If you are in business long enough, chances are that you’ll eventually be involved in at least one benefits-related legal dispute with an ex-employee.

The good news: There are ways to avoid common mistakes that get in the way of resolving disputes quickly. Even if you are sued, taking these three steps can keep things from going from bad to worse:

1. Focus on a narrow time period

Companies open the door for trouble when a poor-performing employee is given a raise or bonus – and then fired shortly thereafter.  Huge red flag: Employees who are terminated shortly after a dispute over paid leave or disability.

In many cases, the employers can’t fall back on a history of poor performance reviews. The problems are often more recent in nature.

Best practice: In performance reviews, supervisors should focus the documentation only on the time period the review covers – and not anything earlier. If an issue’s taken to court it may look like the employer’s retaliating against the employee for taking leave or claiming a disability.

2. Follow up promptly

It’s dangerous to terminate someone shortly after he or she has filed a complaint.  If an employee’s made a written or verbal complaint shortly before being fired, the employer is vulnerable to retaliation lawsuits.

Timing’s of the essence when it comes to following up on complaints. An investigation that’s started within a day or two of a complaint shows that the firm took the issue seriously.

3. Abide by plan documents

Sometimes the first time you’ll hear about a benefits or pay-related complaint is after the employ files a claim with the DOL or EEOC.

Emotions usually run high when this happens. But it’s crucial to follow to the letter the investigation and dispute-resolution procedures spelled out in your plan documents.  Failure to do so almost always puts the company in legal jeopardy.

The result is almost always a court case or an expensive settlement – even if the company was in the right. Reason: Under ERISA, the only thing that’s worse than deviating from plan documents is not having written dispute-resolution procedures at all.