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Avoiding wrongful termination lawsuits important for small businesses


Several recent reports have analyzed wrongful termination lawsuits and discussed the importance of small businesses avoiding them.

Businesses that fire employees without justifiable causes can become involved in costly lawsuits, which can sink a smaller company easily if it is without reasonable liability insurance.

Nationwide, employees are all "at will," which means that companies can fire them for any reason they see fit, as long as it is legal. Among the most common wrongful terminations experienced by businesses are those involved discrimination, retaliation and violations of public policy.

According to the Equal Employment Opportunity Commission, in 2008 alone, 95,402 workplace discrimination complaints were filed. Companies that opt to let an employee go based upon their race, gender, age or disability can quickly be hit with a lawsuit. Avoiding discriminatory actions is essential for companies hoping to stay out of the courtroom, one report relays.

A Fox Business report recently relayed that, to fire an employee properly, a business should take a proper procedure or use an outplacement service, have an effective plan for the financial transition, and offer a severance package as well as a list of resources to help the terminated employee.  

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