Employer’s Guide to Defending Against Wrongful Termination Claims

Legal Framework

Several legal theories are commonly relevant to wrongful termination claims:

• Discrimination is the termination of an employee based on protected characteristics, including national origin, age (40 years or older), race, color, religion, sex (including pregnancy, sexual orientation, and gender identity), disability, or genetic information. Federal laws like the Americans with Disabilities Act (ADA), the Age Discrimination in Employment Act (ADEA), and Title VII of the Civil Rights Act of 1964 offer protections.
• Retaliation occurs when an employee is fired for engaging in protected behavior, such as reporting discrimination, helping with an investigation, or taking legally mandated leave.
• A breach of contract occurs when a termination goes against an implied agreement or employment contract.
• Termination for refusing to carry out an illegal act, report unlawful activity, or exercise a legal right violates public policy.

At-Will Employment vs. Contractual Employment

Under an at-will employment arrangement, an employer may fire an employee for any reason or no reason at all provided that the reason is not unlawful. Contractual workers, on the other hand, have particular terms and conditions that control their employment and termination, and many jurisdictions acknowledge exceptions to at-will employment.

• The majority of states in the United States follow the at-will employment doctrine. This means employers can fire workers for any legitimate reason. However, many exclusions exist, such as public policy exceptions and implied contracts.
• Employment Contracts: Workers with employment contracts are subject to particular termination provisions, such as notice periods, grounds for termination, and procedures. Wrongful termination claims may result from breaking these terms.

Putting Together a Powerful Defense

Thorough documentation and preventative actions are the first steps in a robust defense against wrongful termination claims.

Implementing Clear Policies and Procedures

Unambiguous and effectively communicated policies can minimize miscommunications and lower the risk of wrongful termination lawsuits.

Employment Handbook

The company’s expectations, policies, and procedures—including performance standards, disciplinary actions, and termination grounds—should be described in an employee handbook. Additionally, if applicable, it should mention that employment is at will.

Performance Evaluations

Frequent performance reviews record an employee’s accomplishments and areas for development. They should be fair, accurate, and reliable.

Disciplinary Action Plans

Provide explicit disciplinary guidelines that specify the actions taken for misbehavior, such as warnings, suspension, and termination. Keep track of every action you take and the justifications behind it.

Policy for Equal Employment Opportunity (EEO)

EEO policies that forbid harassment and discrimination based on protected characteristics should be implemented. Ensure every employee is informed and understands this policy.

Complete Documentation

When it comes to fighting wrongful termination claims, documentation is essential.

Maintaining Records

Maintain thorough records of all incidents or complaints, attendance, disciplinary actions, and employee performance. The accuracy, timeliness, and consistency of these records are essential.

Keeping Track of Performance Problems

Record specific instances of subpar performance, including dates, problem descriptions, and any attempts to resolve them. Enable staff members to make improvements and record their progress.

Recording Termination Reasons

Document the reasons for termination to ensure they are legal and per business guidelines. Avoid evasive or subjective justifications.

Staff Recognition

Acknowledge receipt and comprehension of company policies, performance reviews, and disciplinary measures from employees.

Legal Approaches and Factors

Employers must employ specific legal strategies and consider various factors when facing a wrongful termination claim.

Investigation of Claims

Thoroughly investigate any claims made by the employee. Interview witnesses, review documents, and gather all relevant information.

Legal Counsel

Engage legal counsel experienced in employment law. A wrongful termination attorney can advise on the best action, represent the employer in legal proceedings, and help negotiate settlements if necessary.

Discovery Process

Be prepared for the discovery process, which involves exchanging information with the opposing party. Provide accurate and complete responses to discovery requests.

Settlement Negotiations

Consider settlement negotiations to resolve the claim outside of court. Settlement can save time, money, and reputational damage.

Preparing for the Trial

Be well prepared in case the matter goes to trial. Prepare witnesses, collect evidence, and create a compelling legal plan.

Typical Defenses Against Claims of Wrongful Termination

There are several defenses available to employers against allegations of wrongful termination.

Reasonable, Nondiscriminatory Justification

Make the case that the dismissal was due to a valid, nondiscriminatory reason, such as misbehavior, poor performance, or business requirements.

At-Will Work

Declare the termination was legal and the employment relationship was at will.

Not Using All Available Administrative Remedies

Argue that the employee failed to exhaust administrative remedies, such as filing a charge with the Equal Employment Opportunity Commission (EEOC) before filing a lawsuit.

Statute of Limitations

Claim that the employee filed the lawsuit after the statute of limitations had expired.

Waiver or Release

Provide evidence that the employee signed a waiver or release agreeing not to sue the employer for wrongful termination.

Preventing Wrongful Termination Claims

Prevention is the best defense against wrongful termination claims.

Training and Education

Train supervisors on employment laws, company policies, and best employee management practices.

Consistent Application of Policies

Apply policies consistently to all employees. Inconsistent application can lead to discrimination claims.

Open Communication

Maintain open communication with employees. Address concerns promptly and provide feedback on performance.

Regular Review of Policies

Review and update company policies regularly to ensure compliance with current laws and regulations.

Specific Scenarios and Considerations

Different situations require specific considerations when defending against wrongful termination claims.

Discrimination Claims

When facing discrimination claims, gather evidence that the termination was based on a legitimate, non-discriminatory reason. Demonstrate that similarly situated employees were treated the same.

Claims of Retaliation

Prove that the termination had nothing to do with the worker’s protected activity to support retaliation claims—evidence of valid termination reasons before the protected activity must be presented.

Claims for Breach of Contract

Examine the employment contract and show that the termination complied with its terms if the employee alleges a breach.

Claims of Public Policy Violations

In situations where there have been violations of public policy, demonstrate that the employee was not fired for exercising their legal rights or for refusing to carry out an unlawful act.

Updates and Modifications to the Law

Employment laws are constantly evolving. Employers must stay updated on legal changes and adjust their policies and procedures accordingly.

Consult A Trusted Business Attorney  

Regularly consult with your business lawyer to stay informed about new laws and regulations.

Training on Legal Updates

Provide training to managers and supervisors on any legal updates and changes.

Policy Revisions

Revise company policies as needed to ensure compliance with new laws.

Contact a Wrongful Termination Lawyer

Know how to shape your policy for terminating an employee. Cover your legal bases by talking to a wrongful termination lawyer. Contact your business attorney now.