Protect Your Business From Wrongful Discharge
While running a business can be extremely rewarding, it can also come with many potential risks. One that many employers find themselves facing is a wrongful discharge lawsuit, in which a terminated employee sues under the allegation that their employment ended unjustly. And sadly, if a judge rules in their favor, it could end up costing your company tens of thousands of dollars. However, you can take steps to protect your business from such claims.
Whether you employ thousands of strangers or a handful of family members and friends, it is vital that you take the necessary steps to protect your business. Though there is never a guarantee that someone will not file a claim, the following steps can provide a huge barrier to the terminated employee’s success.
Know the Laws
Utah is an employment-at-will state. In short, this means that either an employee or an employer can terminate employment at any time unless there is a contract or other agreement involved. While most people understand employment-at-will on the surface, many overlook one key detail: termination of employment cannot occur when the reason is contrary to the law.
Some of the most well-known employment laws involve discrimination and retaliation against whistleblowers, but they do not end there. It is essential that you familiarize yourself with both federal and Utah state laws before attempting to terminate any employee. Additionally, you must stay up-to-date, as laws often change.
Set Clear Employment Policies, Procedures, and Agreements
Both employers and employees should be clear about what is expected, the disciplinary process, and what constitutes just termination. These should be documented in employment agreements that every employee should sign.
If updates are made to these policies and procedures, a new agreement should be signed. This will show the jury that the employee understood what would lead to termination but chose to continue that action.
For example, if your policy clearly states that three unexcused absences lead to termination, an employee who has been absent three times without an excuse will have no legitimate case. For extra protection, though, you should also clearly define what constitutes excused and unexcused. The law specifies some events, including military and jury duty. Aside from those protected by law, you will need to provide any additional events.
Keep Thorough Documentation
One of the best defenses against wrongful discharge cases is proving that there is nothing wrong with termination. The best way to do so is to keep documentation throughout each employee’s time with the company. By keeping a record of performance, any incidents that occur, any disciplinary events and corrective measures that have been taken, and any additional information of note. This will ensure that you can show the termination is just.
Seek Legal Counsel
Protecting your business from wrongful discharge requires a great deal of knowledge and wisdom in legal matters, which is why you should consider working with an employment attorney in Utah. This step helps ensure you have all your legal ducks in a row, greatly reducing the chance of a successful wrongful discharge lawsuit.
Some of the various ways an employment attorney can help include:
- Keeping you informed of current employment law, including updates to public policy
- Helping you develop clear employment agreements, termination policies, employee handbooks, and more
- Establishing processes for completing performance reviews and documenting performance as well as disciplinary actions
- Providing essential guidance for steps to take before, during, and after termination
At Howard, Lewis & Petersen, P.C., we know you work hard every day to keep your business running. We work equally as hard to help you protect it. As business lawyers in Utah, we can help ensure that you take the best steps in each situation and set the framework for future employment issues. Call us today at (801) 373-6345 to learn more and get started.
