How Florida Businesses Should Respond to a Demand Letter From a Former Employee

A demand letter from a former employee has a way of landing on your desk at the worst possible time. Maybe it alleges unpaid wages. Maybe it claims discrimination or retaliation. Whatever the substance, the letter is doing exactly what it is designed to do: getting your attention before a lawsuit is filed. How your business responds in the days that follow can shape the entire course of the dispute.

Do Not Ignore It, and Do Not Respond Alone

Ignoring a demand letter rarely makes the underlying problem go away. In many cases it simply signals to the former employee’s attorney that litigation is the only path forward. At the same time, a rushed or emotional response, especially one sent directly by a manager or owner without legal review, can hand the other side language to use later. The safest first move is to route the letter to counsel before anyone on your team replies in writing or picks up the phone.

Understand What Deadlines May Already Be Running

If the demand letter references discrimination, harassment, or retaliation, there is a good chance the former employee is also required to pursue an administrative step before filing suit. Under Section 760.11 of the Florida Statutes, a person alleging a violation of the Florida Civil Rights Act generally must file a complaint with the Florida Commission on Human Relations within 365 days of the alleged violation. Understanding where the employee’s claim sits in that timeline can tell you a lot about how much runway you have to investigate internally and gather documentation before litigation becomes likely.

Preserve Records Immediately

Once a demand letter arrives, your business has a legal obligation to preserve relevant records, including emails, personnel files, performance reviews, and any internal complaints related to the former employee. Routine deletion policies that would normally apply to old emails or files need to be paused for anything connected to this individual’s employment. Failing to preserve evidence can create serious problems later, even if your underlying position is strong.

Should You Try to Resolve It Directly?

Some demand letters are opening offers for a reasonable settlement discussion. Others are the first step toward a lawsuit regardless of how the business responds. How do you tell the difference? Look at the tone and specificity of the letter, whether it cites particular statutes or policies, and whether the amount demanded seems tied to an actual calculation of damages or feels more like a starting number in a negotiation. An attorney who handles these disputes regularly can often read those signals faster than an in-house team that only sees this kind of letter once every few years.

Every demand letter deserves a measured, well-documented response, not a reflexive one. Our West Palm Beach employment law lawyers work with Florida businesses to evaluate these letters, protect the company’s records and position, and craft a response that limits exposure. If a former employee has sent your business a demand letter, we encourage you to contact Pike & Lustig, LLP before the deadline in that letter arrives.

Source:

flsenate.gov/Laws/Statutes/2025/760.11