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You may unknowingly break the law each time you fire or lay off an employee. That’s because there are several state and federal laws that employers must follow when they terminate an employee. These laws involve a lot of paperwork, especially if the terminated employee participated in a group health insurance plan. Owners may be unaware of these laws or unsure of their requirements. But it’s important to be aware of these laws because owners can get hit with hefty fines and even lawsuits if owners fail to comply.