How Can I Fire an Employee Without Running the Risk of Being Sued?

If you're not happy with an employee's performance and want to fire him or her, here are some steps you can follow to avoid being sued.

First of all, make sure all your employees have signed a document that indicates they are "at will employees," meaning either party can terminate

Second, the guiding principle for firing an employee is to ensure you have a reasonable and legitimate business reason for terminating him or her — one that you have thought about and adequately communicated and documented.

You run a greater risk in firing an employee who: (1) has made prior complaints about sexual harassment; (2) has made prior complaints about illegal conduct by the company; (3) is 40 and over; (4) is a member of a protected group, and thus protected by various laws preventing discrimination based on race, sex, disability, religion, or national origin; (5) has appraisals all indicating adequate or even commendable work performance; and (6) has had inconsistent promises made to him or her.

Consider conferring with an experienced employment or labor lawyer before firing an employee.