Professionals in industries that have a lot of staff turnover need to be particularly mindful of legal considerations involved with terminating someone’s employment. Construction companies often have continually changing crews and may find it necessary to terminate individual crew members as their staffing needs change. Improper firings could result in legal claims and considerable liability for construction companies. Team leaders must be aware of applicable employment law in order to practice full compliance and avoid unnecessary liability exposure.
What Constitutes an Illegal Firing?
Any firing that is discriminatory is unlawful may run afoul of both federal and state law. Discrimination occurs when an employer takes adverse action against a staff member because he or she belongs to a protected class. Typically, status as a protected class involves traits such as sex, race, or disability. Any other reason for terminating someone because of an individual trait is not discriminatory. In other words, a discrimination claim cannot prevail simply because an employee can demonstrate that another employee received more favorable treatment.
Retaliatory terminations are also unlawful. When employers fire staff members because they have reported a safety concern to regulatory authorities or filed a claim with the state’s workers’ compensation program, this type of action constitutes an illegal firing. Construction insurance which includes coverage for employment practices can be an important safeguard for companies to handle claims alleging that a firing was illegal.
How Do You Fire an Employee Lawfully?
Employers can lawfully terminate employees when their performance on the job is not satisfactory. Frequent lateness or absences are just cause to terminate personnel. However, it is worth noting that absences which are protected under the Family and Medical Leave Act may not be grounds for termination.
How Can You Avoid Problems?
It is usually a good practice to have another person other than the staff member who is losing his or her employment present at a firing. The presence of a witness may help to deter claims that an employer cited an improper reason for a termination.
Issuing warnings prior to termination may have evidentiary utility in the event of a claim. Documentation of disciplinary action shows that there were legitimate issues with performance that precipitated the termination. Construction insurance carriers that offer coverage for employment law matters can help companies respond to claims alleging that the reason or way that they were fired was improper.
Contracting companies can avoid serious financial liability by establishing policies about terminations that are consistent with the best practices in the industry and reflect full compliance with all federal and state regulations. Including an employment practices liability policy in a construction insurance package is another important way for companies to mitigate their risk exposure.
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.
