Wrongful Termination Lawsuit How To Defend Your Company

Bonisiwe Shabane

-Nov 2, 2025, 2:04 AM

wrongful termination lawsuit how to defend your company

Business owners are understandably concerned about the prospect of a wrongful termination lawsuit from a former employee. But there are times when letting an employee go is the best and only option. RKPT’s wrongful termination lawyers can help you minimize the likelihood that a former employee will file a wrongful termination lawsuit. And if a former employee does file a wrongful termination claim, we have the knowledge and experience to vigorously defend you and your business. If your business is concerned about the prospect of a wrongful termination claim, you should consult with our employment attorneys as soon as possible. Our lawyers can provide advice to help you avoid a wrongful termination lawsuit.

Preventing a wrongful termination claim starts early. You should lay the foundation for defending against a wrongful termination lawsuit before terminating an employee. Clear employment guidelines can eliminate many wrongful termination claims. Handling the dismissal professionally can reduce the former employee’s desire to take legal action. For these guidelines to be effective, you must closely follow the terms of your employment agreement and employee handbook. If your business is facing a wrongful termination lawsuit, you will need to show that there were legitimate, non-discriminatory reasons for the termination of employment.

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. 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 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. By taking these steps and working with a knowledgeable lawyer, you can strengthen your defense and protect your business’s reputation and financial stability. The Fair Employment and Housing Act (FEHA) is a California law that protects employees from discrimination, harassment, and retaliation in the workplace. If you run a business in California, FEHA applies to you if you have five or more employees (or just one employee in cases of harassment). One of the most important areas where FEHA affects businesses is wrongful termination. Oct 30, 2025 | Employment Law For Employers

Your company announces workforce cuts and suddenly, you find yourself facing legal penalties you never anticipated. What you planned as a strategic reduction in force had been tagged as a mass layoff, triggering compliance requirements that you didn’t prepare for. ... Oct 23, 2025 | Employment Law For Employees Sudden job loss can put workers in difficult positions. Most professionals have recurring monthly bills that they need regular income to pay.

Many people do not have enough in savings to cover all of their regular expenses, and finding a new job can take weeks or... Oct 10, 2025 | Trucking Accident Defense California, like 48 other states, follows an at-will employment model. The lay understanding of this leads many to believe that employees can be terminated at any time for any reason or no reason at all. Employers who buy into this simplistic understanding are placing themselves at risk of a wrongful termination claim. While employers in California do have considerable latitude in severing the employment relationship with employees, this discretion is not without limits.

Notably, employers may not unlawfully discriminate against employees when deciding to end their employment. This includes terminating employees based on their race, gender, nationality, disability, or sexual orientation, just to name a few. Employees who feel unlawfully terminated can bring a wrongful termination claim and seek damages. For their part, employers should retain a skilled employment defense attorney to assist in responding to such claims and avoiding wrongful termination allegations from arising at all. A wrongful termination claim brought by an employee against a former employer alleges that the former employer terminated the employee’s employment in violation of the law. Where professional advancement meets business impact

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Stay ahead with content that addresses today’s most pressing challenges and emerging trends. On Behalf of Pincus & Currier LLP | Dec 10, 2024 | Employment Law For Employers | Every business owner needs to be careful when terminating an employee’s contract. One wrong move could lead to an expensive lawsuit. However, implementing proper procedures can safeguard your business. Here’s how you can protect your business from wrongful termination claims.

Strong documentation is your best defense against legal claims. When managing employee issues, maintain clear records of employee performance issues, all disciplinary actions taken, violations of company policies, and discussions about work concerns. These detailed records become invaluable evidence if termination decisions are questioned later. A professional disciplinary system builds a foundation for legally sound terminations. This process typically begins with initial verbal warnings, progresses to written performance warnings, includes performance improvement plans when needed, and concludes with final written notices before termination. Using these steps consistently helps demonstrate fair treatment of all employees and protects against discrimination claims.

You must understand that certain employee actions are legally protected. Termination decisions cannot be based on discrimination complaints, workplace safety reports, approved medical leave, or wage and hour concerns. Being aware of these protections helps prevent costly retaliation claims and ensures compliance with employment laws. A dreaded wrongful termination claim has landed on your desk. A former employee alleges their dismissal was unjust, discriminatory, or retaliatory. Your heart sinks as you contemplate the potential financial burden, the negative publicity, and the disruption to your business operations.

It’s a scenario no employer wants to face, but it’s a reality for many. Wrongful termination claims are a serious matter in California, a state known for its strong employee protections. However, not all claims are valid, and even legitimate ones can be effectively managed with the right approach. Understanding your rights as an employer and taking proactive measures can significantly mitigate the risks associated with such lawsuits. At SKT Law, we specialize in employment law and have a proven track record of defending businesses against wrongful termination claims. We know each case is unique, and we create defense strategies to fit your circumstances.

Wrongful Termination Lawsuit How To Defend Your Company

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