Should You Rehire Workers?
Suppose you let several employees go when your company was struggling. Now that the business has picked up, you might rehire those workers. After all, you can save time and money in the recruitment process and training.
Caution: Be aware of several potential pitfalls. Consider the following issues before you make an offer.
*You may be legally obligated under state law to hire certain employees in the wake of layoffs. Similarly, your company may have a definitive policy in place regarding rehires.

  • If you are hiring back certain workers, but not all of them, you could trigger a discrimination lawsuit. Check with your legal advisers.
  • Make sure you specify the nature of the job you are rehiring the person to perform. It does not have to be exactly the same job as before.
  • The workers you rehire should be able to perform the jobs that satisfy your current needs, not what they did in the past.
No matter what your inclination, do not let guilt factor into the decision. That is not a good way to run your business.
TAX ADVICE DISCLAIMER: In accordance with IRS Circular 230, any tax advice included in this communication, including attachments, is not intended or written to be used, and cannot be used by you or any other person or entity, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions, nor may any such advice be used to promote, market or recommend to another party any transaction or matter addressed within this communication. If you would like such advice, please contact us.

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