Be sure your performance standards are in writing and create a consistent written warning system. Let employees know what is expected of them and the consequences of not meeting those expectations. Documentation is critical. With proper documentation and warnings, employees are less likely to sue, and you have a better defense.

I live in Arizona which is a right-to-work state, and that means that you can fire anybody anytime for any or no reason as long as you do not violate any employment discrimination laws. Even in a state with employer-favorable laws, however, firing an employee can still result in a wrongful termination lawsuit. Never fire an employee hastily or when you are angry.

Once you decide to fire the employee, take some time preparing and documenting the reasons for the termination. For example, if the employee's last three performance appraisals were below your standards, this should all be documented and gives you a legitimate reason to fire the employee. If possible, have someone else present when you fire the employee. After the event, have the witness write down everything they observed and sign and date the document.

When you fire an employee, make a list of and collect everything the employee has that belongs to your company. For example, collect office keys and change passwords. Someone should accompany the employee to their workspace and wait while they collect their personal belongings. Then the person should accompany the employee to the exit. Never fire someone and then let them stay at your business afterward. Even if you fire them at 9:00 a.m., escort them to the exit and pay them for the whole day.

State the reasons for termination succinctly and objectively, and do not let the employee draw you into an argument. After you fire the employee, make complete notes about the event. Even if the employee unjustly alleges discrimination, you can defend yourself with your notes, your witness, and your witness' statement. If you intend to placate the employee with severance pay or some other monetary benefit, be sure the employee signs a waiver agreeing not to sue you if he or she accepts the benefit.

This information does not constitute legal advice and should not be relied upon as legal advice. Employment laws are not the same in all states. If you have concerns about your employees, consult an attorney in your area concerning your situation and facts.