Letting someone go isn’t something an employer takes lightly. However, for business owners, mishandling the process can expose their company to costly wrongful termination claims.
Even if the termination was justified, poor documentation, inconsistent policies or legally questionable actions can turn a routine employment decision into a legal dispute. Understanding how claims arise and how to reduce your risk is essential to protecting your business.
At-will employment
Pennsylvania is generally considered an “at-will” employment state, meaning employers can usually terminate employees at any time, for almost any lawful reason. Likewise, employees may also leave their jobs at any time.
However, “at-will” employment doesn’t give employers unlimited authority. They can still face wrongful termination claims if the dismissal violates state or federal law, an employment contract or public policy.
Grounds for wrongful termination suits
Many wrongful termination lawsuits arise from an employee’s allegations that they were fired for an unlawful reason rather than a legitimate business concern. Common reasons include accusations of discrimination based on the employee’s race, age, sex, disability, religion or other protected characteristics.
Retaliation claims are also common. An employee may say they were terminated after reporting harassment, raising safety concerns, requesting medical leave or participating in a workplace investigation.
Preventing and defending against these claims
One of the most effective ways to reduce risk is to establish clear workplace policies and enforce them consistently. Employee handbooks should outline expectations regarding attendance, performance and conduct. It should also address disciplinary procedures.
When there is documentation that employees were informed of and understand workplace expectations, employers are often in a stronger position to defend against claims. Documentation is crucial in the defense against wrongful termination claims. Too often, businesses terminate an employee after months of frustration but lack written evidence to support the decision. Performance evaluations, written warnings and attendance records can help demonstrate that the termination was based on legitimate reasons rather than unlawful motives.
Certain termination decisions have a greater legal risk than others. Terminating employees who recently filed complaints, were injured or belong to protected classes requires extra caution. Discussing the issue with a legal representative before termination can help identify potential issues and ensure the process is handled correctly.