What are the steps an employer in Texas should take when terminating an employee?
As a lawyer, I can advise that when terminating an employee in Texas, an employer should follow certain steps to ensure compliance with state and federal law:
- Review the employment agreement: The employer should first review the employee's employment agreement to determine whether there are any provisions related to termination or notice periods.
- Determine the reason for termination: The employer should also determine the reason for the termination. If the employee is being terminated for cause (such as misconduct or poor performance), the employer should document the reasons why. If the employee's termination is due to a layoff or other business-related reason, the employer should also document this reason.
- Provide notice: If the employee is being terminated for reasons other than gross misconduct, the employer should provide the appropriate amount of notice. In Texas, there is no state law requiring employers to provide notice of termination, but employers should check the employee's employment agreement or written personnel policy for any notice requirements.
- Collect company property: Before terminating the employee, the employer should collect any company property (such as keys, badges, laptops or phones) in the employee's possession.
- Final paycheck: The employer should provide the employee with their final paycheck, including any owed wages and vacation or sick leave pay, in accordance with Texas state law. Texas law requires that the final paycheck be paid on the next scheduled payday, or within six calendar days if the employee was suspended.
- Benefits continuation: The employer should inform the employee about their options for benefits continuation, such as COBRA or state continuation coverage.
- Follow anti-discrimination laws: Employers should be careful not to discriminate against an employee when terminating their employment. Discrimination can include any adverse employment action taken against an employee based on their protected status, such as age, sex, race, religion, or disability.
Overall, employers in Texas should make sure that they are following all applicable state and federal laws when terminating an employee, as well as any contractual obligations. An employer should also be prepared to handle any potential retaliation claims that may arise from a termination. If an employer is not sure about the legality of the termination, it is advisable to consult with a licensed attorney for guidance.