Termination is a very delicate aspect of employer-employee relations. Employers should take the necessary steps to avoid any conflict that could result in a lawsuit.  The most important step is documenting the decision to terminate an employee.  All documents relating to the dismissal, including a copy of the termination letter, should be presented to the employee in the exit interview.  Such documentation should be kept on file because it may become evidence in any suit brought by an employee for wrongful termination.

Another way to avoid conflict is to lessen the impact of a dismissal. For example, some companies pay an employee for a stated length of time after dismissal.  Such offerings may help alleviate stress encountered by a recently terminated employee, such as money troubles on the employee’s part, and could result in a more amicable separation.

For security reasons, a list should be compiled and given to the terminated employee of all the company’s belongings that should be returned upon termination, such as keys, credit cards, and software.  It is also advisable to seek legal counsel when making termination decisions.  Terminations are difficult for all parties involved.  Each termination should be done with careful consideration and evaluation.

For any comments and/or questions about this blog, please contact us at (919) 791-0900 or ralph@dileone.com.

The DiLeone Law Group, P.C.

Another reason an employee may be terminated is the layoff.  Employees are laid off when budget cuts or lack of work cause the employer to sever the working relationship with one or more employees in order to restructure the company or rectify a financial problem. This termination is unique because the employee is not being terminated as a result of his or her own actions.

All options must be evaluated before a company decides that reduction of workforce is the proper solution.   Employees who are laid off must not be treated like those who are terminated as a result of their actions or inactions.  When dealing with layoffs, it is even more important to structure the format of the exit interview to reflect the reason for termination and to emphasize that the employee is not to blame.

For any comments and/or questions about this blog, please contact us at (919) 791-0900 or ralph@dileone.com.

The DiLeone Law Group, P.C.

Generally, evaluations allow the employee the opportunity to correct their errors and improve themselves.  It is extremely important that the employer document the deficiencies found in any evaluation and that the offending employee receives a written document clearly stating these deficiencies.  Both the employer and the employee should sign the evaluation once it is final.

If the employee’s performance does not improve with evaluation and the counseling that should be given by his or her superior to support the evaluation, the employer should reevaluate the employee for improvements. If there are little to no improvements after all of these steps are taken, then termination may be considered. There is also the possibility that the struggling employee will choose to resign due to incompatibility with the job.

For any comments and/or questions about this blog, please contact us at (919) 791-0900 or ralph@dileone.com.

The DiLeone Law Group, P.C.

Generally, North Carolina is an “at-will” employment state.  In an at-will state, an employer can terminate employment at any time, for any reason.  However, employment contracts often override this general rule and provide that an employee can only be terminated “for cause.”     Employment contracts may arise explicitly in a written contract between the employer and the employee.  The agreement to termination only for cause may also arise by implication, even if not in writing, by reference to the employer’s personnel policies or employee handbook.  If a terminated employee raises a wrongful termination claim based on termination for cause, the question becomes what “cause” justifies the termination.

Employers should clearly define the circumstances that justify a termination for cause and should ensure these circumstances are described and explained to employees.  One such circumstance may occur when an employee severely jeopardizes the well-being of the company or the company’s other employees.  Poor performance may be another reason for termination for cause.  Such situations highlight the importance of having a system of regular employment review in place.  Such reviews should include documentation of any problems or poor performance so that, if the employee is later terminated, the employer will have support to justify the termination.  If the employer has the appropriate system in place and follows it, the employee should not be shocked or surprised by the notification of termination.  In our next post, we will discuss the evaluation process to address an employee’s poor performance.

For any comments and/or questions about this blog, please contact us at (919) 791-0900 or ralph@dileone.com.

The DiLeone Law Group, P.C.

As you can see from our previous two posts, a will is only part of the process of estate planning.  There are several other things to consider in your estate plan such as life insurance, estate taxes, funeral expenses, final arrangements, and business protection (if you own a business).

Life insurance could potentially help your survivors a great deal after your death. If you own a home, have young children, or owe outstanding debts or estate taxes, life insurance may be the best and least expensive way to ensure that your survivors need not carry the financial burden you may have left behind.  It may also be an inexpensive mechanism to transfer some of your wealth to your heirs.

Understanding estate taxes while creating your estate plan is very important.  Estate taxes are what the federal government (and many states, including North Carolina) collects from the assets in your estate that you leave your survivors.  Steps can be taken to reduce federal and estate taxes such as tax-free gifts.  While your estate may not be large enough to be subject to estate taxes, there are other very important reasons to create an estate plan, which will be covered in our next post.

For any comments and/or questions about this blog, please contact us at (919) 791-0900 or ralph@dileone.com.

The DiLeone Law Group, P.C.

Now that we have covered completing your estate plan checklist, included below are simple steps to making an estate plan.

1)       Create a will in which you may address many issues, including who you want to inherit your property; the name of a guardian for your children should something happen to you and the other parent simultaneously; and more.

2)       Consider the different types of trusts and how they might help you achieve your objectives.

3)       Create health care directives, which include a health care declaration, also known as a “living will” and a power of attorney for health care, which gives power to the person you choose to make health care decisions if you are unable.

4)       Create a general power of attorney (which some people refer to as a “financial” power of attorney). The person you name to be your agent does not have to be an attorney. You can give this trusted person the authority to handle your finances and property should you become unable to do so yourself.

5)       Revise beneficiary forms.  For example, naming a beneficiary for bank accounts and retirement plans may enable the funds to skip the probate process because the accounts are automatically “payable on death” to your beneficiary.  Likewise, stocks, bonds or brokerage accounts can also be registered to transfer to your named beneficiary upon your death.  Make sure you change your beneficiary designation forms to track your estate plan.

6)       Store your documents.  Your attorney-in-fact and/or your executor (the person you choose in your will to administer your property after you die) may need access to various documents, such as your will and information on your bank accounts.  It is crucial that you store your documents in an orderly fashion and in a safe place so they can easily be accessible to your representatives after your death or upon your inability to make decisions on your own.

For more information regarding any of the above or if you have any comments and/or questions about this blog, please contact us at (919) 791-0900 or ralph@dileone.com.

The DiLeone Law Group, P.C.

Estate planning involves a series of legal steps that will allow you to:

• Distribute your assets as you choose while reducing the time and expense of probate while minimizing the taxes that might be incurred.
• Execute a living will so you can decide how you will be treated in certain extreme situations.
• Execute a health care power of attorney and a general power of attorney, where you choose the family members, friends and/or associates who will make decisions for you when you are incapable of doing so yourself.

Estate planning is important because it allows you to direct how your property – real and personal – is to be distributed after your death.  Otherwise, your property will be distributed according to a method the government has legislated and codified, which may result in your assets being distributed in ways you did not want.  Sometimes a trust will also be an important part of your estate plan.  A good estate planning professional will be able to help you decide which type of trust and how many trusts you might need. 

Though a will is an essential part of estate planning, it is important to have the other documents as part of your estate plan to further assist your heirs during tough times in your life and upon your death. Such documents will include the above mentioned health care and general power of attorney and a living will.

For any comments and/or questions about this blog, please contact us at (919) 791-0900 or ralph@dileone.com.

The DiLeone Law Group, P.C.