Follow these suggestions to help limit your exposure to wrongful termination lawsuits:

Review employee handbooks, work rules, job applications and other forms of employee communications to delete or limit statements about promises of fair treatment, progressive discipline and permanent employment.
Consider using at-will language in employee handbooks and on employment applications. For example:

“You are free to resign at any time, just as the organization is free to terminate your employment for any reason at any time. This provision can be modified only in writing, signed by an officer of the company.” (To be signed by the employee:) I understand that my employment can be terminated at any time, with or without cause, and with or without notice, at the option of either the company or myself.

If language concerning circumstances under which an employee may be terminated is retained in employee handbooks, make sure that such language includes layoffs and changes in operations.
Include statements in employee handbooks and policies that you retain the ultimate discretion to make disciplinary and other employment decisions.
Carefully train supervisors about personnel matters and their obligations under laws that cover the employment relationship. For more information, see Investigating an Employee.
Insist on thorough and complete documentation of supervisory decisions involving all personnel matters. Review what job interviewers, including supervisors, say to prospective employees. Avoid statements such as, “A good future exists here if you work hard.”
Use standardized language in all interviews. Make sure that interviewers stick to the “script.”
Make sure those involved in hiring and disciplinary decisions understand the rules relating to criminal history information. For more information, see Restrictions on Obtaining Criminal History.
When recruiting personnel, avoid references to “job tenure,” “partnership track,” “career path,” “security,” “permanent” and “the future.”
Establish a system to review performance evaluation forms so the evaluation correlates with the particular job the employee performs. Review completed evaluations to make sure that individuals are not overrated. Consider using narrative rather than checklist evaluations.
Conduct employee reviews in a timely fashion. Conduct them accurately and consistently with company policy and practice.
Consider not using an introductory period for a new employee. If you decide to use an introductory period, avoid the term “probationary period.” Courts have determined that successfully passing a probationary period can indicate permanent status, conflicting with at-will employment status. If you use an introductory period, define its purpose. State that completing the period does not increase the employee’s rights in their job.

For example: An introductory period is a training period and a time to get acquainted. Completing an introductory period does not guarantee continued employment. After you complete that period, you still can resign and the company still has the right to terminate your employment at any time, with or without cause.

Standardize the method you use to terminate employees. Do not deviate from the established method. Make sure that the system includes a review of employee terminations by upper management.
Carefully monitor all statements made by the employer representative in describing the reasons for and effect of the termination, such as in response to a UI claim or any other inquiry.
Centralize in one person or department any responses to reference requests from former or current employees to avoid inaccurate statements about the employee.
Conduct exit interviews.
Attempt to obtain a release and/or separation agreement from terminated employees.
Prohibit supervisors from providing letters of reference that contain inaccurate statements about the terminated employee.

Avoiding a Wrongful Termination Lawsuit

Limiting Exposure to a Lawsuit

Avoiding a Wrongful Termination Lawsuit