Bill Wiseacre was on cloud nine. Uh-Oh Enterprises had finally turned a corner. Prestigious clients were signing on. Their reputation was growing fast. To manage his chaotic schedule, Bill promoted Rachel—the friendly, dependable receptionist—to executive assistant. She was always the first smiling face clients saw. What could possibly go wrong?
A Smooth Receptionist, A Rocky Transition
However, Rachel’s transition was anything but smooth. Instead of greeting clients, she now juggled Bill’s calendar, investor meetings, and confidential documents. Before long, the pressure overwhelmed her. Deadlines were missed. Zoom links were wrong. In one instance, Bill got double-booked during a critical pitch.
Warning Given, But Not the Whole Story
As frustration grew, Bill asked Jenna—Rachel’s supervisor—to issue a formal warning. Unfortunately, the performance didn’t improve. So, Bill made the tough call to terminate her. To avoid an awkward conversation, Bill asked Jenna to handle the firing. But there was a problem—one Bill didn’t know.
The Missed Disclosure
Earlier, Rachel had confided in Jenna about her anxiety diagnosis. She requested more structured tasks to help her manage it. Yet, Jenna never passed this vital information on to Bill. So, when Rachel got fired, she felt blindsided. Understandably, she believed her termination was tied to her medical disclosure.
The Lawsuit Lands
A few weeks later, Bill received a letter from Rachel’s attorney. The letter claimed wrongful termination based on disability discrimination. As a result, a routine staffing decision became a legal nightmare. Legal fees grew. Stress mounted. Bill felt unprotected and blindsided.
No Insurance, Big “Uh-Oh”
Like many business owners, Bill assumed his general liability policy covered employment claims. Unfortunately, it didn’t. Without Employment Practices Liability Insurance (EPLI), he faced steep legal costs, settlement risks, and reputational damage.
The Momentum Law Perspective: What Bill Should Have Done
- Get EPLI Coverage – First and foremost, Employment Practices Liability Insurance protects businesses from claims like discrimination and wrongful termination. It covers legal defense, settlements, and judgments.
- Establish Termination Protocols – Next, use written performance reviews, formal warnings, and documented termination steps. This helps justify decisions and reduce legal exposure.
- Create Anti-Discrimination Policies – Additionally, include these in your employee handbook. Train management regularly on handling medical disclosures and accommodations appropriately.
- Train Supervisors Thoroughly – Finally, supervisors must understand legal duties tied to medical conditions and accommodations. They must communicate serious issues to HR or leadership promptly.
Final Word
In hindsight, had Bill sought legal guidance early, he could have supported Rachel and avoided litigation. Entrepreneurs must stay proactive. Protect your business. Invest in solid policies, supervisor training, and legal support. Don’t let your next big “Uh-Oh” become a lawsuit.
WHAT WOULD YOU HAVE DONE IN BILL’S SITUATION?
Blog posts from Uh-Oh Enterprises are cautionary tales brought to you by Momentum Law Group. The fictional characters in this series reflect real-life challenges that can hold entrepreneurs like Bill back from achieving their full potential. #donotbelikeBill
