{"id":5105,"date":"2016-04-04T10:47:57","date_gmt":"2016-04-04T15:47:57","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/liability-and-insurance\/procedures-to-reduce-the-risk-of-litigation-and-liability-for-di.html"},"modified":"2024-05-23T02:20:46","modified_gmt":"2024-05-23T07:20:46","slug":"procedures-to-reduce-the-risk-of-litigation-and-liability-for-di","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/liability-and-insurance\/procedures-to-reduce-the-risk-of-litigation-and-liability-for-di.html","title":{"rendered":"Employment Terminations: Reduce Your Liability and Risk of Litigation"},"content":{"rendered":"\n
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Employment Terminations: Reduce Your Liability and Risk of Litigation<\/h1>\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Susan Mills Richmond, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Business owners can’t always hire the perfect worker and keep them forever. Few people enjoy firing employees\u2014no matter what the reason. There is also a risk of litigation if owners mishandle firing an employee.<\/p>\r\n

Nothing can prevent an employer from being sued if an employee wants to make a claim. But small business owners can reduce the litigation risk by following good business practices and treating all employees according to company policies.<\/p>\r\n

Every termination is unique, so having a \u201ctermination checklist" in place is difficult for every situation. But owners should consult a business attorney to have an outline ready for when it’s time to call someone to the back office.<\/p>\r\n

Before Termination<\/h2>\r\n

Some things can limit your liability before you hire your first employee. If you have a sole proprietorship, consider incorporating. Remember, in the event of a lawsuit, a judgment can reach into your personal assets if you have a sole proprietorship. A limited liability company or corporation protects your assets.<\/p>\r\n