How Do I Fire a Problem Worker?

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Ohio is an “employment at-will” state.  That means in Ohio you can generally fire anyone, at any time, with or without a reason.  But there are some situations that are not within the scope of the employment at-will doctrine or that require special handling.

If you have executed an employment agreement with the employee, and such agreement provides for a specified term of employment, then firing the employee prior to the end of the term would be breach of contract and subject you to damages.  If you have a union workforce and you are firing a union worker, you will need to comply with the firing procedures set forth in the collective bargaining agreement or risk having the union bring labor relations charges against you.

If the employee you are terminating is over 40, disabled, a female or a minority, you may find that the terminated employee makes claims of wrongful discharge based on age, disability, race or sex discrimination.  To defeat such claims you need to properly document the "non-prohibited" reason you are firing the employee.

When terminating an employee, it is best to have a system and to follow the system. You should have regular reviews where the employee’s performance and problems are evaluated and addressed.  If an employee is tardy, or absent, or fails to follow instructions, or is insubordinate, or is simply incompetent, you need to document such matters when they occur.  The employee should be given a “pink slip” and such slips should become part of the employee’s personnel file.  The employee personnel files should be kept under lock and key so employees can’t remove evaluations and reprimands from their file.

Please call or email if you have any questions about how to terminate a problem employee.

AND ONE MORE THING.     Thinking about selling your business?  Do you know how to determine the value of your business?  Are you getting paid cash at closing or in installments? Are you selling stock or assets?  Is the buyer assuming any liabilities?   Are you staying on as an employee or consultant to help transition the business?  Is the buyer keeping your employees?  Do you know what the tax consequences of the sale will be?  There are a lot of things to consider when selling a business.  Call or email me if you want to talk about it.  Jsenney@pselaw.com or 937-223-1130.