What to do when your former employee files a wrongful termination lawsuit

Image source: pennrecord.com

You’ve recently let go of an employee under a circumstance that as far as you’re concerned, seems fair. However, the former employee strikes back with a wrongful termination claim and you find yourself and the company in a jeopardized position.

First things first: don’t panic. We live in such a litigious society that suing is everyone’s kneejerk reaction when something goes wrong. Here are some tips to protect yourself when such situation arises:

Image source: mwcfirm.com

The first thing to do when you receive a demand letter from your former employee is to talk to your attorney, to review the grounds of your employee’s termination. Give the attorney the complete peronnel file and any correspondence or emails of the employee. Once you and your attorney have a clear view of the facts, have your attorney draft a response letter. Take note that it is important to respond quickly once you find out that a former employee is suing. Swift action will help you cut the problem significantly, as this is the time to settle or release a statement debunking the employee’s claims. In addition to consulting your attorney, you should submit the claim to your insurance broker to determine if you have coverage. Many business policies are written to include liability on employment-related claims. If you have insurance, the carrier will pay the legal costs going forward and make decisions about how to best handle the claim.

Dan DeKoter is a partner at DeKoter, Thole, Dawson & Rockman, PLC, based in Sibley, Iowa. He attended Calvin College for his degrees in Philosophy and English. He then went to the University of Iowa for his Juris Doctorate. His general practice emphasizes civil litigation, business and employment law, and estate planning and administration. For more articles like this, visit this page.