Wrongful Termination Lawsuits 8 Steps For Prevention Part 1

Bonisiwe Shabane

-Oct 30, 2025, 1:13 PM

wrongful termination lawsuits 8 steps for prevention part 1

A wrongful termination claim can be devastating to an employer. Per a 2017 Thomson Reuters study, the average award for wrongful termination lawsuits was $797,000. Even if an organization can settle out of court, wrongful termination settlements are still very costly. Notably, a wrongful termination case has other non-monetary costs. Wrongful termination lawsuits and claims usually severely impact employee engagement and the work environment. They also damage an organization’s employer brand, making it harder to attract and hire top talent.

To prevent the headaches and costs of wrongful termination suits and punitive damages, MP’s HR experts share a two-part series outlining key steps to preventing wrongful termination lawsuits. Employers should work with an HR expert, like the ones at MP, to learn more about the labor laws surrounding how a company may or may not fire an employee. These laws will vary from state to state. Hence, employers with offices in various states, or employees who work remotely in multiple states, need to understand all relevant labor laws to ensure full compliance. Sometimes employees and former employees may file a lawsuit no matter how much organizations prepare. Employers will reduce the likelihood of a lawsuit or devastating compensatory damages if they’ve already procured liability insurance.

Similar to the step above, preparation is critical for prevention. An employment lawyer could help review discipline and termination policies to ensure compliance. Connecting with an employment law firm also reduces the impact of wrongful termination lawsuits (including steep compensatory damages) when they do occur. It’s critical to consult with a labor attorney before terminating anyone, no matter how unsatisfactory their performance, infringement on their employment contract, sexual harassment violation, etc. When consulting with an employment attorney, share any documents and evidence for possible termination. These items may include:

Writing a comprehensive disciplinary policy is vital to preventing wrongful termination lawsuits. Employers should work with HR experts to develop a disciplinary policy that complies with all relevant state and federal laws. It must also meet the Equal Employment Opportunity Commission’s guidelines. Organizations should add the policy to their employee handbook and consider using talent management software, such as MP’s, to disseminate the policy (and handbook) and retrieve signed acknowledgment of receipt. The policy should include these elements: Losing a job is hard enough, but losing it in a way that feels unfair or unlawful can leave you even more frustrated and searching for answers.

Perhaps you were suddenly let go after raising a concern at work, or maybe the reason given just doesn’t add up. Wrongful termination isn’t always easy to spot, but if you suspect your employer crossed the line, it’s only natural to want to figure out what really happened. The challenge is proving it. Employers rarely admit they fired someone for the wrong reasons, so the responsibility often falls on you to show evidence and connect the dots. This is what this blog is for. Below are eight key steps to help you prove wrongful termination and protect your rights.

Employment laws vary widely by state, which means the circumstances that qualify as wrongful termination in one place might not apply in another. Most states follow “at-will employment,” where an employer can terminate workers for almost any reason, as long as it’s not discriminatory or retaliatory. However, some states have exceptions that protect employees more strongly. For example, Montana stands out because it doesn’t fully follow at-will employment rules. Workers there often have more protection against being fired without just cause. If you’re dealing with a situation in that state, it’s worth learning more about Employment Law and Wrongful Discharge in Montana since those protections may help you prove your case.

Knowing the legal standards in your state helps you identify whether your termination was lawful or not. 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. Employment at-will is the standard form of employment in most of the USA (except for Montana), meaning employers can fire or demote employees at any time. However, there are federal and local state laws that prohibit adverse employment action under specific circumstances.

If you’ve recently been fired and have started thinking about how to prove your wrongful termination claim, here is an outline of how many employees who have been wrongfully discharged have uncovered their case. Employers are usually careful, and wrongful termination is usually not evident. Proving wrongful termination is not easy, but not impossible. Here is how. Your employment status need to be clearly documented to prove your claim, so you will need to gather all of your employment documents: The law acknowledges the use of oral contracts.

To prove them, you need some sort of written memo of the conversation. If you can’t present a memo of an oral contract, proving it will be hard, as you would expect. All parties remember oral contracts differently. Losing your job can be devastating. But what happens when you believe your termination was illegal? Many employees don’t realize they have legal rights when fired unfairly.

Understanding how to sue for wrongful termination could be the difference between accepting an unjust dismissal and getting the compensation you deserve. Not every firing is wrongful termination. But if you were dismissed due to discrimination, retaliation, or contract violations, you may have grounds for legal action. Learn the essential steps and considerations for pursuing a wrongful termination lawsuit, from establishing grounds to exploring legal remedies. Suing for wrongful termination can be complex, but understanding the necessary steps is crucial for anyone who believes they have been unjustly dismissed. Wrongful termination occurs when an employee is fired in violation of legal rights or contractual agreements, requiring careful navigation through legal intricacies.

This guide outlines the essential steps involved in filing such a lawsuit, offering insights into what needs to be established and considered before proceeding. The first step in pursuing a wrongful termination claim is establishing an employment relationship. This requires showing that a formal or implied contract existed between the employee and employer. Employment contracts can be written, oral, or implied through company policies. For instance, an employee handbook outlining disciplinary procedures may create an implied contract if it suggests termination will only occur for specific reasons. The case of Guz v.

Bechtel National, Inc. (2000) demonstrates how courts can recognize implied contracts based on company policies. The nature of the employment relationship determines the legal protections available. Most employees in the United States are “at-will,” meaning they can be terminated for any reason that is not illegal. Exceptions include employment contracts specifying conditions for termination or statutory protections, such as the Family and Medical Leave Act (FMLA), which safeguards employees taking medical leave. Firing an employee for exercising such rights can constitute wrongful termination.

Unfair termination claims can lead to significant financial and reputational risks for employers. Without proper legal advice, businesses may find themselves facing wrongful dismissal lawsuits, human rights complaints, or employment standards violations. Working with an employment lawyer can help employers understand their obligations, reduce risk, and take proactive steps to prevent costly disputes. This article outlines how Ontario employers can protect their organizations from wrongful dismissal claims and stay compliant with workplace laws. In Ontario, employers must comply with employment laws when terminating employees. A termination may lead to legal claims if:

In addition to ESA minimums, employees may be entitled to common law notice, which is typically more generous. Failing to meet these obligations can result in costly legal proceedings. Employment lawyers assist employers by reviewing contracts, policies, and terminations to ensure they are legally compliant and defensible. Here’s how they can help:

Wrongful Termination Lawsuits 8 Steps For Prevention Part 1

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