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Avoiding Wrongful Termination Lawsuits

It’s every employer’s worst nightmare: to fire an employee. Whether it’s performance based or the business has run into some financial obstacles, there are plenty of reasons firing someone may be the most logical decision. However, in such a litigious society, the threat of being sued for wrongful termination is ever present. Therefore, business owners need to heed the following recommendations for minimizing risk and protecting themselves financially with the best Coin-Op Advantage Insurance Program.

Promote open communication.

Many lawsuits stem from a misunderstanding on the employee’s behalf. Be up front about the reasons they are being terminated. The more explanation is provided, the less angry and confused the employee will be. Or, if the employee’s position is being cut due to poor business conditions, ensure they know they are not being fired due to their performance. Minimize suspicion immediately to reduce the chances of ensuing legal battles.

Write it down.

Document any incidents leading up to the termination and write the reason down and provide the employee with a copy. “At the very least, you should put the reason for the termination in writing. The employee is likely to be emotional and upset and may not hear what you said in the termination interview. If the terminated employee goes to a lawyer, the lawyer will hear the story in the employee’s words, and will decide whether to take the case based on the employee’s description. In that case, the attorney may not hear your side of the story until after a lawsuit has been filed,” explained LA attorney Beth Schroeder to American Coin-Op.

Conduct employee evaluations.

An employee should know where they stand in terms of performance or any issues that arise. Go over their performance with them on a regular basis and have them sign the document. This way, they know how they are meeting expectations and they will understand disciplinary actions that are necessary if they fail to meet them. Be consistent when evaluating each employee and address issues immediately to reduce any resentment from the employee.

While delaying a termination may be a temporary fix, keep in mind that it doesn’t benefit anyone in doing so. Once the proper documentation has been completed and the firing is justified, prolonging it will only make a bad situation worse.

At Irving Weber Associates, we have a unique understanding of the Laundromat business. Our specialty programs offer protection to financially secure your business in the best way possible to ensure your success. For more information, contact our experts today at (855) 764-7406.