Legal Considerations for the Entrepreneur-Boss When Firing Someone

This article provides some guidance for a small business owner who is considering firing an employee. Firing an employee is never pleasant, and, for some small business owners, owning their own business could be the first time they have had to fire someone. Thus, these entrepreneur-bosses may not have an insight into the various legal risks that can come with improperly firing an employee. For example, the article points out that there are various anti-discrimination laws that could be violated during a firing. Additionally, the article notes that proper documentation can help the company in case of a post-firing challenge.

All in all, this article can help small business owners be ready for a firing, when the time comes. It can also help us be mindful of the wide variety of advice that an entrepreneur may need when seeking our legal counsel.

3 thoughts on “Legal Considerations for the Entrepreneur-Boss When Firing Someone

  1. The points made in this article are pretty much dead on for generalizable HR policy for terminating staff. Where things get really tricky is knowing if/how you can restrict a terminated employee from joining a competitor (did the involuntary termination void the non-compete?), whether the terminated employee might try to take their clients with them, or if they might start poaching your other staff once they join a new company. These are definitely ancillary issues that make it crucial for employers (small and large alike) to consult an attorney early to put legal protections into place for managing employees out for performance and line drawing for behavioral issues.

  2. Excellent article. Even with the proliferation of right-to-work laws in states, consulting with a lawyer over ancillary issues (as Riley pointed out) is still a best practice. Non-competes, discrimination suits, etc. can all still be issues, even under a lenient right-to-work regime.