University of Kwazulu-Natal

Protecting Your Business From Wrongful Termination Lawsuits Best

Bonisiwe Shabane
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protecting your business from wrongful termination lawsuits best

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: Wrongful termination lawsuits are a serious concern for businesses, as they can damage a company’s reputation and result in significant financial losses.

To minimize the risk of such claims, employers should strive to draft employment contracts carefully and follow best practices that protect their legal interests while maintaining fairness for employees. Wrongful termination occurs when an employee is fired in violation of the law or their employment agreement. This could include discrimination, retaliation, breach of contract or firing someone in violation of public policy. Employers can minimize risks by ensuring employment contracts are clear, legally compliant and aligned with their business policies. A well-drafted employment contract is your first line of defense against wrongful termination claims. Employment contracts should ideally contain:

In most states, employment is presumed to be “at-will,” meaning either the employer or the employee can terminate the relationship at any time, for any lawful reason, or no reason at all. Explicitly including an at-will employment clause in the contract reinforces this understanding and minimizes confusion. However, at-will clauses must be carefully worded. Avoid language that implies job security unless it’s intentional, as that could create a basis for breach of contract claims. Where professional advancement meets business impact Get the proven strategies that protect your organization and advance your career.

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As a business owner, it is crucial to understand the legal implications that come with terminating employees. Wrongful termination, in particular, can be troublesome. Here are some ways you can be proactive to protect your business from wrongful termination lawsuits. The best way to prevent wrongful termination lawsuits is to ensure that your business is complying with labor laws. This means understanding federal and state employment laws, including anti-discrimination laws, wage and hour laws, and labor union regulations. Review and update your employment policies and procedures regularly, and train your HR staff and managers to implement them consistently.

Arbitrary termination refers to firing an employee for no justifiable reason. To protect your business from wrongful termination lawsuits, you must have a legitimate reason for letting go of an employee, even if you do not share the full reason with the employee. This could be poor performance, violation of company policies, misconduct, or any other valid reason. Ensure that your business has proper documentation of an employee’s poor performance or policy violations so you have evidence that can be used to defend your decision to terminate the employee. When termination is necessary, handle it with care and be prepared. Conduct the termination meeting in private and have a witness present to document the conversation.

Be clear and concise in your communication, and avoid making personal attacks or comments that could be used against you. Provide the terminated employee with written notice of the termination, their final paycheck, and their entitled benefits. Consider offering outplacement services or support, such as career counseling or resume building, to help the employee transition out of the organization. Having a clear set of policies in place is essential to avoid wrongful termination lawsuits. Start by establishing a clear code of conduct that employees must adhere to. This can include rules and regulations about acceptable behavior and performance standards.

By providing your employees with well-communicated rules and clearly defined job responsibilities, it will be easier to hold them accountable to those standards. That way, if you eventually have to take action against an employee, you will have a solid foundation to support your case. Let’s talk about one of the toughest parts of running a business: terminating an employee. It’s never easy, and it’s almost always fraught with legal risk. A single mistake can trigger a costly and time-consuming wrongful termination lawsuit. At SKT Law, we see the fallout from these situations regularly, and we’re passionate about helping businesses avoid them.

This blog is designed to be a practical guide, drawing on our experience, to help you navigate the often-complex world of employee terminations. It’s a legal term, and it’s important to understand it. Wrongful termination, or wrongful discharge, is a claim an employee makes when they believe their firing was illegal. This could mean it violated federal or state laws, or that it broke the terms of an employment agreement. As Eliot Krieger, Co-Founder and Managing Partner of SKT Law, states, “Ignorance of the law is no defense in a wrongful termination case. Business owners have a responsibility to understand their obligations under both federal and state employment laws.”

Many business owners operate under the assumption that “at-will” employment gives them free rein to fire employees. While at-will employment does provide flexibility, it’s crucial to understand that it’s not a license to ignore employee rights. There are numerous exceptions and protected categories that create a legal landscape you need to navigate carefully. The Big Risks: Discrimination and Retaliation Two of the biggest legal pitfalls are discrimination and retaliation. Let’s break those down.

In our bustling economy, businesses serve as the backbone. However, a lurking menace potentially threatening their stability and prosperity is wrongful termination lawsuits. These lawsuits pose significant financial and reputational risks, and the pressing need for businesses to shield themselves is more prominent than ever. A proficient business attorney in Pennsylvania from Braverman Kaskey Garber can offer invaluable assistance in this regard. In essence, a wrongful termination, also known as wrongful dismissal or discharge, happens when an employer terminates an employee’s contract of employment in violation of legal rights, contractual terms, or statutory protections. Given the broad umbrella of employment laws, different situations can lead to claims of wrongful termination, which include but are not limited to:

Each of these situations can be complex and requires careful legal analysis to determine whether a wrongful termination has indeed occurred. Employers should thus be vigilant in adhering to laws and regulations, treating employees fairly, and taking legal advice when necessary to avoid such claims. There are several proactive measures that businesses can adopt. Wrongful termination lawsuits are a stark reality in today’s business landscape, underscoring the necessity of legal protection. Braverman Kaskey Garber, a trusted name in business law, provides legal advice and protection, offering an invaluable safety net for businesses. It’s time to prioritize your business’s protection.

Why wait for a lawsuit to jeopardize your operations when you can take steps to guard against it? Posted by Gregory RobinsonAug 24, 20220 Comments While you may think of your team as family and believe that they would never sue you, lawsuits filed by employees are actually one of the most common causes of litigation for small businesses. In fact, nearly one in every five small businesses will get sued by an employee at some point. Of all types of lawsuits an employee can file against you, wrongful termination is among the most common. In basic terms, wrongful termination is when an individual is fired for an unlawful reason.

This includes terminations that violate anti-discrimination and other employee-protection laws at both the state and federal level, as well as terminations that violate employment agreements. Wrongful termination lawsuits can be a huge liability, and they've been on the increase in recent years, especially with so many businesses laying off workers due to the pandemic. Furthermore, these lawsuits can be extremely costly, since regardless of whether you win the case or not, you are still on the hook for attorney's fees. Given these risks, you should do everything you can to protect your business against wrongful termination claims, and you should consider implementing a number of proactive measures to safeguard your business. The following best practices are a few of the most effective ways to protect your company from wrongful termination claims. These measures can not only reduce the chances of a wrongful termination lawsuit being filed against you, but also increase your chances of winning a lawsuit should your business ever get hit with one.

If you don't know what constitutes wrongful termination, you can't take steps to prevent it. Discrimination is one of the most frequent bases for wrongful termination lawsuits. Both federal and state law protects workers from discrimination of all kinds, including on the basis of race, sex, religion, national origin, age, disability, and pregnancy. Under these laws, you can be sued for wrongful termination if an employee claims their firing was related to one of these protected classes. For example, if you terminate a female employee, and she claims it was because she became pregnant, she could sue you. In addition to anti-discrimination laws, there are a number of federal, state, and local laws protecting employees from terminations based on a variety of other different causes.

Some of these include disparate treatment, breach of contract, retaliation, and inconsistent application of company policies. Many business owners do not have the right business insurance coverage, and if that's you, take the time to conduct an insurance review this week. Or contact us to support you with it. Business insurance, including employment practices insurance, will not only cover a judgment that may be incurred against your business, but it should also provide you with a lawyer paid for by the insurance company... Knowledge of the law does little good if you don't put it into practice. Creating clearly defined policies detailing your procedures for hiring, discipline, termination, and dispute resolution are essential.

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Learn From Practicing Attorneys And Experienced Professionals Who Handle These

Learn from practicing attorneys and experienced professionals who handle these challenges every day, not corporate trainers reading from textbooks. Your spot in the program is almost confirmed. See below for next steps to finalize your enrollment. Three factors separate transformative professional development from forgettable seminars. Here's what actually drives lasting impact. Stay ahead with co...