A common belief among many employers is
that, because Arizona is an at-will employment state (i.e., in the
absence of a contract, either party can break the relationship without cause), they can fire an employee without
justification.
That is a risky position to take; in many cases, if
you cannot articulate a good reason for the termination,
you may face a wrongful termination lawsuit or
administrative claim.
Thus, before firing an employee, employers
would be wise to analyze whether a jury would
agree that the termination was justified. To limit potential exposure of employee damages stemming from
wrongful termination, you should first consider the following
factors:
-
How long has the employee been with your company or organization?
-
Is there an employment contract? If there is, what does it say?
-
Can you articulate the reasons for termination?
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Are the grounds for termination consistent with the provisions of
your employee manual or employment policies?
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Has the policy manual been changed recently?
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Do you have evidence to support your decision?
-
Have you documented the events or employee conduct that led to
your decision?
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Did you ask the employee for an explanation?
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Is the decision consistent with prior performance evaluations?
-
Are there circumstances in the employee’s life that make the
termination decision inappropriate?
-
How have you responded to similar conduct by other employees?
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Is your action regarding this employee consistent with actions
taken against employees in similar situations?
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Has the employee made allegations of company wrongdoing?
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Is the employee a member of a protected category?
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Does the employee have a serious health condition or a disability?
-
Is the employee properly classified as salaried (versus hourly
wage)?
-
Is the employee’s cooperation necessary to the defense of claims
in pending or threatened litigation by others?
-
Have you considered alternatives to termination (e.g.,
resignation, transfer, demotion, final warning, suspension)?
-
In general, would the termination be viewed as fair by a third
party who knew both sides of the issue?
A detailed analysis of these factors should assist in reducing
liability or in assessing the risk of a lawsuit or administrative
claim resulting from an employee termination. ■
These materials
are designed to provide general information prepared by professionals in regard
to the subject matter covered. It is provided with the understanding that the
author is not engaged in rendering legal, accounting, or other professional
service. Although prepared by professionals, these materials should not be
utilized as a substitute for professional service in specific situations. If
legal advice or other expert assistance is required, the service of a
professional should be sought.
