Wrongful Termination Shielding Your Business Skt Law

Bonisiwe Shabane

-Nov 1, 2025, 10:49 PM

wrongful termination shielding your business skt law

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. 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 happens when your employer fires you for an illegal reason. Learn what qualifies as wrongful discharge and the actions you can take. Your termination could be wrongful if your employer fired you:

Termination could also be considered wrongful if your employer fired you but did not follow their termination policies. If you were fired because of discrimination, file a report with the Equal Employment Opportunity Commission (EEOC). If you were fired in retaliation for reporting unsafe or illegal work practices or products, you have whistleblower protections. Report your termination to the Occupational Safety and Health Administration (OSHA). Find instructions for filing a whistleblower complaint. As an entrepreneur or business owner, you understand the plethora of threats that can jeopardize your business's financial stability and reputation in the marketplace.

Among these risks, employment litigation looms large, capable of inflicting significant damage to your business. To safeguard your business from such perils, preemptive measures are essential. Let’s explore how to minimize exposure to wrongful termination lawsuits so you can have peace of mind while running and growing your business. Prevention has always been the preferred course of action, and it holds true when it comes to potential lawsuits. Investing in a comprehensive employee handbook or policy manual can be a cost-effective solution to ward off expensive legal battles. However, the stakes go beyond mere financial implications.

Consider the potential reputational damage that can occur when the public becomes aware of lawsuits against your company. A negative perception can strain relationships with customers, suppliers, and even employees and potential employees, resulting in a decline in morale and a toxic work environment. To minimize the risk of wrongful termination lawsuits, proactive steps can be taken. First, you must establish clear policies that outline employee conduct, rules of the business, performance expectations, and termination procedures. These policies should be well-documented, distributed and readily accessible to every employee. Additionally, maintaining meticulous records of each employee's performance and adherence to key performance indicators provides a solid foundation for demonstrating lawful and legitimate terminations.

In larger companies, disciplinary actions are typically conducted by managers rather than the business owner. It becomes crucial to ensure that managers are well-versed in handling performance issues and that their actions align with state and federal laws. Providing comprehensive training on relevant regulations can empower managers to make informed decisions that mitigate legal risks. Consulting with experienced employment lawyers can further fortify your business against wrongful termination claims. These legal professionals can offer guidance on developing solid policies, procedures, and documentation systems. In addition, they can advise on offering severance packages, wherein terminated employees accept compensation in exchange for releasing any liability and refraining from filing lawsuits.

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. 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? 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.

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.

Wrongful Termination Shielding Your Business Skt Law

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