Defending Against Wrongful Termination Claims in California: What Employers Should Document

With employment-related lawsuits on the rise, it’s important for employers to know how to defend themselves. Significantly, when it comes to employee termination, having the right documentation in place is vital to ensure a company and its bottom line are protected. Adequate documentation of an employee’s poor performance or misconduct can serve as key evidence if the employee brings a wrongful termination claim. Proper documentation can also help reduce an employer’s legal risk by showing that the terminated employee was treated the same as similarly situated employees.

Documentation Employers Need to Defend Against Employment-Related Claims

While most employment relationships are at-will in California, either an employer or employee can end the relationship at any time without notice. However, the reason for the termination must not be illegal or discriminatory. If an employee brings a lawsuit because they believe their firing was unlawful, an employer must be able to show that there were legitimate grounds for the termination.

Thorough documentation of an employee’s conduct is essential to defend against allegations of discrimination, retaliation, and wrongful termination. An employer should be prepared to present the following types of documentation to protect themselves from an employment-related claim:

• Email and correspondence — Emails and correspondence with the employee can establish a paper trail and document that they were made aware of issues concerning their performance or conduct.
• Meeting notes — Notes from meetings with the employee can demonstrate that the issues which gave rise to the termination were addressed before the employee was fired. The content of the meeting, what was discussed, and the warnings that were given should be specifically documented.
• Past performance reviews — Performance reviews can demonstrate that the employee’s failure to meet expectations was the reason for the termination.
• Performance Improvement Plans — A Performance Improvement Plan can show that the employee’s performance was addressed and they were given the opportunity to improve before their termination.
• Disciplinary records — Disciplinary records can help to establish that the termination was based on a pattern of problematic behavior or poor performance, rather than an unlawful reason.
• Attendance logs — If the employee’s termination was based on excessive absences or tardiness, an attendance log can show that the employee was fired for a legitimate reason.
• Witness statements — Witness statements can provide a third-party account of the events that gave rise to the termination and help to refute an employee’s claim of discrimination or retaliation.
• Documentation of verbal warnings — Any verbal warnings issued to the employee should be documented in writing to create a record of the conversation.

It’s important to ensure all documentation is thorough and accurate. When documenting poor performance or misconduct, an employer should focus on the facts of how the employee failed to meet expectations. The specific dates and times of each incident should be documented — as well as the employer’s response.

Documenting Employee Termination

In addition to documenting the issues leading up to the employee termination, an employer should be sure to document the termination itself. Keep a written record of the conversation with the employee and have a witness present to ensure an unbiased account. Notably, under California law, an employee must be provided with certain documents upon termination — including a “Notice to Employee as to Change in Relationship,” a “For Your Benefit Pamphlet,” and their final paycheck.

Using Separation Agreements to Reduce the Risk of Employment Litigation

If an employee signed a separation agreement, this can be used to show that they waived their right to sue in exchange for severance pay. In most cases, a court in California will enforce a separation agreement as long as the terms are fair and the document was signed voluntarily. These types of agreements can offer strong legal protections to an employer and shield them from potential litigation arising from employee termination claims.

How an Employee Handbook Can Help Employers Protect Their Companies

A well-drafted employee handbook establishes workplace policies and procedures, which can be crucial when defending against an employee termination claim. Notably, every employee should receive a copy of the company’s handbook when they begin their employment. They should also sign an acknowledgement to confirm that they received, read, and understood it. This acknowledgement can serve as evidence that an employee was informed of their rights, responsibilities, and the conduct expected of them in the workplace.

An employee handbook is much more than a resource to help ensure the workplace runs efficiently. It can show that there was a consistent process in place to address employee performance issues, which can be used to defend against any claims of unfair treatment. It can also outline the steps for disciplinary action and create a framework for dispute resolution. Ultimately, a strong employee handbook can help demonstrate that an employer adhered to their legally compliant policies — and disprove allegations of disparate treatment.

Contact an Experienced California Employment Attorney

It’s essential for employers to fully understand what documentation is necessary to protect their interests in the event of employee termination. The employment attorneys at White & Bright, LLP work closely with employers for a wide range of employment matters, including those involving allegations of wrongful termination. We welcome you to contact us online or call us at (760) 747-3200 to learn more about our legal services.