Exit Interviews and Termination Best Practices to Avoid Legal Issues

When an employee leaves a business, the process of separation should be approached with care and precision. Whether the departure is voluntary or involuntary, Florida small and midsize businesses (SMBs) must handle offboarding with legal awareness and thoughtful planning. Exit interviews and lawful termination practices reduce legal risk, protect the business’s reputation, and foster a productive workplace culture. This article explores key strategies for lawful termination, the importance of effective exit interviews, and the role of severance agreements.

Lawful Termination: More Than Just At-Will

Florida is an at-will employment state, meaning that employers and employees may end the employment relationship at any time, for almost any reason. However, that flexibility does not eliminate the need for caution. Terminations that appear retaliatory, discriminatory, or arbitrary may result in claims of wrongful termination, discrimination, or breach of contract. To minimize exposure to litigation, employers should:

• Apply company policies consistently. Unequal enforcement of policies may give rise to discrimination or retaliation claims.
• Document performance issues thoroughly. Employers should maintain written records of poor performance, disciplinary actions, and any performance improvement plans.
• Review employee rights and employer obligations. These may include Consolidated Omnibus Budget Reconciliation Act (COBRA) notifications, final wage payments, bonus payouts, and accrued vacation time.
• Prepare for the termination meeting. All involved parties should agree on key messaging and have documentation ready.

The meeting should be brief, factual, and respectful. Employers should avoid making promises, veiled threats, or emotionally charged statements.

Severance Agreements: A Protective but Limited Tool

Offering a severance agreement can help protect the business from post-termination disputes. A well-drafted agreement may include compensation in exchange for a general release of claims, confidentiality obligations, and non-disparagement clauses.

However, employers should understand that such agreements have limits. Under federal law, employees cannot waive their right to file complaints with agencies like the Equal Employment Opportunity Commission (EEOC) or the Occupational Safety and Health Administration (OSHA). For example, a severance agreement cannot prohibit an employee from filing a whistleblower complaint or reporting discriminatory conduct to the EEOC.

As demonstrated in Santana v. Stuart A. Miller, Florida courts will enforce clearly worded severance agreements when they are lawfully executed and the employee has been given an opportunity to review them. In that case, the court upheld a general release signed at the termination meeting and dismissed the employee’s discrimination claim.

By contrast, Frattallone v. Black Diamond Coating, Inc. shows that severance agreements do not override federal statutes such as the Fair Labor Standards Act (FLSA), particularly when they attempt to resolve wage and retaliation claims without court or agency supervision.

Employers should consult legal counsel to ensure that any severance agreement is carefully crafted, lawfully presented, and properly executed.

Our blog, How Severance Agreements Benefit Employers in Response to Employee Claims provides more analysis of severance agreements.  

The Legal Risks of Rescinding Job Offers

While most employment in Florida is at-will, rescinding a job offer after a candidate has acted in reliance on that offer can still carry legal consequences. This is especially true when the candidate has resigned from another position or rejected other opportunities based on the offer.

Although Florida courts generally hold that at-will offers do not create enforceable promises, claims based on promissory estoppel – a legal doctrine that prevents unfair reliance – can arise. In Leonardi v. City of Hollywood, the court acknowledged that Section 90 of the Restatement (Second) of Contracts could apply to such cases, although it found the reliance in that case was not reasonable.

This area remains a gray zone, but to avoid potential liability, employers should:

• avoid making premature offers without internal approvals;
• make clear in writing that the offer is contingent on conditions such as background checks or funding; and
• refrain from encouraging a candidate to resign from other employment until all contingencies have been satisfied.

When an offer must be withdrawn, employers should notify the candidate promptly and consider offering support or limited compensation depending on the circumstances.

For more, see our blog Rescinding Job Offers in At-Will Employments in Florida.

The Value of Exit Interviews

Once an employee’s departure is confirmed, conducting an exit interview is an opportunity to reduce risk, gather feedback, and improve business practices. Exit interviews should not be confused with termination meetings. While the termination meeting formally ends the employment relationship, the exit interview offers a chance to reflect on the experience and close the loop professionally.

Exit interviews should be:

• conducted by a neutral party, such as HR or an external vendor;
• scheduled in advance to allow for preparation;
• framed as confidential and optional, and 
• guided by a flexible but consistent set of open-ended questions.

Topics may include reasons for leaving, opinions on management and culture, satisfaction with compensation and benefits, and suggestions for improvement. These meetings are also a final opportunity to reiterate ongoing obligations regarding confidentiality, trade secrets, and non-solicitation.

Importantly, if an employee shares concerns that hint at discrimination, harassment, or unsafe working conditions, employers must take that information seriously. Failure to investigate such feedback could expose the company to future claims.

Avoiding Common Mistakes

Many employers lose the benefit of the offboarding process by making avoidable errors. These include:

• relying on online questionnaires instead of conducting live interviews;
• involving direct supervisors in exit interviews, which can suppress honest feedback;
• failing to act on issues raised during interviews;
• making severance or benefits conditional on participation in an exit interview; and
• treating all exit interviews the same, regardless of the employee’s role or influence.

Each of these missteps undermines the protective value of the exit interview process and may erode trust among current and former employees.

Conclusion: From Exit to Opportunity

The offboarding process is not just a legal safeguard – it is also a strategic opportunity to reinforce company values, leave a strong final impression, and gather insights that support employee retention. When handled with consistency, discretion, and legal guidance, offboarding can help reduce risk and support a more resilient, well-managed workplace. When former employees feel heard and respected, they are more likely to speak positively about your business – or even return one day as a rehire. Jimerson Birr helps Florida SMBs build legally sound exit practices that minimize risk and protect business continuity. From termination planning to severance agreements, our team provides the support you need at every step. Contact us to schedule a consultation with our employment law team.