actually cost the borrower more over the long term because costs are often hidden by rolling them into the new loan through higher principal or interest.

The rates on no-cost loans are usually about 1/2 or 5/8 of a percentage point higher than the "full cost" rate.

A typical no-fee loan includes points and all fees in the loan principal, so the borrower does not pay or “see” these expenses at the closing. Instead, the borrower pays them over the life of the loan.

If you are looking to refinance, it may be possible to get a no-cost program that will lower your rate at no expense to you. Today, lenders are paying all closing costs, such as title fees, appraisal fees, and credit report fees. There are no loan fees or points, and nothing is added to your loan balance.

However, many lenders may charge a loan application fee and some restrictions may apply depending on the size of the loan.

7 Ways to Slash Your Grocery Bill

January 11, 2012 5:20 pm

If you’ve been clipping grocery coupons from the Sunday papers for years, you may have noticed a sad but noticeable truth: many of your name brand favorite coupons seem to be a lot less in evidence. “But,” says budget advisor Crystal Paine,” there are plenty of other ways to get more groceries for less.”

Paine, who wrote “The Money-Saving Mom’s Budget,” suggests ten ways to get more for your money:

1. Try the dollar store – Most carry off-brand canned and packaged goods—and some recognizable brands—costing far less than supermarket brands. Many also carry fresh produce at prices that may amaze you.
2. Shop the bread outlets – Check the phone book for outlet stores operated by many major brand bread bakers. The outlets sell their day-old breads and sweets for as much as 50 percent off supermarket prices. Most products have a use-by date anyway, so stock up the freezer and save big-time.
3. Use less soap – Get more out of your laundry soaps, dish soaps and shampoos that what the package recommends. In most cases, you won’t notice a difference in cleaning power, but you will find you are replenishing them less often.
4. Ditch the cold cereal – It’s an expensive breakfast. Make and freeze pancakes or waffles and store them in the freezer, toaster-ready. Try less expensive individual oatmeal packets. Throw milk or yogurt and over-ripe fruit in the blender for an inexpensive smoothie.
5. Use the freezer – If milk is getting ready to expire, put it in the freezer. Same for cheese and other dairy products—and fruit, cut into chunks and bagged. Use them later for puddings, smoothies, and other recipes. Grate the cheese for casseroles.
6. Shop less often – Doing so will save you money by forcing you to work your way through your food cabinets, freezer and fridge to come up with dinner ideas.
7. Try reusable water bottles – Don’t buy disposable bottled water. Buy reusable bottles at the dollar store, label one for each family member, and wash and refill every night.

Are You a Renter? Some Things to Consider

January 11, 2012 5:20 pm

Since the rental market is expected to thrive in 2012 with more homeowners either being forced to consider renting, or renting out their space, we checked in with Jessica Bosari, a writer for, for some advice.

How do renters help protect themselves from landlords whose property goes, or is about to go into foreclosure?

Bosari says property owners are typically aware they are undergoing financial trouble, but as a tenant, you will probably have no idea. You will probably learn about the problem the day the property owner is served with foreclosure papers.

This leaves very little time to find a new place to live before you the court forces you to vacate your current apartment. But a little advance notice can help you arrange a move before it is too late.

That's where Bosari says background research can save time, money, and stress.

The best time, she says, to learn about the financial problems of a property owner is before you move into the building by looking into the building owner’s public financial records.

If the property owner is holding a lien or has filed bankruptcy in the past, you would do better to find a different property for your new apartment. Bosari says the property owner will probably not be forthcoming about any financial problems, and you do not want to learn about them a month after moving into the building.

Generally there is a pattern of foreclosure, Bosari says. Property owners who are having trouble paying their bills will usually have a string of financial problems that you can research through your local county or town assessor’s office or website.

These locations will have a record of any liens that already held against the property owner.

Plus, Bosari says you can also discover if the property owner has filed for bankruptcy or some other form of financial assistance.

Any indication of financial instability, she says, is a red flag that the property is not a safe place to begin a rental contract. Keep shopping until you find an apartment with no financial troubles attached.

Money and Moving: 5 Ways to Cut Costs

January 11, 2012 5:20 pm

According to Worldwide ERC, a workforce mobility association, the average family spent over 12,000 dollars on shipping household goods during a move in 2010. Between closing costs and property taxes, buying, selling and owning a home is an expensive ordeal. When you factor in moving costs, it’s enough to make anyone feel overwhelmed. Below are 5 ways to save money during your move.

Make deductions. Did you know you can deduct moving expenses from your taxes? If you relocated for work, you may be eligible to deduct packing, transporting and storing costs from next year’s taxes, so be sure to save those receipts!

Rent your own truck. Renting a truck and doing the move yourself from start to finish is the cheapest way to move. It requires more effort, but it saves money. Ask friends and family to help, or hire neighborhood teens to help with the packing and lifting. And don’t forget that fuel and mileage charges can differ immensely between companies, so do your research before hiring.

Timing is everything. The height of moving season is the summer, when the kids are out of school, the weather is ideal for packing and in general, most people have relaxed schedules. As a result, many movers offer discounts in the off-season. If it’s at all possible to postpone your move, attempt to relocate between October and April to score those off-peak prices.

Get it delivered. Many companies, including PODS and 1-800-PACK-RAT, that will deliver a portable storage unit to your place. You will save money by packing it yourself, and then the company will come back to pick up the unit and bring it to your new place.

Recycle packing Supplies. Moving companies often over-charge on packing supplies, so use them as a last resort. When it comes to packing supplies, you can save money by using what you have. Pack in boxes, suitcases, bags and bins you already own before buying supplies. And if you do need more, try purchasing your packing material from a recycled box company or ask local businesses for old boxes that they plan on tossing.

Dude? Where’s Your Car? Exploring the Legal Steps Needed to Repossess a Car

January 11, 2012 5:20 pm

What are the legal steps necessary to repossess a car? If you're behind on your payments, you may find your car has been repossessed—sometimes, without your knowledge or consent.
Laws differ in each state, but here are some general principles.

Seizing the car

In general, a creditor can seize a vehicle as soon as a lessee "defaults" on a payment, according to the Federal Trade Commission. Check your loan or lease agreement, which should define what a "default" is. Even missing a single on-time payment may be enough.

A creditor can legally repossess a car at any time, without notice, no matter where the car is parked (unless it's inside a part of your house, like in a garage). But repo men can't use physical force or threats. If they do, it could be considered a "breach of the peace," and the repo men could face fines for damage.

Selling the car
In general, a creditor who repossesses a car legally can sell that car to another buyer. But some states require a creditor to tell you the date of auction or impending sale so you can try to buy back the repossessed car. Other states allow you to try to "reinstate" your loan by fulfilling back payments and entering into a new contract with your creditor.

Personal property inside the car
In general, a creditor cannot keep or sell personal property found inside a repossessed car. A lawsuit may be warranted if some of your personal items are unaccounted for.
Deficiency judgments

After a creditor sells a repossessed car, laws may still make you liable for paying the "deficiency"—the difference between what you owe on your contract and the resale price of the car.
Creditors can take you to court to enforce a deficiency judgment, but they could be out of luck if you have a good defense -- for example, if the repo men breached the peace when repossessing your car, or if a creditor waited too long to sue you. You may want to consult an attorney to ensure the best possible outcome.