Sometimes, you don’t know how lousy an employee was until he or she is gone. That may be when you find out about missing work, or even missing money. Or you may discover that the employee was essentially dishonest. If that’s the fact, promptly document what you discovered—just in case there is a later lawsuit.

Employees who sue for discrimination usually have to show they were punished more harshly than other employees outside their protected class. Counter such claims with specifics. While you may have punished 10 employees this year for breaking the same rule, chances are that each case was unique—and that you made the punishment fit the crime. That’s fine.

Like many municipalities, the city of Latrobe is struggling with falling revenue. City Manager Rick Stadler attempted to address the city’s shortfall by eliminating six clerical positions, while the Office of City Administration cut two staffers. Now all eight employees have requested an EEOC probe into the terminations to determine if they violated anti-discrimination laws.

When the borough of Netcong implemented a reduction in force, 28-year employee Delores Colabella was the only employee whose position was eliminated. Colabella suspected her termination might have something to do with her age. She’s 72. Now she is suing the borough for age discrimination.

Some employers don’t necessarily want to confront an employee directly when they suspect that he may be engaged in illegal activity. The threat of violent reprisal is very real. If you fire the employee, he may sue, alleging some form of discrimination. But if you have documented why you did what you did, chances are the lawsuit will be dismissed.

California lawmakers—and courts—don’t like noncompete agreements because they limit employee mobility and career growth. Most employers understand that they can’t enforce such agreements if an employee leaves. But what about an informal “gentlemen’s agreement” between competitors to refrain from hiring employees who signed agreements?