How to Legally Fire Employees

My biggest, off-handed comment regarding employee termination is that employers get stupid when they fire people. I guess the biggest reason is that employers believe they're "immune" from employee lawsuits because they fired someone "with cause."

The problem most employers have is that their "just cause" usually isn't anything more than a pretext. What happens in most cases is that the employer believes Oklahoma's at-will employment laws protect them from allegations of improper termination. The truth is, they're minimum standards that protect employers, but also create vulnerabilities.

I counsel small businesses to do these things to protect themselves:

  1. Have a valid reason for terminating the employee. There are exceptions to the at-will employment laws that can cause future problems. You might want to check out this post on terminating employees. There are some gigantic "no-nos" that will get your business in trouble.
  2. Document. Document. Document. Never (but you won't listen) fire someone without immediately documenting the reasons for termination. In most cases, especially termination, a paper trail is your best friend. If you're constantly warning an employee for being tired, document the warnings in the employee's file. Keep accurate and timely records about the terminations and the employee's behavior.
  3. Keep quiet. Confidentiality is important. Do not discuss the reasons for termination with anyone, especially by some mass email or social networking post. Those who need to know, should know. Otherwise, keep your mouth shut.
  4. Plan ahead. Discuss the legal ramifications of the termination with an attorney. The attorney can counsel you on  what you can do to minimize any legal fall-out. Your options could include delaying the termination, offering severance payments, and reviewing employment contracts or company policies.

You can't always guarantee that following all steps will ensure you'll successfully avoid a lawsuit. However, you can guarantee that you'll have more ammunition to help defend an accusation or allegation of wrongful termination.

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