Wrongful Termination Risk: What Every Veterinary Practice Owner Must Know Before Firing an Employee

A practical guide to lawful terminations, federal compliance, and protecting your practice before and after the decision is made.

KEY TAKEAWAYS

• Even in at-will states, terminations can trigger costly claims under federal discrimination, retaliation, wage-and-hour, and leave laws.
• A well-drafted, consistently enforced employee handbook is your single best defense against a wrongful termination claim.
• Documentation and progressive discipline before termination are often what determines whether a claim succeeds or fails.
• Title VII, the ADA, the ADEA, the FMLA, the FLSA, OSHA, and the NLRA all impose limits on how and why you can terminate an employee.
• What you do after termination — final pay, COBRA notices, references, and property recovery — carries its own legal exposure.
• Oberman Law Firm can help you build handbooks, review terminations before they happen, and defend your practice if a claim arises.

Veterinary practices run on trust — trust between doctors and clients, and trust between owners and staff. When that staff relationship has to end, the way it ends matters as much as the reason behind it. Most veterinary practice owners are not employment lawyers, and understandably so — their expertise is medicine, not personnel law. But a poorly handled termination can expose a practice to real financial and reputational risk, even when the underlying decision to let someone go was entirely justified. This article walks through the liability landscape, the steps that should happen before a termination, the federal laws that frame the decision, and what to do once the employee is out the door.

The Liability Risks of a Wrongfully Handled Termination

Most U.S. employees, including veterinary staff members, are employed “at will,” meaning either party can end the relationship at any time, for almost any reason, or no reason at all. But “almost any reason” is doing a lot of work in that sentence. At-will employment does not protect an employer who fires someone for an illegal reason, and practices that skip proper process often hand a departing employee exactly the evidence needed to argue that an illegal reason was really behind the decision.

A wrongful termination claim commonly arises from one or more of the following:

• Discrimination claims — firing an employee based on race, sex, pregnancy, age, disability, religion, national origin, or genetic information.
• Retaliation claims — terminating someone shortly after they complained about harassment, discrimination, unpaid wages, or an unsafe working condition, or after they took FMLA leave.
• Public policy violations — firing an at-will employee in a way that violates public policy, such as terminating someone for refusing to perform an illegal act, for reporting a suspected violation of veterinary or controlled-substance regulations, or for exercising a legal right like jury duty or voting.
• Breach of contract or implied contract — terminating an employee in a way that contradicts specific promises made in an offer letter, employment agreement, or handbook language (for example, a handbook that promises progressive discipline before termination, and then is not followed).
• Defamation — making false or damaging statements about the reason for termination, either internally or to prospective employers, that harm the employee's reputation.
  Wage and hour exposure — failing to pay final wages, accrued and unused vacation (where state law requires payout), or overtime owed at the time of separation.

Even a claim that is ultimately unsuccessful can be expensive to defend, disruptive to a small practice, and damaging to staff morale and the practice's reputation in a tight-knit veterinary community. The best protection is not a perfect memory of what happened — it is a documented, consistent process that was followed before the termination ever took place.

Proper Steps Before an Employee Is Terminated

Courts, juries, and government agencies tend to look at one central question: did the practice follow its own rules, consistently, and can it prove it? The steps below build the record that answers that question.

1. Maintain a Detailed, Thoroughly Prepared Employee Manual

A current, well-drafted employee handbook is the foundation of a defensible termination. For veterinary practices, the handbook should go beyond a generic template and address the realities of practice operations. At minimum, it should include:

• An at-will employment statement — clearly defining the practice's at-will relationship with employees, while avoiding language that could be read as a promise of continued employment.
• Workplace conduct standards — attendance, dress code, client interaction, controlled-substance handling, and use of practice equipment and technology.
  EEO and anti-harassment policy — a clear anti-harassment and anti-discrimination policy with a defined, confidential complaint procedure and an explicit anti-retaliation commitment.
• A progressive discipline framework — a step-by-step outline of verbal warning, written warning, performance improvement plan, and final warning — while preserving the practice's right to skip steps for serious misconduct.
• Wage and hour policies — timekeeping, overtime, meal and rest breaks, and how time is recorded for hourly veterinary technicians and support staff.
• Leave policies — summarizing FMLA, ADA accommodation requests, jury duty, and any applicable state or local leave rights.
• Safety and controlled-substance compliance — controlled-substance security and DEA recordkeeping obligations specific to veterinary practice.
• A separation and offboarding policy — outlining final pay timing, return of practice property, and continuation of benefits.

The manual should be reviewed at least annually, acknowledged in writing (and re-acknowledged after material updates) by every employee, and applied the same way to every employee in a similar situation. A handbook that exists but is not followed is often worse than no handbook at all, because it becomes evidence of a promise the practice broke.

2. Document Performance and Conduct Issues as They Happen

Contemporaneous documentation — written at the time of the issue, not reconstructed afterward — is the single most persuasive evidence in a termination dispute. Documentation should be factual and specific (dates, times, what was observed, who was involved) rather than conclusory, and it should be signed or acknowledged by the employee where possible.

3. Apply Progressive Discipline Consistently

Follow the handbook's own disciplinary steps and apply them the same way across similarly situated employees. Inconsistent enforcement — disciplining one employee for conduct that was overlooked in a colleague — is one of the most common facts plaintiffs' attorneys look for.

4. Investigate Before You Act

Where termination follows a specific incident or complaint, conduct a prompt, impartial investigation, interview relevant witnesses, and document the findings before making a final decision.

5. Review the Decision Before It's Final

Before delivering the news, confirm the stated reason for termination is well-documented, consistent with how similar situations have been handled, and free of any connection — real or apparent — to a protected characteristic or protected activity. For any termination that involves a recent complaint, leave request, accommodation request, or injury report, legal review before proceeding is strongly recommended.

Federal Laws to Consider Before Terminating an Employee

Several federal statutes place limits on termination decisions. Coverage thresholds vary by law and practice size, but owners should be familiar with each:

Title VII of the Civil Rights Act — prohibits terminating an employee based on race, color, religion, sex (including pregnancy, sexual orientation, and gender identity), or national origin. Applies to employers with 15 or more employees.
Americans with Disabilities Act (ADA) — prohibits termination based on disability and requires reasonable accommodation of qualified employees with disabilities. Applies to employers with 15 or more employees.
Age Discrimination in Employment Act (ADEA) — protects employees age 40 and older from termination based on age. Applies to employers with 20 or more employees.
Family and Medical Leave Act (FMLA) — protects eligible employees who take qualifying medical or family leave from termination or retaliation for taking that leave. Applies to employers with 50 or more employees.
Fair Labor Standards Act (FLSA) — governs minimum wage, overtime pay, and recordkeeping; terminating an employee shortly after they raise a wage complaint can support a retaliation claim.
Occupational Safety and Health Act (OSHA) — prohibits terminating an employee for reporting unsafe working conditions.
National Labor Relations Act (NLRA) — protects employees' rights to discuss wages and working conditions and to engage in other protected concerted activity, regardless of whether the practice is unionized.
Uniformed Services Employment and Reemployment Rights Act (USERRA) — protects employees from termination based on military service obligations and guarantees reemployment rights.
Genetic Information Nondiscrimination Act (GINA) — prohibits termination based on genetic information, including family medical history.

Many states and localities layer additional protections on top of these federal floors, so a termination that appears defensible under federal law alone may still create exposure under state law. Practice-specific review is essential.

Protecting the Practice After Termination

The legal work is not finished once the conversation ends. The steps taken in the days after termination can materially affect the practice's exposure:

Process final pay promptly — Issue final wages, including any accrued and unused paid time off required to be paid out under applicable state law, within the deadline your state requires.
Send required benefits notices — Provide required COBRA election notices for group health plan continuation where applicable, and confirm the timing of benefits termination.
Revoke system and facility access — Disable building, computer, EMR/practice-management software, and controlled-substance access immediately upon separation.
Collect practice property — Recover keys, uniforms, devices, access cards, and any practice property, and document what was returned.
Retain complete documentation — Preserve personnel files, disciplinary records, and communications related to the termination; do not alter or discard them.
Standardize reference practices — Adopt a neutral reference policy (confirming dates of employment and position only) to reduce defamation exposure, and apply it consistently to every former employee.
Respond carefully to unemployment claims — Respond accurately and on time to state unemployment agency inquiries; inaccurate or untimely responses can undermine the practice's position in a later dispute.
Evaluate restrictive covenants — If the departing employee is bound by a non-compete, non-solicitation, or confidentiality agreement, review it promptly and, if needed, send a reminder letter regarding continuing obligations.
Communicate thoughtfully with remaining staff — Consider a brief, respectful internal communication to remaining staff about the departure to prevent rumor and preserve morale, without disclosing confidential details.

Call to Action: Steps Practice Owners Should Take Now

1. Audit your employee handbook — Have Oberman Law Firm review or draft your employee handbook to confirm it reflects current federal and state law and matches how your practice actually operates.
2. Standardize your documentation practices — Confirm supervisors and managers know how to document performance issues and apply discipline consistently across the team.
3. Build in a legal check-in — Before finalizing any termination — especially one involving a recent complaint, leave, accommodation request, or injury — have counsel review the decision.
4. Create a termination checklist — Put written offboarding steps in place covering final pay, benefits notices, property recovery, and system access so nothing is missed under pressure.
5. Review restrictive covenants — Have counsel review any employment agreements, non-competes, or non-solicitation provisions for your associates and key staff to confirm they are enforceable in your state.

How Oberman Law Firm Can Help

Oberman Law Firm works with veterinary practice owners to reduce employment-related risk before it becomes a claim. We can:

• Draft or update employee handbooks tailored to veterinary practice operations, including controlled-substance, safety, and leave policies.
• Provide pre-termination review to assess documentation and identify risk before a decision is finalized.
• Draft and review employment agreements, offer letters, and restrictive covenants for associate veterinarians and key staff.
• Train practice managers and supervisors on lawful documentation, discipline, and termination procedures.
• Represent the practice in responding to EEOC or state agency charges, unemployment disputes, and wrongful termination claims.

If you are considering a termination or want to put stronger protections in place before you need them, contact Oberman Law Firm to schedule a consultation.

This article is provided for general informational purposes only and does not constitute legal advice. Employment laws vary by state and locality, and the application of any law described here to a specific situation requires individualized legal analysis. Please contact Oberman Law Firm before taking action based on this article.