Have an underperforming employee (6 months in). At-will state. Want to let them go but nervous about wrongful termination claims. They're in a protected class. What's the safest process?
Have an underperforming employee (6 months in). At-will state. Want to let them go but nervous about wrongful termination claims. They're in a protected class. What's the safest process?
Everyone is in some protected class (race, sex, age, etc. — even white males over 40). The question is whether termination is discriminatory or retaliatory. If it's genuinely performance-based, you're fine.
Best practices:
1. Document performance issues in writing BEFORE terminating (emails, performance reviews, PIPs)
2. Be consistent — would you fire anyone else for the same behavior?
3. Don't mention protected characteristics in any communications
4. Have a neutral third party in the termination meeting
5. Keep the meeting short — "We're ending the employment relationship effective today"
6. Provide final paycheck per state law (California = same day)
Offer severance in exchange for a release of claims. Even 2 weeks severance gets you a signed waiver. Use a lawyer to draft the separation agreement — the release language matters.
For employees 40+, you must give them 21 days to consider and 7 days to revoke (OWBPA requirements).
Practical reality: most employees don't sue. The ones who do usually had red flags (threatened litigation, filed internal complaints, etc.). If this is a clean performance issue with documentation, you're probably fine.
That said, if you're nervous, spend $500 for an employment lawyer to review your documentation and bless the termination. Cheap insurance.
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