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Federal law protects applicants who belong to the military reserves from discrimination based on their service, and considering their military obligations when making hiring decisions is illegal. If anyone involved in hiring expresses reluctance to hire a candidate because of his or her service, expect legal trouble. Make absolutely sure you had valid reasons for picking other candidates.
Sometimes, employees hold back on reporting sexual harassment out of fear, especially if the perpetrator is a supervisor. The first you hear about it may be during the termination meeting. If that happens, suspend the employee instead of firing him. That will give you time to investigate.
Could you explain to a court exactly when you decided to fire an employee? If not, you need a system for tracking your decision-making process. That can be invaluable, as this case shows.