NFIB

Avoiding Employee Wrongful Termination Suits
05/ 21/ 2003

by Jeffrey Moses

Even when an employer has valid reasons for terminating employment, a former employee may sue for wrongful termination. To protect the company from lawsuits--and to maximize the chance of success in a suit--employers should carefully follow guidelines suggested by legal experts.

At the time of hiring, provide information to new employees about activities that constitute grounds for dismissal. Be as precise and complete as possible, and present the information to new employees in writing.

Work closely with HR personnel and/or department managers to make sure all employees are treated equally--and that promotions, discipline and increased benefits are fairly and equally distributed.

When considering terminating an employee, carefully document all activities that indicate poor performance, insubordination, harassment, etc. Documentation should include written observations and opinions of fellow workers, managers and supervisors. The more detailed and accurate the documentation--and the more the documentation establishes a pattern of poor performance or violation of company standards--the stronger the company’s case would be in a suit. The documentation should include all discipline and warnings (both oral and written) given to the offending employee.

Before terminating an employee, consult with an attorney experienced in the field to make sure you’ve covered all possible angles a wrongful termination suit could take.

Legal experts advise companies not to automatically pay employees a settlement when threatened with a wrongful termination lawsuit. This sends a message to other employees that the company is an easy target.

Consult with your attorney or business adviser to determine if you should purchase insurance that would cover legal fees and costs of employee wrongful termination suits.

Small Business Sound Off
Does this story hit home?  Share your story with us