Today, many employers face significant challenges in managing their workforce while avoiding potential legal pitfalls. The rise in employment law cases across Tennessee and nationwide has created new compliance challenges for businesses of all sizes. Even well-meaning companies can find themselves entangled in labor law disputes.
At Hudson, Reed & Christiansen, we understand how stressful it can be for business owners to manage day-to-day operations and the potential for employment-related litigation. Here’s what every employer should know about labor and employment laws — and how you can limit your liability.
Understanding Wrongful Termination from the Employer’s Perspective
Wrongful termination occurs when an employee is fired in violation of federal, state, or local laws. While Tennessee is an at-will employment state — meaning employers can generally terminate employees for any reason or no reason at all — there are key exceptions that can give rise to employment law cases. These exceptions include, but are not limited to:
- Discrimination based on protected characteristics (race, gender, age, disability, sex, national origin, religion, national origin, etc.)
- Retaliation for whistleblowing, participating in a legal investigation, or exercise of legal rights (including engaging in protected activities such as taking family medical leave, filing a workers’ compensation claim, or filing a labor complaint)
- Breach of contract, violation of company policies, violation of collective bargaining agreements/union contracts, etc.
Employers should never assume that at-will employment provides blanket protection. Any termination must be approached with caution, documented thoroughly, and aligned with both internal policies and applicable federal and state employment laws.
Employment Discrimination: Prevention Is Key
Federal laws such as Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA), and the Age Discrimination in Employment Act (ADEA) and Tennessee laws such as the Tennessee Human Rights Act (THRA) and the Tennessee Disability Act (TDA) prohibit workplace discrimination and retaliation.
Employment law cases often arise when an employee believes they’ve been treated unfairly in hiring, promotion, discipline, or termination based on a protected characteristic or when an employee believes that they were denied reasonable accommodations for their disabilities.
Employers should take affirmative steps to mitigate employment discrimination risk, including, but not limited to:
- Maintaining clear anti-discrimination policies and regularly update employee handbooks, including policies governing the request for reasonable accommodations for employees with disabilities
- Training supervisors and HR staff on appropriate conduct, legal requirements, and conflict resolution
- Documenting employment decisions (e.g., promotions, terminations, demotions, warnings, evaluations, etc.) in a consistent and unbiased manner
- Implementing a complaint procedure that allows employees to report concerns internally.
Tips to Stay Labor Law Compliant
Being proactive is the most effective way to avoid becoming a defendant in an employment law case. Here are five ways to stay compliant:
1. Keep up with changing laws.
Employment laws evolve regularly. Stay informed about federal and Tennessee-specific regulations to ensure your practices remain compliant.
2. Create clear, written policies.
Well-drafted policies set expectations for behavior and performance. These should cover everything from disciplinary actions to equal opportunity standards.
3. Apply rules consistently.
Uneven enforcement of rules can be interpreted as discrimination. Apply company policies uniformly for all employees and document all decisions.
4. Encourage open communication.
When employees feel heard, they’re more likely to address concerns internally. Create a culture of feedback and transparency.
5. Consult an employment attorney before terminating or disciplining.
Not every termination or disciplinary action requires legal review, but if there’s any doubt, or if the employee falls into a protected class, a quick consultation may save you from a lengthy and expensive lawsuit down the line.
What To Do If You’re Sued
Even when best practices are in place, employment law cases may still occur. If you receive a complaint or legal notice:
- Do not retaliate. Any adverse action taken against a complaining employee can worsen your legal standing. Retaliation can include, but is not limited to, termination, demotion, reduction in salary, suspension, transfer to another role or department, negative evaluations or reprimands, or creating a hostile work environment.
- Preserve all records. Emails, personnel files, and notes related to the complaint will be essential to your defense.
- Notify your legal counsel immediately. Early legal intervention can lead to faster resolution, whether through dismissal, mediation, or settlement.
We’re Here to Defend Your Business
Employment disputes can be disruptive, but you don’t have to navigate them alone. At Hudson, Reed & Christiansen, we’ve helped Tennessee employers successfully resolve complex employment law cases involving wrongful termination, discrimination, retaliation, and more.
Whether you’re looking to prevent future claims or need a trusted advocate to defend your business in court, our experienced legal team is here to help.
If your business is facing a lawsuit — or if you simply want to reduce your risk — schedule a consultation today. Let us help you protect what you’ve built.