When an employee is terminated, one of the riskiest factors that can affect business reputation and resources is a wrongful termination claim. In New York where most employees are at-will, businesses have various legal strategies available to build a strong case and protect themselves. It is crucial if you are preparing to terminate your employee, that you have proper procedures and documentation present. Understanding the constituents of wrongful termination will help your business prevent and defend against allegations levied against your business.
What Qualifies as Wrongful Termination in New York?
New York is as at-will employment state and, unless an employment agreement is executed, anyone can be terminated at any time if the termination does not otherwise violate the law. However, this does not inhibit employees from leveraging wrongful termination claims against their previous employer. It is illegal to terminate an employee for discriminatory reasons; including race, gender, disability, age, religion, and additional protected classes specific to New York. Additionally, it is illegal to terminate an employee in retaliation for filing a complaint, reporting illegal conduct, or engaging in whistleblower activity. For employees with an employment agreement, any breach of contract where the termination is against any clause within the contract may also fall under the basis for wrongful termination. Notably, not every termination is wrongful. Employers may legally end employment for reasons such as poor performance, misconduct, or downsizing provided they can demonstrate legitimate grounds and comply with local, state and federal laws.
Key Legal Defenses Employers Can Use in New York Wrongful Termination Cases
There are key legal defenses your business can use in New York to prevent a wrongful termination case against your company. Termination should be based on a legitimate, non-discriminatory basis; demonstrating that the decision was based on documented business needs rather than discriminatory motives is a powerful defense. Common examples include continuous lack-luster performance, disciplinary records, or company policy violations. Another consideration that must be made before terminating an employee is the type of agreement the employee signed to be hired. In New York, most employees receive an offer letter that includes an at-will employment clause. This provision gives employers broad flexibility to terminate employment. Alternatively, if the termination was carried out according to the terms of an employment contract or handbook, employers may assert that no breach occurred. This defense is especially relevant in cases involving senior executives who may have employment contract with their employer.
In addition, federal wrongful termination lawsuits may be dismissed if the employee did not first file a complaint with the Equal Employment Opportunity Commission (EEOC) or the New York State Division of Human Rights. Employers can raise this as a threshold defense to challenge the claim. To compliment this, employers can also demonstrate that they acted in full compliance with federal, state and local laws, such as Title VII, the ADA, or New York’s labor protections. Showing strict adherence to these statutes can weaken an employee’s allegations.
Why Documentation and Policies Are Critical in a Legal Defense
If your business is being accused of wrongful termination from a previous employee, it is critical to have documentation disproving the allegations. Clear documentation of performance reviews, disciplinary warnings, and internal communications demonstrating sufficient reasoning for termination will be your biggest safeguard against a costly lawsuit. What is equally important are formal, internal policies that demonstrate your business takes compliance issues seriously. With this, managers and leaders must apply these policies to all employees, to prevent any action taken against a single employee to be seen as discriminatory. In short, proactive recordkeeping and policy enforcement create a strong foundation for any legal defense.
How New York Employers Can Prevent Wrongful Termination Claims
Preventive measures may seem like a lot of upfront work when starting a business but are ultimately less costly than defending against a claim. Implementing transparent hiring, evaluation, and termination processes for employees is one of the earliest steps you can take when starting a business. Additionally, conducting regular trainings for supervisors and HR teams on discrimination and retaliation laws can ensure your employees at the forefront of these claims are compliant. At the core of these claims, employees often report being unheard, mistreated, and confused. These feelings can be mitigated by conducting fair and consistent performance reviews, with clear guidance on what the employee does well, and what can be done to improve upon; clear reporting channels for employees to raise concerns will also assist in this measure. These preventative steps not only protect against lawsuits but also foster a healthier and more transparent workplace culture.
What to Do If Your Business Is Facing a Wrongful Termination Lawsuit
If your business is served with a wrongful termination claim, responding quickly and strategically will be your best defense. Consulting an employment attorney with experience in defending wrongful termination claims, should be part of your strategy; legal counsel then should provide guidance on what documents should be collected to support your case and what defenses your business should take. Concurrently, you should review whether the employee properly filed with the EEOC or state agencies before filing suit. By taking these steps, employers can position themselves to build a strong defense while minimizing disruption to their business operations.
Conclusion
Wrongful termination lawsuits can be disruptive, costly, and damaging to a company’s reputation. However, employers have strong defenses available especially when backed up by proper documentation, clear policies, and strategic legal representation.
If your company is facing a wrongful termination claim or if you want to proactively strengthen your employment policies, our attorneys can help. Book a meeting today to learn more about wrongful termination in New York.
Contributions to this blog by Anastasia Pedraza.