Terminating an employee is one of the highest-risk decisions a Washington employer can make. Even when a business has a legal reason for ending employment, the surrounding circumstances can significantly affect the level of risk exposure. Washington is generally an at-will employment state, meaning employers may terminate employment with or without cause, but not for an unlawful reason such as discrimination, retaliation, protected leave, wage complaints, safety complaints, or other protected activity. 

For small and medium-sized businesses, the goal is not to make every termination risk-free. That is nearly impossible. Instead, employers should focus on making thoughtful, consistent decisions that align with business needs, company values, and applicable Washington employment laws. The most significant employment claims often arise from situations that initially appeared routine, making it important to evaluate potential risks before taking action.

Start Before the Termination Decision 

A lawful termination often starts long before the termination meeting. When performance or conduct concerns arise, employers should evaluate the underlying facts, consider whether any protected activity may be involved, and determine whether additional review is appropriate before making a final decision. 

Many termination-related disputes stem from situations where concerns were never clearly communicated, expectations were not consistently enforced, or documentation does not adequately support the decision. Employers who address concerns early, communicate expectations clearly, and document significant issues are generally in a stronger position when difficult employment decisions arise. 

Before moving forward, employers should evaluate whether the circumstances support the decision and whether any facts could create additional legal risk. Common considerations include the reason for separation, prior performance discussions, consistency with past practices, and whether the situation involves any protected activity. Small factual differences can significantly affect risk, which is why seemingly straightforward terminations sometimes warrant additional review.

Watch for Protected Activity and Retaliation Risk 

Some of the highest-risk terminations involve employees who recently engaged in protected activity. Employers should proceed cautiously when a termination decision follows a leave request, accommodation request, workplace complaint, wage concern, safety report, or participation in an investigation. 

The issue is not necessarily whether termination is prohibited. Rather, employers should consider whether the timing and surrounding circumstances could later be questioned. A termination that appears justified on its face may become more difficult to defend if it occurs shortly after an employee exercised a protected right. 

This does not mean an employee becomes immune from termination after engaging in protected activity. However, employers should be prepared to demonstrate that any employment decision is based on legitimate business reasons and supported by objective facts.

When Should Washington Employers Pause Before Terminating? 

Certain situations deserve additional scrutiny before a final decision is made. Examples may include: 

• Recent protected leave or accommodation requests; 

• Reports of discrimination, harassment, or retaliation; 

• Wage and hour concerns; 

• Workplace safety complaints; 

• Participation in an internal investigation; 

• Inconsistent prior discipline; 

• Long-term employees or employees in leadership positions; or 

• Situations involving significant workplace conflict. 

These circumstances do not automatically prevent termination. However, they often involve additional legal and practical considerations that should be evaluated before moving forward.

Use an Objective Lens 

One of the most common challenges in employment decisions is relying on subjective conclusions rather than observable facts. Terms such as “bad attitude,” “not a team player,” or “difficult personality” can mean different things to different people. 

Whenever possible, employers should focus on specific conduct, documented performance concerns, policy violations, or measurable business impacts. Decisions grounded in objective facts are generally easier to evaluate and explain than decisions based primarily on subjective impressions. 

Employers should also consider whether similarly situated employees have been treated consistently. Inconsistent decision-making can create unnecessary risk, even when the underlying business concern is legitimate.  

Read our article about how AI can lead you to make biased hiring and termination decisions.

Clarify Roles and Responsibilities 

Organizations benefit from understanding who is responsible for making employment decisions and who is responsible for advising on risk, process, and compliance considerations. 

Clear decision-making authority helps avoid confusion, inconsistent messaging, and last-minute disagreements regarding the appropriate course of action. Whether a business relies on internal HR personnel, outside consultants, or legal counsel, it is helpful to establish roles before a difficult employment situation arises.

Understand Post-Separation Obligations 

A termination decision does not end an employer’s responsibilities to that employee. Washington employers should be aware that the separation may trigger obligations relating to final wages, benefits, personnel records, unemployment claims, and other employment-related matters. 

Employers should also understand how their policies address issues such as paid time off, incentive compensation, benefits continuation, and company property. Because post-separation requirements can vary depending on the circumstances, employers should ensure they understand their obligations before finalizing a separation. 

Personnel file requests and requests for information regarding the separation may also arise after employment ends. Having a process in place for responding to these requests can help reduce confusion and promote consistency. Washington employers have 21 calendar days, after receiving written notice, to provide the employee with their personnel file.  

See Washington State’s requirements for personnel files: https://app.leg.wa.gov/rcw/default.aspx?cite=49.12.250.

Conduct the Separation Professionally 

The separation meeting should be direct, respectful, and carefully prepared for. Employers should consider how the decision will be communicated, who should participate, and how practical matters such as benefits, final compensation, company property, and future communications will be addressed. 

In many situations, less is more. A clear explanation of the decision, delivered professionally and respectfully, is often more effective than lengthy debates or extensive justifications. Employers should focus on maintaining professionalism while ensuring the employee receives necessary information regarding next steps.

Consider Severance Strategically 

Severance agreements are not required in every termination. However, in certain circumstances, they can be a useful tool for managing risk, resolving disputes, and creating greater certainty regarding post-employment obligations. 

The appropriate approach depends on the employee, the circumstances of the separation, the employer’s goals, and the risks involved. Because severance agreements often involve significant legal considerations, employers should carefully evaluate whether a severance arrangement is appropriate before extending an offer.

Do Not Overlook Unemployment and Layoff Considerations 

Terminations may result in unemployment claims or requests for information from government agencies. Employers should be prepared to respond promptly and accurately when those situations arise. 

Additional requirements may apply when separations are part of a broader reduction in force, restructuring effort, or facility closure. Workforce reductions often involve considerations that differ significantly from individual performance-based terminations and may warrant additional planning.

When to Consult an Employment Attorney 

Not every termination requires legal review. However, employers should strongly consider seeking guidance when: 

• The employee recently engaged in protected activity; 

• The employee requested leave or an accommodation; 

• The employee has threatened legal action; 

• The termination involves allegations of discrimination, harassment, or retaliation; 

• The employee occupies a leadership position or highly compensated role; 

• Severance is being considered; 

• The separation is part of a reduction in force or restructuring; or 

• The facts are unclear or disputed. 

In many situations, a brief legal review before a termination occurs can identify risks that are far less expensive to address proactively than after a claim is filed.

Final Takeaway: Build a Process Before You Need It 

The best termination process is built before an employer is facing a difficult decision. Organizations that train managers, document significant performance concerns, apply policies consistently, and identify risk factors early are generally better positioned to navigate challenging employment situations. 

Every termination presents a unique combination of business, legal, and workplace considerations. While employers can reduce risk through thoughtful planning and consistent practices, there is rarely a one-size-fits-all answer. The most significant employment claims often arise from situations that initially appeared routine. 

If your organization is considering a high-risk termination, responding to a personnel file request, evaluating a severance agreement, or planning a workforce reduction, obtaining guidance before action is taken can help you understand the risks, evaluate your options, and move forward with confidence.