Hiring and Firing Checklist: Protecting Your Florida Business at Every Stage

Most employment problems don't start on someone's last day. They start on the first day when expectations weren't clear, or in the middle when performance issues weren't properly documented. Smart business owners know that how you handle hiring and firing determines whether you'll face expensive disputes, unemployment claims, and potential litigation.

Watch: How to Hire & Fire The Right Way

Start Strong: The Offer Letter That Protects You

Before your new hire walks through the door, you need an offer letter that does more than state their salary. This document establishes the foundation of your entire employment relationship and becomes critical if problems develop later.

Your offer letter should detail exactly what the person's responsibilities are and what you expect from them. Be specific. Don't just write "sales duties" when you can outline "responsible for managing 50 client accounts, making 20 outbound calls daily, and achieving monthly sales targets of $50,000." The more detailed you are now, the clearer the standards become if you need to address performance issues later.

Compensation details matter too. Specify not just how much you'll pay, but how and when. If bonuses are part of the package, explain exactly how they're calculated and when they're paid. If compensation changes based on performance metrics, define those metrics clearly. Ambiguity here leads to disputes later.

The 90-Day Probationary Period

Florida is an at-will employment state, which means you can terminate employment at any time for any legal reason. However, explicitly stating a 90-day probationary period in your offer letter provides several benefits.

First, it sets expectations. New hires understand they need to prove themselves during this initial period. Second, it creates a natural checkpoint for evaluating whether the relationship is working. Third, it provides a clear framework for having honest conversations about performance without the employee being surprised by termination if things aren't working out.

Most business owners can tell within 90 days whether someone will succeed in the role. Use this probationary period actively. Don't wait until day 89 to decide someone isn't working out. Check in regularly, provide feedback, and make your decision with enough time to either commit to the employee or make a change.

Policies That Prevent Problems

Your offer letter should reference or include policies on issues that commonly cause workplace disputes. In 2024 and beyond, this means addressing topics that didn't exist in employment agreements a decade ago.

Use of AI tools has become a workplace issue. Will employees be using AI in their work? Are there restrictions on what company information can be input into AI systems? What are your expectations around disclosure when AI is used? These questions need answers in your policies.

Social media creates both opportunities and risks. Employees posting about your company, clients, or workplace can help or hurt your business. Clear policies about what employees can and cannot post, whether they can identify themselves as working for your company online, and how to handle confidential information on social media platforms protect everyone.

Attire and conduct standards should reflect your business environment and industry. A law firm has different expectations than a creative agency. Whatever your standards are, put them in writing so no one can claim they didn't know what was expected.

Think about issues specific to your industry too. If you're in healthcare, you need HIPAA compliance policies. If you handle financial data, you need information security policies. If employees drive company vehicles, you need policies about that. Tailor your offer letter and referenced policies to your actual business.

The Middle Ground: Performance Improvement Plans

When an employee isn't meeting expectations, you have a choice. You can fire them immediately, or you can give them an opportunity to improve through a performance improvement plan, commonly called a PIP.

A PIP serves multiple purposes. It documents specific performance problems by referencing the expectations you set in the original offer letter. It gives the employee clear standards for improvement and a timeline for meeting those standards. It shows you made a good-faith effort to help the employee succeed before terminating them.

From a legal protection standpoint, PIPs are valuable. If a terminated employee claims discrimination or wrongful termination, your documentation of performance issues and improvement efforts demonstrates legitimate, non-discriminatory reasons for the termination. Without this documentation, you're relying on memory and general impressions, which are much weaker evidence.

Not every termination requires a PIP. Serious misconduct like theft, violence, or severe policy violations warrant immediate termination. But for performance-based terminations, a PIP protects your business while giving the employee a fair chance to improve.

The Strategic Severance Agreement

Here's where many Miami business owners resist good advice. When you terminate an employee, offer a severance agreement even if you're frustrated with that employee's performance. This feels counterintuitive, especially when you're paying someone to leave after they didn't meet your expectations. But the benefits far outweigh the costs.

A properly structured severance agreement prevents the terminated employee from claiming unemployment benefits against your company. In Florida, unemployment compensation comes partly from state funds and partly from employer contributions. More unemployment claims against your business increase your unemployment tax rate for years. Even modest severance, like one or two weeks of pay, can save thousands in unemployment costs.

But severance agreements do more than prevent unemployment claims. They can include releases where the employee agrees not to sue you for wrongful termination, discrimination, harassment, or other employment-related claims. For small businesses that can't afford extended litigation, this protection is invaluable.

The Requirements for Valid Severance Agreements

Florida and federal law impose specific requirements on severance agreements, particularly those including releases of legal claims. You must give the employee adequate time to review the agreement. For employees under 40, this is generally at least a few days. For employees over 40 protected by the Age Discrimination in Employment Act, federal law requires 21 days to review the agreement and 7 days to revoke after signing.

The agreement should explicitly state that the employee was advised to consult with an attorney before signing. Even if they choose not to, this advisement is important for the agreement's validity. The severance payment must constitute valid consideration for the release. You're paying them something of value in exchange for their agreement not to pursue claims.

Never present a severance agreement as a "sign this now or get nothing" ultimatum on someone's last day. That approach creates pressure that can make the agreement vulnerable to challenge. Instead, provide the agreement, explain its terms, give the required review period, and let the employee make an informed decision.

The Complete Hiring and Firing Cycle

Think of employment relationships as having three critical phases, each requiring documentation.

The beginning establishes expectations through a detailed offer letter that specifies responsibilities, compensation, probationary period, and applicable policies. This document becomes your baseline for evaluating performance.

The middle involves performance improvement plans when expectations aren't being met. These plans reference the original offer letter, identify specific deficiencies, and provide clear standards and timelines for improvement. This documentation protects you if the relationship ends.

The end uses severance agreements to close the relationship cleanly. These agreements prevent unemployment claims, release potential legal claims, and provide a professional conclusion that reduces the risk of angry former employees damaging your reputation.

Each phase builds on the previous one. The offer letter makes PIPs possible by establishing clear standards. The PIP makes termination defensible by documenting performance issues and improvement efforts. The severance agreement makes termination clean by preventing future claims.

Common Mistakes Miami Business Owners Make

The most common mistake is skipping the offer letter entirely or using a vague one-paragraph letter that doesn't establish real expectations. Without detailed expectations in writing, you have no foundation for performance management.

Another frequent error is avoiding difficult conversations during employment. Performance issues that aren't addressed don't improve. By the time you decide to terminate, the employee may be genuinely surprised because no one ever told them their performance was inadequate. A PIP prevents this surprise and documents your efforts to help them succeed.

Many business owners also resist offering severance because it feels like rewarding failure. But severance isn't a reward. It's a business decision that costs less than the unemployment claims and potential litigation you avoid. Think of it as insurance against expensive problems.

When You Need Professional Guidance

Employment law creates significant liability exposure for businesses. Wrongful termination claims, discrimination lawsuits, wage and hour disputes, and unemployment hearings can cost tens of thousands of dollars to defend, even when you win.

Having your employment documents reviewed by a business attorney before you use them is far less expensive than defending against claims later. Standard offer letters, performance improvement plan templates, and severance agreement forms tailored to your business and compliant with Florida and federal law provide protection for every hire and termination.

Many Miami businesses benefit from ongoing general counsel services that include employment document review, guidance on termination decisions, and advice on performance management. This proactive approach prevents problems rather than just reacting to them.

Get Your Employment Documents Right

J. Muir & Associates helps Miami business owners develop employment agreements, policies, and termination procedures that protect their businesses while treating employees fairly. We work with companies throughout Florida to create documentation systems that prevent disputes and defend against claims when they arise.

Whether you're hiring your first employee or managing a growing team, having proper employment documentation isn't optional. It's essential protection for your business. Contact us today to discuss your employment law needs.

Don't wait until you're facing a claim to wish you had better documentation. Get it right from the start.

Serving business owners in Miami, Coral Gables, Doral, Miami Beach, Aventura, Pinecrest, and throughout Miami-Dade County.