Fired employee sues? Consider counter-claim.

Sometimes, an employee who has been fired for fraud or theft may sue, even though you didn't explicitly allege improper activity at the time. If you have good records showing exactly how you decided to terminate and can explain why you terminated the employee without stating the underlying reasons, you may be able to bring that up if she sues.

Essentially, it's possible to hit back with a counter-claim should the employee sue.

Recent case: Andrea worked at a Macy's department store. After the company terminated her, she sued, alleging she had been the victim of sexual harassment and sex discrimination.

That's when the retailer revealed that its decision to terminate Andrea was based on its belief that she had misused discount coupons employees could use to buy merchandise.

It filed a counter-claim to Andrea's lawsuit, alleging that she committed fraud, negligent misrepresentation, conversion and unjust enrichment through her misuse of the discount program. In other words, not only did Macy's claim it...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT