When employees violate company rules, are dishonest or disloyal, or fail to perform satisfactorily, employers may wish to impose some type of punishment. Generally, employers are free to discipline employees for any reason employers consider legitimate, and are not required to prove that they had “good cause” to justify the discipline. But, employers may be liable for wrongful discipline if disciplinary action is contrary to state or federal laws, the terms of their employment contracts and/or company policies and practices. Accordingly, employers should proceed with caution in disciplining employees and make sure that certain steps are followed. The attached report describes some of the key issues with employee discipline programs and policies and includes a model form of progressive discipline policy.