When an employee believes they were wrongfully terminated, lawsuits are bound to happen. Having an employee file a lawsuit against your company can be nerve-wracking. However, there are many ways an organization can protect itself from this type of litigation.
Three ways to protect your company
Employee litigation is becoming more commonplace each year. The impact of these lawsuits on companies evident as well. In 2017, the Equal Employment Opportunity Commission (EEOC) stated that the average settlement, after an employee took legal action, was $460,000. To guard your business and help prevent costly mistakes from happening, follow these tips:
- Explain the termination thoroughly: No matter what the employment laws are in your state, clarifying exactly why an employee was let go is imperative to avoid prosecution. If you vaguely explain why you fired someone, they may end up taking legal action.
- Have evidence for a firing: If you fired a worker because of their poor work ethic, it is in your best interest to have evidence supporting your claim. Inaccurately explaining why you terminated someone can lead to a lawsuit.
- Abide by company procedures: To further protect yourself and the company be sure to abide by the business’s guidelines. Straying too far from the standard procedure can place you in legal trouble.
If you are worried about an employee taking legal action, you may want to start working with an employment law attorney. An experienced lawyer will understand your state’s unique employment laws. They can also further advise how your company should approach terminations in the future.