Employment lawsuits can be costly, time-consuming, and damaging to your company’s reputation. The good news? There are steps you can take right now to minimize your risk. Here are ten practical things you can do today to help keep your business out of the courtroom.
1. Train Your Supervisors
Your supervisors are on the front lines of your company’s daily operations, making decisions that can either protect or expose your business to liability. Ensure they are trained in employment laws, including discrimination, harassment, and wage and hour issues. A well-trained supervisor can spot problems early and handle situations correctly before they escalate into costly legal claims.
2. Know What to Document and How
Documentation can make or break your ability to defend against a claim. Train your managers to document employee performance issues, policy violations, and disciplinary actions properly. Ensure records are objective, factual, and timely. Poor documentation—or a lack of it—can weaken your position in a dispute.
3. Understand What It Means to Be an Employer in an At-Will State
Many employers assume “at-will” employment means they can fire an employee at any time for any reason. While this is generally true, there are still critical legal exceptions. For example, in Idaho, you cannot terminate employees for discriminatory reasons or in retaliation for legally protected activities. Ensure your team understands these nuances to avoid wrongful termination claims.
4. Have an Updated Handbook and Make Sure Your Supervisors Understand How to Enforce It
A well-written employee handbook sets clear expectations, outlines policies, and provides a first line of defense against legal claims. However, a handbook is only as effective as its enforcement. Often, supervisors have specific responsibilities within the handbook—whether it’s handling complaints, documenting performance issues, or enforcing workplace policies. If they don’t understand their role or fail to follow the guidelines, it can create significant liability for your company. Make sure your supervisors are trained on the policies, understand what is expected of them, and apply rules consistently. Inconsistent enforcement can lead to claims of favoritism, discrimination, or wrongful termination.
5. Have Updated Job Descriptions for Each Position in Your Company
Job descriptions are more than just hiring tools—they are crucial for setting expectations, defining essential job functions, and defending against claims of disability discrimination. If an employee requests an accommodation, you’ll need an accurate job description to determine whether the request is reasonable. Review and update job descriptions regularly to reflect actual duties and responsibilities.
6. Do Not Let Emotion Fuel Your Decisions
Employment decisions based on frustration, anger, or personal bias can backfire. If an employee is underperforming or causing issues, take a step back and assess the situation objectively. Follow your policies, document appropriately, and seek legal advice if needed. Acting on impulse can lead to wrongful termination or retaliation claims.
7. Use a Termination Checklist Prior to Committing an Adverse Action
There are certain risk factors that apply to every situation. Instead of memorizing them, keep the checklist handy to ensure you are avoiding high-risk situations before it’s too late.
8. Don’t Forget to Consider Severance Agreements with a Release of Claims
Severance agreements aren’t just about goodwill—they’re a strategic tool for reducing legal risk, especially in higher-risk terminations. If an employee termination has the potential to lead to litigation, offering severance in exchange for a signed release of claims can help protect your company from future lawsuits. These agreements provide employees with compensation while securing their agreement not to pursue legal action. However, they must be carefully drafted to comply with state and federal laws. Before offering severance, assess the risks involved and consider consulting with legal counsel to ensure the agreement is enforceable.
9. Do Not Shortcut Internal Investigations—Make Sure the People Conducting Them Know What to Include
A rushed or mishandled investigation can create serious legal risks. Those conducting investigations must be trained to gather evidence, interview witnesses, and document findings properly. In higher-risk cases, hiring a qualified third-party investigator may be the best option. While more expensive, it ensures neutrality and can help protect your company from claims of bias or improper handling.
10. Think Through Confidentiality Issues and Get Documentation in Place
Too many employers ignore keeping their confidential and proprietary information safe. However, anytime a high level leader leaves, it creates risk that the information could land in the hands of your competitors or could result in a situation that reduces your edge in the marketplace. Think threw policies, confidentiality agreements, systems and protocols.
Final Thought
Preventing lawsuits isn’t about luck—it’s about preparation. Taking these steps today helps protect your business from costly legal battles tomorrow. Want more insights on employment law risks? Contact us!
📞 Phone: (208) 901-3912
📧 Email: contact@idemploymentlawyers.com
🌐 Website: lawforleaders.com
Don’t forget to check out our book and weekly podcast for more expert guidance!