The U.S. energy industry, which has been a job creator and economy driver for years, is in the throes of a significant downturn due to the dropping price of crude oil. Many energy businesses—upstream, midstream and downstream, large and small—have responded to the extended slump by reducing head count. Particularly at risk are thinly capitalized producers operating in the shale plays of Texas, as employers try to assess the damage and plan for the future.
Unfortunately, it is often the smaller players that are most at risk of mistakes in carrying out these reductions-in-force. Smaller producers, supporting players in the oil field services arena, and even mom-and-pop businesses reliant upon oil field workers may not be aware of the risks inherent in reducing staff. Many understand that it is often the only choice, but by not assessing the employment law risks, some wind up making the problem worse. And when labor is cut, real people take the hit and sometimes they come back swinging.
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