Not legal advice. Employment law is state-specific and fact-specific. Consult a licensed employment attorney before acting on any termination.
Founder HR · General management guidance

Hire / Terminate Decision Helper

Role economics for the hire; a documentation and timing-risk checklist for the exit. All computation happens in your browser — nothing about the person or the role is stored unless you save it.

Role economics

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Honest limits — and a hard line: This is GENERAL MANAGEMENT GUIDANCE ONLY, NOT LEGAL ADVICE, and no attorney-client relationship is created by using it. Employment law is state-specific and fact-specific: final-pay deadlines, mini-WARN thresholds, protected-class definitions, and at-will exceptions all vary by state, and the tool encodes none of your state's specifics. The hire-mode load factor (1.25–1.4×) is a management convention, not a computed fact. If any risk flag fires — or you are unsure whether one should — consult a licensed employment attorney before acting. Unfolding Values is not a law firm. For the business side of the decision: Reach out.
What this tool does NOT do:
  • Give legal advice, assess the merits of any claim, or substitute for employment counsel
  • Your state's final-pay rule, mini-WARN thresholds, or leave laws — it points at them and stops
  • Contractor-vs-employee classification (ABC tests, IRS factors) — a legal question with real penalties
  • Severance economics, OWBPA-compliant release drafting, or separation-agreement terms
  • Immigration consequences of a termination (visa-dependent employees)
  • The retaliation analysis itself — it flags timing, counsel weighs the facts

Hire, contract, or wait — and how to exit without creating a claim

The hire decision and the termination decision are both economics problems wrapped in risk problems, and small companies routinely get the wrap wrong. On the hiring side, the number that matters is the fully-loaded cost — payroll taxes, benefits, tooling, recruiting, and the management time the role consumes — measured against what the role actually adds: revenue, capacity, or risk reduction. For a company watching runway, every hire is also a burn decision: a role that pencils out on annual numbers can still be wrong if it takes three months of runway with it. Sometimes the honest answer is a contractor for a season, or waiting a quarter; this helper's HIRE mode runs those comparisons side by side and recommends hire, contract, or wait.

The termination side is where informality gets expensive. TERMINATE mode builds a documentation checklist — expectations set, issues recorded with dates, warnings given, consistency with how similar situations were handled — and screens for the risk flags that should always trigger a call to employment counsel before action: timing close to protected activity, potential protected-class optics, group terminations that may approach federal or state WARN thresholds, and state-specific final-pay deadlines that in some states run as fast as the last day worked. When any flag fires, the tool says so plainly and gates its checklist behind the recommendation to get counsel involved.

This is general management guidance, not legal advice — employment law is state-specific and fact-specific, and no calculator substitutes for counsel on a contested exit. What the tool does provide is structure: the economics made explicit before a hire, and the documentation and timing questions asked before an exit, while there is still time to fix what is missing. Everything runs in your browser; nothing about the person or the role is stored unless you save it.

Frequently asked questions

What does a new hire actually cost beyond salary?

The fully-loaded cost typically includes employer payroll taxes, benefits, equipment, software seats, recruiting fees, and management overhead — commonly 1.25x to 1.4x base salary for US employees. Comparing that number, not the salary, against expected revenue or capacity impact is what makes the hire-versus-contract decision honest.

When does hiring a contractor beat hiring an employee?

When the need is genuinely temporary, the skill is specialized, or runway is short enough that a fixed commitment is risky. The tool compares fully-loaded employee cost against contractor cost for the same capacity — but classification itself is a legal question with state-specific tests, so confirm it with counsel.

What documentation should exist before any termination?

A record of expectations communicated, specific performance or conduct issues with dates, prior warnings or improvement plans, and consistent treatment relative to similarly situated employees. Gaps in any of these are the classic inputs to wrongful-termination exposure.

Why does termination timing matter?

A termination shortly after a protected activity — a complaint, a leave request, a workers' compensation claim — invites a retaliation claim regardless of the true reason. The tool flags timing risk so you can involve employment counsel before acting, not after.

When does the WARN Act apply?

The federal WARN Act generally covers employers with 100 or more employees and requires 60 days' notice for mass layoffs and plant closings meeting its thresholds. Several states have mini-WARN acts with lower triggers — group terminations need a counsel review before announcement.