Navigating workplace laws can feel like walking through a minefield. Employers must balance productivity and business needs with a wide array of legal obligations. Employment law risks can arise in the simplest of situations: hiring, firing, discipline, medical leave, or responding to an injury. Understanding where those risks exist is the first step in avoiding costly litigation.

A Snapshot of Workplace Laws

Some of the most common laws employers must keep in mind include:

  • At-Will Employment
  • Tort Suits
  • Fair Labor Standards Act (FLSA) / Wage and Hour laws
  • National Labor Relations Act (NLRA)
  • Title VII of the Civil Rights Act
  • Age Discrimination in Employment Act (ADEA)
  • Older Workers Benefit Protection Act (OWBPA)
  • Equal Pay Act
  • Pregnancy Discrimination Act
  • Americans with Disabilities Act (ADA)
  • Family and Medical Leave Act (FMLA)
  • Workers’ Compensation
  • Immigration Reform and Control Act (IRCA)
  • Occupational Safety and Health Act (OSHA)
  • Unemployment Compensation
  • Restrictive Covenants and Severance Agreements

Each of these carries its own rules, requirements, and penalties if not followed correctly.

At-Will Employment vs. Unlawful Termination

In most states, employment is “at will,” meaning an employer can terminate an employee for any reason—or no reason at all—unless it is an unlawful reason.

Scenario 1: You hire a warehouse worker, and three weeks later you discover he’s an Alabama fan. Can you fire him?

  • Yes. At-will employment allows termination for reasons as arbitrary as football allegiance.

Scenario 2: You hire a warehouse worker, and three weeks later you discover he has epilepsy. Can you fire him?

  • No. Terminating based on a medical condition violates the ADA.

Scenario 3: Same warehouse worker—an Alabama fan with epilepsy. Can you terminate him?

  • No. The unlawful reason (disability) takes precedence, even if there are lawful reasons mixed in.

Unlawful reasons for termination include discrimination under Title VII (race, color, religion, gender, national origin), ADA (disability), ADEA (age), Pregnancy Discrimination Act, and retaliation for protected activity.

Medical Issues: ADA and FMLA Risks

Scenario 4: A billing employee has chronic performance issues. You’re preparing to terminate her, but she just disclosed that she needs carpal tunnel surgery and will be out six weeks. Can you terminate her?

  • Performance-based terminations are lawful.
  • Medical-based terminations are not.
  • Motivation matters. If the termination appears connected to her medical disclosure, liability risks increase under the ADA and FMLA.

This is why proving motive is central in employment law.

Process Matters

Employment laws don’t just regulate outcomes—they regulate process.

  • ADA and FMLA require specific procedures, forms, and documentation.
  • Failure to follow process can itself create liability, even if the final decision was otherwise lawful.
  • HR investigations into harassment, discrimination, or retaliation claims must follow a defined process, or employers risk losing defenses in litigation.

Documentation and Evidence

The best defense against claims is contemporaneous documentation:

  • Formal: write-ups, reviews, performance improvement plans.
  • Informal: emails, notes, incident logs.

The worst evidence? “He said, she said” testimony. Judges may dismiss cases with strong documentation. Without it, cases often go to juries, where risks and costs multiply.

Workers’ Compensation Intersection

Workers’ compensation is intentionally broad, covering “an accidental injury arising out of and in the course of employment.” It includes specific incidents, repetitive use, and aggravations of pre-existing conditions.

Going back to our billing clerk example: her carpal tunnel claim is accepted as work-related. After surgery, her doctor clears her for light duty.

Key Questions:

  • Can you offer her a light duty job and force her back?
  • What are the WC issues? (Return-to-work obligations, medical treatment panels, wage replacement)
  • What are the employment issues? (ADA accommodations, FMLA leave rights, discrimination risks)

Often, WC, ADA, and FMLA overlap. Employers must navigate all three to avoid liability.

Discrimination Risks: Inconsistent Treatment

Treating “similarly situated” employees differently can create a presumption of discrimination. If an employee suffers an adverse employment action but can show another employee in a similar situation was treated better, the employer must prove a legitimate, non-discriminatory reason. Inconsistent supervision is a common risk factor—this is where HR’s role in applying consistent company-wide standards is critical.

Workers’ Compensation Best Practices

To reduce WC and employment law risks, employers should:

  1. Investigate Early – gather statements, incident reports, and witness accounts immediately.
  2. Document Everything – both WC process and performance issues.
  3. Provide Medical Care Promptly – emergency or panel care as required.
  4. Maintain Control of Treatment – post and explain the panel of physicians at orientation and after any accident.
  5. Support Return-to-Work – offer light duty where possible.
  6. Be Consistent and Respectful – juries notice fairness.

Bottom Line: Employers must not only know the laws but follow the correct processes, document decisions carefully, and treat employees consistently. Walking this minefield requires vigilance, but the right steps can dramatically reduce liability risk.