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Payton & Associates, LLC
Commercial Litigation Attorneys
Miami, Florida

Man sues employer after termination

Among the most valued assets for a Miami business are its principals, officers and employees. These individuals often put in hard work and dedication to make the company successful.

Unfortunately, however, disputes can arise when principals, officers or employees leave their position with the company. Just as a contract dispute can develop between the business and other entities, so too can a contract or other dispute arise between the business and its own employees.

For instance, a man recently filed suit against a Florida employer after the man claimed he was owed hundreds of thousands in wages, compensation and severance. The company fired the man after it claimed the man used an improper business arrangement to take money from the company. On the other hand, the man claimed his termination has affected his business reputation and that he was entitled to salary and benefits under a severance agreement.

It remains to be seen how the lawsuit will be resolved. The important lesson for other businesses, however, is to be vigilant of disputes involving a breach of contract, even from the business's own employees. Terminations of employees must be handled with great care in order to minimize the risk of a lawsuit developing after the termination.

The business must also devote its care and attention to detail to any contract entered into between the company and its employees. This includes employment contracts that may be executed when the employee is initially hired, as well as severance agreements that may be executed upon the employee's termination. These contracts are ripe for litigation if not handled properly. Consequently, it is essential that companies know how to protect themselves and mitigate the risks they face from internal and external sources.

Source: Watchdog Sarasota, "Ousted nonprofit CEO files lawsuit, starts new fundraising organization," Jessica Floum, Aug. 19, 2015

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