The Year-End Termination Minefield 🤯

Your November 2025 Employment Law Survival Guide

Picture this:

It’s December 15th. You’ve decided to let someone go before year-end for budget reasons. You call them into your office, hand them a termination letter, and tell them it’s effective immediately. They ask why. You say, “It’s just not working out.” Two weeks later, you receive a demand letter from an attorney claiming age discrimination—and you realize the employee you terminated was 56 years old, and their replacement is 28. You have no documentation of performance issues. No progressive discipline. No witnesses to the termination meeting. Just a massive legal problem that’s about to get expensive.

Sound familiar? (If your stomach just dropped, keep reading.)

The Q4 2025 Reality Check: Why November-December Are Peak Termination Season

Let’s talk about what makes year-end terminations particularly treacherous:

The Year-End Termination Spike

In August 2025, 1.1% of employed people were laid off or discharged. This was equal to the average over the previous 12 months (1.1%). Companies accelerate terminations in Q4 to meet year-end budget targets, avoid year-end bonuses, or “clean house” before the new year.

Translation: More terminations happen in November and December than any other time of year, which means more lawsuits, more claims, and more expensive mistakes.

The $2.3 Million Wake-Up Call

In 2025, a marketing coordinator was awarded $2.3 million after being fired for refusing to work unpaid overtime during her pregnancy, marking a significant shift in employment law that affects both workers and employers nationwide. Courts are increasingly recognizing broader categories of protected activity and awarding larger settlements.

The days of “we can fire anyone for any reason” are over. Modern employment discrimination rarely involves obvious statements—it’s subtle patterns that require sophisticated legal analysis to prove, and courts are getting better at spotting them.

The EEOC Statistics You Can’t Ignore

Tens of thousands of workplace discrimination charges are filed annually with the Equal Employment Opportunity Commission (EEOC), and many of these charges are related to potentially wrongful termination claims based on protected characteristics. Even more concerning? Some experts in employment law estimate that the actual number of wrongful terminations could be five to ten times higher than the number of formal termination claims filed.

Why the gap? Employees may fear retaliation, lack necessary resources, or be unaware that their dismissal constitutes an illegal termination.

The Filing Deadline Reality

You have 180 calendar days to file a discrimination charge with the EEOC, extending to 300 days if your state has a local agency that follows similar anti-discrimination laws. This means terminations you make in November 2025 can haunt you through August 2026—right when you’re trying to enjoy next summer.

The Two Fatal Mistakes That Turn Terminations Into Lawsuits

Two pitfalls consistently turn routine terminations into six-figure legal nightmares: lack of documentation and discriminatory patterns.

Mistake #1: The “We Don’t Need Documentation” Delusion

You terminate someone for “performance issues” without ever documenting a single problem, and there are no performance reviews. No warnings. No performance improvement plans. Just your word against theirs.

Data from SHRM points to a significant benefit: companies that conduct systematic legal reviews face 45% fewer wrongful termination claims. Documentation isn’t busywork—it’s your legal shield.

What proper documentation looks like:

Written performance reviews (not just verbal feedback)
Documented warnings with specific examples and dates
Performance Improvement Plans with measurable goals
Records of coaching sessions and follow-up meetings
Witness statements when applicable

Mistake #2: The Pattern You Don’t See (But a Jury Will)

You think you’re making individual, merit-based decisions. But step back and look at the pattern: Over the past year, you’ve terminated three employees. All three were over 50. All three were replaced by employees under 35. You didn’t intend to discriminate based on age, but the pattern tells a different story.

Statistical analysis showing employees over 50 were disproportionately targeted in “restructuring” and email discovery revealing age-related comments in management communications resulted in an $1.8 million verdict for a 58-year-old sales director.

Protected characteristics you CANNOT terminate for:

Race, color, religion, sex, national origin (Title VII)
Age (40 and over) (ADEA)
Disability (ADA)
Pregnancy (Pregnancy Discrimination Act)
Genetic information (GINA)
Sexual orientation and gender identity (in many states)

Protected activities you CANNOT retaliate for:

Filing a sexual harassment complaint, reporting safety violations to OSHA, participating in a workplace investigation, or taking legally protected family or medical leave
Requesting reasonable accommodations
Discussing wages with coworkers
Engaging in union activities
Whistleblowing about illegal practices

Critical November 2025 Actions You Cannot Skip

Year-end terminations require extra scrutiny. Here’s what you must do before making any termination decision in Q4:

The Pre-Termination Legal Audit

Your legal team or qualified HR professionals must examine all documentation before proceeding. Companies that maintain meticulous records typically resolve post-termination questions more efficiently.

Ask these questions BEFORE you terminate:

Is this person in a protected class? (Over 40? Disabled? Pregnant? Minority?)
Have they recently engaged in protected activity? (Filed a complaint? Requested accommodation? Discussed wages?)
Is the documentation air-tight? (Specific examples, dates, witnesses, progressive discipline?)
What’s the pattern? (Who else have we terminated this year? Any concerning trends?)
Did we follow our own policies? (Does our handbook require certain steps?)
Have they received fair opportunity to improve? (Coaching, PIP, reasonable timeline?)

The Documentation Checklist

Before any termination meeting, you must have:

✅ Employment agreement/offer letter

✅ All performance reviews (good and bad)

✅ Disciplinary notices and warnings

✅ Performance Improvement Plan (if applicable)

✅ Attendance records

✅ Any complaints filed by or about the employee

✅ Records of policy violations

✅ Witness statements

✅ Notes from coaching/feedback sessions

✅ Email trail showing performance discussions

Under federal law, final pay is generally due by the next regular payday, but many states require final pay sooner. Careful documentation of your reasons for termination and activities leading up to that decision can help you avoid or respond to claims of wrongful termination or discrimination.

The Termination Meeting Protocol

Do:

Have a witness present (typically HR)
Hold the meeting in private
Be clear and direct about the decision
Stick to documented facts
Listen to their response
Provide termination letter in writing
Explain final pay, benefits, and COBRA timing
Collect company property
Coordinate IT access removal

Don’t:

Meet alone
Argue or debate the decision
Make promises you can’t keep
Apologize excessively (can undermine documented reasons)
Say anything false to “soften the blow”
Terminate via email, text, or phone (unless remote employee)
Let them “resign” to avoid unemployment (creates ambiguity)

What "Getting It Right" Actually Looks Like

A proper termination process with thorough documentation and fair procedures follows this timeline:

May 2025: Document first performance concern with specific examples. Have coaching conversation with detailed notes.

June 2025: Issue written warning after performance doesn’t improve. Set clear expectations with measurable goals and timeline.

July 2025: Implement 60-day Performance Improvement Plan with weekly check-ins. Document all meetings with specific outcomes and feedback.

September 2025: Meet with employment attorney to review all documentation before any termination decision is made.

October 2025: When improvement doesn’t occur despite opportunities, make termination decision with HR present. Review thoroughly for any protected class or protected activity concerns.

November 2025: Conduct professional termination meeting with witness present. Provide clear written termination letter citing specific documented examples. Follow state law requirements for final pay timing.

Result? No lawsuit. No EEOC claim. No drama. Just a clean, defensible termination based on documented performance issues and fair process.

This approach works because:

Every step is documented in writing with dates and specifics
The employee received fair warning and genuine opportunity to improve
Legal review happened BEFORE the termination decision was finalized
Protected class and protected activity concerns were thoroughly checked
The process followed company policy consistently across all employees
Proper witnesses and comprehensive documentation existed throughout the entire process

When terminations are handled with proper documentation, clear communication, and legal compliance, they’re straightforward business decisions—not legal nightmares.

The Bottom-Line Benefits of Getting Terminations Right:

Avoid six-figure settlements – The average wrongful termination settlement ranges from $40,000 to over $200,000

Protect your reputation – Employment lawsuits can damage your employer brand and make recruiting more challenging.

Maintain team morale – Proper terminations show remaining employees that decisions are fair and documented

Sleep at night – Knowing you followed the law and treated people fairly reduces stress

Defensible decisions – Proper documentation makes defending claims straightforward, not stressful

Ready to Stop Gambling with Your Company's Future?

November is when year-end termination decisions get made. Before you make any moves, answer these questions:

Do you have a documented termination process?
Are your managers trained on employment law basics?
Have you reviewed your handbook for consistency?
Do you know which state laws apply to your employees?
Can you defend every termination decision you’ve made this year?

If you hesitated on any of these, we need to talk.

Meet with our MBS Team to audit your termination procedures and protect your business!

The More you Know

P.S. If you just thought, “Oh crap, we terminated someone last month without documentation,” that’s precisely why you need this audit. Let’s ensure your subsequent termination isn’t your most costly mistake!

P.P.S. All states except Montana allow “at-will” employment, but the reason for termination cannot be illegal, including discrimination or retaliation for reporting illegal or unsafe workplace practices. “At-will” doesn’t mean “any reason”—it means “any lawful reason.” Know the difference.