Employer Guidelines to Terminate an Employee
In the United States, the relationship between the employer and the employee is considered "at will" in most cases, meaning the employer can fire the employee at any time for any reason. According to the U.S. Bureau of Labor Statistics, exceptions exist in some states that negate the "at will" law. In all states, knowing the laws and following proper termination procedure will help prevent the employer from being found guilty for wrongful termination.
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Public-Policy Exception
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Forty-two of the 50 states recognize the public-policy exception. This exception prevents the employer from terminating the employment of an employee for a reason that is against an established policy of the state. For example, as of 2008, except in Alabama, Florida, Georgia, Louisiana, Maine, Maryland, New York and Rhode Island, you cannot fire an employee for refusing to break a law for the employer. Most states consider a public policy to be one that is written in the state constitution, law or one that is an administrative rule.
Implied-Contract Exception
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Forty-one of 50 states recognize the implied-contract exception. As of 2008, in all states except Delaware, Florida, Georgia, Indiana, Louisiana, Missouri, North Carolina, Rhode Island and Tennessee, you cannot fire an employee if there is an implied -- written or oral -- contract between the employer and employee. Something as simple as a human resource manager saying that the employee has a job as long as his performance reviews go well can be interpreted as a contract of employment.
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Covenant of Good Faith Exception
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As of 2008, only 20 states recognized this exception. In Alabama, Alaska, Arizona, Arkansas, California, Connecticut, Delaware, Idaho, Illinois, Indiana, Louisiana, Massachusetts, Nevada, New Hampshire, New Jersey, Oklahoma, Pennsylvania, South Carolina, Vermont and Wyoming you cannot fire an employee without applying a "just cause" standard to the termination. Typically, this exception comes into play when an employer is attempting to terminate an employee in an effort to avoid paying retirement benefits.
Reason and Documentation
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Even in states with no exemptions, having a valid reason to terminate an employee is essential. By federal law, the reason you fire an employee cannot be because of the individual's race, age, physical disability, sexual orientation, religion or because of pregnancy or the employee turning the employer in for breaking a law. When you decide to terminate an employee, document any incidents that led to the decision and any conversations that you have with the employee to notify him of the problem and have him sign the document. Include the violation, employee's name and identifying information and dates on the documentation.
Termination
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Ask a witness such as the employee's supervisor to attend the meeting when you fire the employee. Choose a time and place for the meeting that will be unobtrusive to the rest of the work staff and protect the employee's dignity. State the reason for the termination and, if possible, get the employee's signature on the meeting documentation. If necessary, have the employee escorted off the premises.
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