What to Do When an Employee Causes Problems in Your Florida Business

If you’re wondering what to do when an employee causes problems at my business, start by writing down the facts. Most employee problems fall into a few groups: departures, theft, misconduct, performance, terminations, internal complaints, and outside claims. Each group raises different legal questions and calls for different first steps. This page gives general information for business owners in Florida. It is not legal advice, and every situation turns on its own facts.

What Counts as an Employee Problem for a Florida Business Owner

An employee problem is any situation where a worker’s conduct, performance, or exit creates legal or financial risk for your company.

Some problems are obvious, like missing cash from the register. Others build slowly, like a manager who keeps missing deadlines or a worker who keeps raising the same complaint. Either kind can end up before a court or a government agency if it’s handled poorly.

The first decision is usually about documentation, not the final result. Before you discipline, fire, or sue, you need a clear record. Write down what happened, when, who saw it, and what your written policy says. Labels like “bad attitude” rarely help on their own.

Headcount also matters. Some employment laws apply only to employers above a certain size, so confirm yours before you assume a rule covers you. A later section explains that threshold.

This guide walks through each category in order. For employer-side questions, KEW Legal’s employment law attorney for employers practice area covers these issues in more depth. Knowing what to do when an employee causes problems at my business is easier once you’ve sorted the problem into a category.

Employee Departures: Resignations, Notice, and Business Continuity

After a resignation, confirm the terms in writing and protect what the departing worker can take with them.

Start with the basics. Get the resignation in writing, including the last day worked. Check the employment agreement or handbook for any notice period it requires. Calculate final pay carefully and keep proof of when you paid it.

Next, collect company property. Laptops, keys, badges, phones, files, and login details should come back. Then cut off access to email, cloud folders, and client accounts. Doing this on the last day is a sound step.

The bigger risk is what leaves with the employee. A departing salesperson may know your pricing, client contacts, and pending deals. A developer may hold code or project files. Unfinished work can stall without a handoff plan.

Good transition planning helps. Write down who owns each client, vendor, and project. Ask the worker to document open items before the last day, and keep copies in your files.

Departures can also affect shared or contracted relationships. If a key vendor depends on one person, the business contract and vendor dispute attorney and partnership dispute attorney practice areas may be relevant.

Theft, Fraud, and Misuse of Company Property

When you suspect theft or fraud, preserve evidence and limit access before you confront the employee.

Common problems include missing cash or inventory, padded expense reports, payroll manipulation, unauthorized use of company accounts, and misuse of equipment or customer data. These patterns often surface in reconciliations rather than in one dramatic moment.

Early steps matter. Save the records you already have, such as bank statements, point-of-sale logs, timesheets, and emails. Restrict the employee’s access to the systems involved. Avoid accusing anyone in front of coworkers, because a careless comment can create a separate dispute.

Criminal reporting and civil recovery are separate paths. A police report may lead to a criminal case. A civil claim seeks to recover money or property. Each path has its own steps and evidence needs, and a choice on one can affect the other.

Controls help prevent repeats. Dual approval for payments, regular reconciliations, and limited system access are common examples. Outside general counsel for businesses can review these controls as part of ongoing advice.

Misconduct, Performance, and Attendance Problems

Misconduct and performance problems need different responses, and both need consistent written records.

Misconduct means a serious rule violation, such as harassment, dishonesty, violence, or a serious policy breach. Performance problems involve work quality, speed, or skill. Attendance problems involve lateness or repeated absences. The category affects how you document the issue and how you respond.

For performance and attendance issues, a written warning and a clear improvement plan are common tools. The plan should name the standard, the timeline to meet it, and the support the company will provide. A signed acknowledgment shows the employee received it.

Consistency counts. If one employee breaks a rule without consequence and another is fired for the same conduct, that gap can be used against you later. Apply policy the same way across similar cases. Write down the reason for any different treatment.

Some problems overlap with complaints about coworkers, which deserve a careful, documented response. The related guide on responding to an employee complaint about another employee covers those scenarios.

Terminating an Employee in Florida: At-Will Employment and Its Limits

An employer can end employment for many business reasons, but not for a reason the law prohibits.

Termination is where many employee problems become legal disputes. The at-will label doesn’t protect a termination made for an unlawful reason. Florida law makes it unlawful to discharge someone because of race, color, religion, sex, pregnancy, national origin, age, handicap, or marital status. See the Florida unlawful employment practices statute.

Retaliation is a separate risk. Florida law bars retaliation against an employee who objects to a practice that violates a law, rule, or regulation. See the Florida whistleblower prohibitions.

Timing matters. A termination that follows a complaint, a leave request, or a wage question draws close scrutiny, even when the business has a valid reason. A documented, consistent reason and a reviewed separation process give you a clearer record.

Check contracts before any termination meeting. An employment agreement, a collective agreement, or a written policy can add steps or limits. Review these first.

Internal Complaints Between Employees and Harassment Allegations

When an employee complains about a coworker, take the complaint seriously and look into it under your own policy.

Many employers have a written complaint policy. Follow it. Even without one, a complaint about harassment or discrimination signals a need to act. Brushing it off can make the problem worse.

A basic investigation has five parts: intake, interviews, document review, findings, and communication. Intake means writing the complaint down in the complainant’s own words. Interviews should cover the allegation, the response, and any witnesses. Document review means gathering emails, texts, schedules, and prior complaints.

Interim steps can protect everyone during the review. Adjusting schedules or reporting lines may help, as long as the change doesn’t penalize the person who complained. Retaliation against that person is a separate problem with its own risks.

Findings should follow the evidence. Write a short summary of what you found, what you decided, and why. Share the outcome with the people involved, and limit private details to what’s needed.

An early legal review can help you set the scope and order of steps before interviews begin.

Discrimination, Wage, and Retaliation Claims Against Employers

Claims against an employer usually arrive as agency charges, demand letters, or lawsuits, and each stage has its own deadline.

Florida’s civil rights law covers an employer with 15 or more employees for each working day in 20 or more calendar weeks in the current or preceding calendar year. See the Florida civil rights definitions. Check your headcount against that test, since a business near the line can fall on either side depending on the period counted.

In a civil action under that law, a court may award back pay and compensatory damages, including for mental anguish and loss of dignity. Punitive damages are also possible, but the total under that section can’t exceed $100,000. See the Florida civil remedies statute.

Florida whistleblower claims run on their own clock. The suit window is the earlier of two years after discovering the retaliatory action or four years after it was taken. See the Florida whistleblower remedies.

Federal wage claims have their own limits. A suit for unpaid minimum wage or overtime generally must begin within two years after the claim arose, or within three years for a willful violation. See the federal wage claim deadlines.

Salary alone doesn’t make a worker exempt from overtime. Whether an employee can properly be classified as exempt from overtime is a question worth reviewing carefully. That review looks at both how the employee is paid and the duties the role actually involves. See the federal overtime salary rules.

Federal agency charges have a separate clock. Discrimination complaints can be subject to filing deadlines, so employers benefit from keeping employment records organized from the start. See the federal charge filing deadlines. Because deadlines differ, act by the earliest one that could apply. A matter may be referred to another lawyer or firm where that fits better.

Non-Competes, Restrictive Covenants, and Protecting Confidential Information

A non-compete in Florida must be in a signed writing and tied to a legitimate business interest before a court will enforce it.

The Florida restrictive covenant statute says a court won’t enforce a restriction unless it’s in a writing signed by the person it binds. The business seeking enforcement must also prove a legitimate business interest. Those interests include trade secrets, valuable confidential information, and substantial customer relationships. A restriction without one is void and unenforceable.

Even a valid restriction can be narrowed. If it’s overbroad, overlong, or otherwise not reasonably necessary, the court must modify it and grant only the relief needed to protect the interest. Don’t assume a broad clause will be enforced as written.

These tools do different jobs. A non-compete limits working for a competitor. A non-solicitation clause limits contacting customers or staff. A confidentiality agreement protects information. Each needs its own drafting.

Before a departure, identify what’s confidential: customer lists, pricing, formulas, and internal processes. Limit access, label sensitive files, and get signed agreements in place. Information that isn’t handled with reasonable secrecy measures can lose protection. Where covenants are tied to a sale, the business acquisition and sale attorney practice area is relevant.

Documentation, Employee Handbooks, and First Internal Steps

Your first internal step is a dated written record of what happened, what you did, and who knows about it.

Keep these records:

• Dated notes on each incident, written while the facts are fresh
• Names of witnesses and how to reach them
• Copies of written policies and any updates
• Signed handbook acknowledgments
• Emails, texts, and messages tied to the issue
• Prior warnings, reviews, and attendance logs
• Pay and schedule records

A current handbook with signed acknowledgments shows employees received the rules. Without signed proof, enforcing a rule becomes harder. Review your policies on conduct, complaints, attendance, confidentiality, and company property.

Before you speak to an employee, a client, or the public about a problem, review what you plan to say. A casual remark can become evidence in a later dispute.

Early legal review can clarify which steps fit the facts. It doesn’t promise any particular result, and some problems carry deadlines that matter early.

Outside General Counsel for Businesses and How Costs Are Discussed

Outside general counsel is an ongoing advisory relationship that covers a business’s legal questions within an agreed scope.

Instead of hiring a lawyer for one dispute at a time, some businesses use outside general counsel for recurring questions. KEW Legal describes that scope as covering contracts, employment matters, commercial leases, and business decisions. The scope is set with each client rather than assumed.

Costs depend on the matter. The scope, the stage of the problem, and whether litigation or an agency charge is involved all affect the work needed. Ask for the fee arrangement in writing before work starts.

Any fee the firm discusses will be confirmed in writing and will list every cost the client may owe, such as filing or third-party fees.

Ongoing advice also helps owners plan before problems arise. It can cover contract terms, policy updates, and the questions that come up as the business grows.

Where KEW Legal Works: Coral Gables, Sunny Isles Beach, and Surrounding Areas

KEW Legal has offices in Coral Gables and Sunny Isles Beach, Florida, and serves business owners across South Florida.

The firm’s offices are in Coral Gables and Sunny Isles Beach. KEW Legal serves business owners in Miami, Miami-Dade County, Aventura, Doral, Brickell, Fort Lauderdale, and Broward County.

Attorneys at KEW Legal practice Florida law. KEW Legal is responsible for the content of this page, which is general information and not legal advice. Some matters may be referred to another lawyer or firm where appropriate.

Frequently Asked Questions

What should I do when an employee causes problems at my business? Write down the facts, dates, and witnesses first. Then review your written policies before you take action.

Can I fire an employee who complained about harassment? Not for an unlawful reason. Florida law bars retaliation against an employee who objects to a practice that violates a law, rule, or regulation.

Does a Florida non-compete need to be in writing? Yes. A court won’t enforce a restrictive covenant unless it’s in a writing signed by the person it binds.

If a resignation, missing funds, or a termination decision has you stuck, you don’t have to sort it out alone. Call 305-990-2300 or send us a message, and we can talk through your facts with you.