Want to make sure discipline sticks? Track and document details of incidents.

Details matter. It's far easier for your organization to defend a termination decision if you can show the court that you specifically pointed out the employee's work problems and offered an opportunity to improve, rather than impulsively pulled the trigger on a termination.

Recent case: Kristin, who is a practicing Catholic, began working in marketing for Tiffany and Co. Almost immediately, the company received reports about her alleged abrasive management style.

For example, she said Hispanics prefer blondes and told a Jewish employee on Good Friday that it was the day "the Jews killed Jesus."

The company put Kristin on a written warning and told her to attend management training sessions. She attended, but the trainer said she seemed dismissive.

The company fired her. She sued...