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Can I fire employees for reasons other than poor performance in Arizona? What are the requirements?

Can I fire employees for reasons other than poor performance in Arizona? What are the requirements?

Yes, you can fire employees for reasons other than poor performance in Arizona, but there are certain requirements that must be met to avoid potential legal issues. Arizona is an at-will employment state, which means that employers can terminate employees at any time and for any reason, as long as the reason is not discriminatory or retaliatory. However, there are some exceptions to this rule.

Exceptions to at-will employment

  • Public policy exception: Employers cannot terminate employees for reasons that violate public policy. For example, an employer cannot fire an employee for reporting illegal activity or refusing to engage in illegal activity [2.2].
  • Implied contract exception: Employers cannot terminate employees if there is an implied contract that the employee will only be terminated for cause. Implied contracts can be created through employee handbooks, oral promises, or other actions that suggest job security [2.2].
  • Discrimination and retaliation: Employers cannot terminate employees based on protected characteristics such as race, gender, age, religion, or disability. Employers also cannot retaliate against employees for engaging in protected activities such as filing a complaint or participating in an investigation [4.1].

Requirements for termination

To avoid potential legal issues, employers should follow these requirements when terminating employees:

  • Document the reason for termination: Employers should document the reason for termination to show that it was not discriminatory or retaliatory. This documentation should include the date of termination, the reason for termination, and any supporting evidence [2.2].
  • Provide notice of termination: Employers should provide notice of termination to the employee. This notice can be verbal or written, but written notice is recommended to avoid any misunderstandings [2.2].
  • Comply with any contractual obligations: Employers should comply with any contractual obligations such as notice periods or severance pay [2.2].

It is recommended that employers consult with legal counsel to ensure compliance with all applicable laws and regulations.

[2.2]: AZRS 23-1502 [4.1]: AZRS 41-1481

Note that Arizona is an at-will employment state, which means that employers can terminate employees at any time and for any reason, as long as the reason is not discriminatory or retaliatory [2.2]. However, there are some exceptions to this rule. Employers cannot terminate employees for reasons that violate public policy, cannot terminate employees if there is an implied contract that the employee will only be terminated for cause, and cannot terminate employees based on protected characteristics such as race, gender, age, religion, or disability [2.2][4.1]. To avoid potential legal issues, employers should document the reason for termination, provide notice of termination, and comply with any contractual obligations [2.2].

Source(s):
Jurisdiction

Arizona