Too many California founders tolerate toxic underperformers because they are terrified of getting sued. Then when they decide it’s time to let someone go, it’s often without any documentation that the lack of performance had been communicated to the team member.
While California is an “at will employment” state, the reality is a minefield which requires careful navigation. Defending a wrongful termination or retaliation claim requires meticulous, objective documentation. If your employee handbook is outdated or documentation lacks clear performance deficiencies, an abrupt termination creates the risk of having to defend a claim from an unhappy team member who feels like they have been wronged by the company.
Here are some helpful tips to help minimize the risk:
- Address the friction early: Don't let issues wait until an annual review. Have the conversation and make expectations clear.
- Implement clear timelines: Use measurable, documented Performance Improvement Plans (PIPs).
- Document every check-in: Focus strictly on facts and outcomes. Follow up with the team member in writing.
Clear is kind. Protecting your business and your team members' dignity requires clear and consistent communication. If a team member isn’t making the cut, they deserve to know and have the opportunity to improve.
