Termination of At-Will Employee

KMS · May 2001

We have an employee who we hired a couple of weeks ago as a bilingual customer service rep. Since we hired the employee we have heard through the grapevine that the employee stole thousands of dollars from an individual in the community. No formal charges have been filed at this point, however.

The employee will be handling money for our organization. The employee is an at will employee. We would like to dodge any potential bullet, and would like to fire the employee. The only reason for firing this employee would be the rumor we heard. Any suggestions?

Big Fred · May 2001

If your backgound check, assuming you perform
such a task, does not provide a "for cause"
reason to terminate and the employee's
current performance does not provide a
"for cause" reason to terminate, I would
wait until I had a "for cause" reason.
In the absence of such, I would contact
councel prior to taking action.

dhnyct · May 2001

Your concern is valid, but the key word is "conviction". Employment at will still carries a lot of legalities.

Gar · May 2001

First off, since there doesn't appear to be a reasonable cause to terminate, I wouldn't do it. Secondly, that the employee is bi-lingual begs the question of his/her ethnicity. If you terminate without good cause and the employee is, lets say Hispanic, you could find yourself on the losing end of a discrimination claim.

Theresa Gegen TX · May 2001

It is really not fair to terminate an employee based on a "rumor" even if he is at-will. But as the employer in this situation, you certainly can investigate the rumor. However, you may want to hire some outside consultant to do so.

There are so many exceptions to the "at will" doctrine, that no one can give you an answer off the cuff about what risks you may entail by firing the employee outright. Before you do anything, you may want to meet with employment counsel.

Good Luck!

(BJ) · May 2001

In Michigan, it is against the law to make an employment decision based on an arrest record, It would appear that to make a decision based on a rumor record, would fall under wrongful discharge regardless of your at will status. At will can fire with or without notice or cause as long as there is not a violation of the law. Need to check to determine if this rumor is related to issues such as steretyping, race, age, etc. Good luck.

Darryl Lee UT · May 2001

A thorny problem indeed! I would be very cautious in terminating an employee based on unsubstantiated rumors. Would you fire an employee solely on the basis of a rumor that they were taking drugs? Surely not. You would want some additional facts to substantiate the allegation. Although Utah is an at-will employment state, and you can fire anyone for any reason or no reason (as long is it isn't for a discriminatory reason), doing so here, based on the rumor, could open you and your company up to defamation liability if the word was spread regarding the reason for your termination, and the rumor proved untrue. While this person might not have a cause of action against you for wrongful termination, he might pursue a defamation claim. If there is a real concern about this person's ability to be honest with your money, you might consider a temporary reassignment to a position where there would be little or no access to money, while the rumors and accusations work their way through the system. If I were to pursue this avenue, I would be absolutely upfront with the employee, and explain the basis for the temporary reassignment. That gets the issue on the table, and gives him a chance to respond.

Darryl Lee, Wood Crapo LLC, Editors of Utah Employment Law Leter

TheCol · May 2001

Ok. I'll take another view. At-Will in Florida means fire for any but a discriminating reason. If the job description of the new hire is at all broad, one can find a hook upon which to move the person along. Hiring a replacement in the same age-ethnic category with the bilingual skill you need will deter discrimination in discharge charges.

Termination of At-Will Employee

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