A recent news story raised a question I keep hearing from business owners and employees.
Can a company like Wells Fargo fire someone who has been accused of a crime but has not been convicted?
The short answer is yes. In the video below, I explain why.
What you need to know
Most employment in the United States is at-will. An employer can end employment at any time for any reason that is not illegal. A criminal conviction is not required.
Employers also have a duty to protect their brand, their customers, and their other employees. A court case can take years to resolve. Many companies decide based on the risk to the business, not the outcome in court.
Before acting, an employer should ask three questions:
- Does a contract or union agreement limit the company's ability to terminate?
- Does state law restrict how employers can use arrests? Some states do, including California and New York.
- Is the decision applied consistently, and is it free from any link to a protected class?
If the answers support the decision, the company is usually on solid ground.
For business owners
Put a written policy in place before a situation like this happens. Decide in advance how your company handles criminal accusations, arrests, and convictions. Then apply the policy the same way every time.
For employees
Read your employee handbook. It tells you what conduct the company expects and how it handles serious allegations.
Need help with a policy like this?
I work with small and mid-sized businesses as their fractional HR department. If you want help writing a policy, reviewing a termination decision, or building your handbook, reach out to Baezco Learning.
This video and article offer general HR information and do not constitute legal advice. I am an HR consultant, not an attorney. Laws vary by state and by situation. Talk with an employment attorney before making a termination decision.