Protect Business From Wrongful Termination Claims Tish Law

Bonisiwe Shabane

-Oct 30, 2025, 8:56 AM

protect business from wrongful termination claims tish law

Wrongful termination claims can be costly, time-consuming, and damaging to a business’s reputation. Employers must take proactive steps to protect themselves from lawsuits while ensuring compliance with state and federal labor laws. Understanding what constitutes wrongful termination, implementing best practices, and preparing for potential claims can help businesses avoid legal risks and maintain a fair workplace environment. Wrongful termination occurs when an employee is fired in violation of federal, state, or contractual employment laws. While most states, including Michigan, follow the at-will employment doctrine—allowing employers to terminate employees for any legal reason—there are several exceptions that protect employees from unfair dismissals. A well-drafted employee handbook outlining company policies, code of conduct, and disciplinary procedures can serve as a legal safeguard.

The handbook should clearly state that employment is at-will, except where contractual agreements state otherwise. One of the most effective ways to defend against a wrongful termination claim is to maintain thorough records. Employers should: Many wrongful termination claims stem from improper actions taken by supervisors. Employers should: If you suffered a workplace injury and your employer fired you shortly afterwards, you may face a disabling mix of stress, medical bills, and job loss.

You must understand your legal protections, the evidence you’ll need, and the practical steps to take. In this article, you will learn how wrongful termination due to work injury occurs, what laws protect you, how to evaluate if you’ve been wrongfully fired, and what to do next. Wrongful termination due to a work injury happens when an employer fires you primarily because you were injured on the job or because you filed a claim for benefits related to that injury. This is different from a lawful termination with legitimate performance or business reasons. In the U.S., most employment is “at-will,” meaning employers may terminate you for almost any reason except protected ones. However, if your injury triggered a chain of events that led to termination—especially if the employer retaliated for your claim—then you may have a valid case.

Several federal and state laws protect injured workers from unfair or retaliatory termination: Navigating wrongful termination claims can be a minefield, especially in states like California, where employment protections are robust. For businesses trying to thrive, protecting themselves against such legal risks isn’t just smart, it’s essential. Here’s how to build a strong defense strategy that not only shields your organization but also reinforces fairness and credibility. Most U.S. states, including California, operate under an at-will employment framework.

It means you can terminate an employee without cause, but not for illegal reasons such as discrimination, retaliation, or other public policy violations. Employees can still pursue wrongful termination claims under certain exceptions, including discrimination (such as age, gender, or religion), retaliation (such as whistle-blowing), or violations of public policy. Clearly understanding these exceptions is the first step in building a strong defense. "Document or it didn’t happen” isn’t just a saying; it’s often how juries perceive it. Keep thorough records of all performance issues, disciplinary actions, and communications. When terminating, provide written reasons and attach supporting documentation.

It not only strengthens your defense but also demonstrates fairness and transparency. Selective enforcement is a red flag. If only one employee is disciplined for a violation while others aren’t, you may open the door to claims of discrimination or unfair treatment. Ensure progressive discipline, and any termination is applied evenly across all employees in similar situations. Staffing firms today face growing exposure to wrongful termination lawsuits, evolving employment laws, and shared liability across client worksites. That reality calls for insurance for employment agencies that reflects how these businesses actually operate.

For insurance agents serving this sector, employment practices liability insurance (EPLI) is a core component of modern risk management. In this article, we’ll break down why EPLI matters, how it works, and what brokers should consider when recommending it. Co-employment is now common across the staffing industry. Agencies may recruit, pay, and manage benefits, while the client handles daily supervision. That division often leads to confusion when things go wrong, especially when it’s unclear who made the call to terminate someone’s assignment. For example, let’s say a temporary worker is let go after clashing with a client supervisor.

Explore Michigan's employment termination laws, employee rights, and legal remedies to ensure fair treatment and protection in the workplace. Understanding employment termination laws in Michigan is crucial for both employers and employees to navigate workplace rights and obligations. These laws define permissible grounds for termination, outline employee protections, and establish recourse options for wrongful dismissal claims. Grasping these legal frameworks ensures that parties involved are aware of their rights and responsibilities. In Michigan, employment is generally governed by the “at-will” doctrine, allowing employers to terminate employees for any reason or no reason, as long as it is not illegal. This principle, rooted in common law, has been upheld in court decisions like Toussaint v.

Blue Cross & Blue Shield of Michigan, which clarified that employment contracts could modify the at-will nature if specific terms are agreed upon. Despite this broad latitude, statutory exceptions protect employees from discriminatory or retaliatory dismissals. Federal and state laws, including the Michigan Elliott-Larsen Civil Rights Act, prohibit termination based on race, color, religion, sex, national origin, age, height, weight, or marital status. The Persons with Disabilities Civil Rights Act safeguards employees with disabilities from discrimination. Employers must also comply with the Whistleblowers’ Protection Act, which prevents retaliation against employees who report illegal activities. These statutes create a framework where certain grounds for termination are explicitly unlawful, providing a layer of protection for employees.

Michigan law does not mandate notice or severance pay due to its adherence to the at-will employment doctrine. Employers are not legally required to provide advance notice or severance pay unless stipulated in an employment contract or company policy. The lack of statutory requirements places greater importance on terms outlined in individual employment agreements or collective bargaining agreements. Call for a Consultation | (301) 441-2420 In our last blog post, we discussed situations in which an employee may have grounds to pursue a wrongful termination claim. In that post, we cited employment contracts, retaliation and discrimination as factors that could prove to be crucial in these situations.

We also noted that these cases can be extraordinarily complicated. For example, if you are on the employer side of the dispute, you may have a completely different view on the series of events that led up to a termination. To successfully prove your side of the issue, you can work with an attorney to dispute the legal claim against you and potentially have it dismissed before trial or be successful in court. Employers facing wrongful termination lawsuits can benefit from legal representation in a number of different ways. Trying to compile, organize and present documentation, witness statements and other pieces of evidence can be a time-consuming, complicated task that requires legal knowledge and experience. Without this, an employer can find it all but impossible to stay focused on a business because he or she is so consumed by the legal process.

2. How Employers Can Protect Themselves from Wrongful Termination Claims A well-drafted employee handbook outlining company policies, code of conduct, and disciplinary procedures can serve as a legal safeguard. The handbook should clearly state that employment is at-will, except where contractual agreements state otherwise. Employment lawsuits can pose significant challenges for employers, including reputational damage and potential legal liability. While many employment relationships are categorized as at-will, meaning an employer can generally terminate an employee for any reason, there are legal limitations.

Employers cannot fire employees for discriminatory reasons, as retaliation for exercising their rights, or for reporting workplace safety violations. If an employee can prove that their termination violated these protections, they may be entitled to financial compensation. Business owners should prepare in advance to minimize legal risk and work with an experienced commercial litigation lawyer. In wrongful termination lawsuits, the burden of proof initially rests with the employee. They must demonstrate, by a preponderance of the evidence, that their termination was unlawful. However, if they present sufficient evidence to support their claim, the burden shifts to the employer to provide a legitimate, non-discriminatory reason for the termination.

One key defense strategy is to challenge the evidence presented by the employee. It is rare for an employee to have direct proof of wrongful termination. Instead, they often rely on circumstantial evidence, such as inconsistencies in termination decisions or statements made by supervisors. Employers can counter these claims by demonstrating that the evidence does not establish wrongful intent. Employers can also defend against wrongful termination claims by providing clear, documented reasons for the termination. Poor job performance, policy violations, or misconduct are legitimate grounds for termination.

Even if an employer is not legally required to document performance issues, maintaining records of employee evaluations, disciplinary actions, and warnings can help substantiate the employer’s defense. If you or your business are being sued by an employee for wrongful termination, taking the right steps immediately can make a significant difference in the outcome. The first and most important step is to remain calm and avoid making any statements that can be used against you. Do not contact the former employee directly or attempt to discuss the case with them, as anything you say can potentially harm your defense. Next, gather all relevant documentation related to the employee’s termination. This documentation includes performance evaluations, disciplinary records, attendance reports, written warnings, emails, and any other communications that justify the termination.

Strong documentation is one of the best ways to show that the decision to terminate was lawful and based on legitimate business reasons rather than discrimination or retaliation. After collecting evidence, consult with a skilled business attorney who is experienced in employment law. Your lawyer will carefully review the details of the case and develop a strong defense strategy. They can respond to the lawsuit on your behalf, negotiate settlements if necessary, and represent you in court if the case goes to trial. A Los Angeles employer defense attorney will work to show that the termination was justified, that no laws were violated and that the employee’s claims lack merit. In addition, your lawyer can protect your business from future lawsuits by advising you on best practices for handling terminations and ensuring compliance with employment laws.

Protect Business From Wrongful Termination Claims Tish Law

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