Dealing with a Non-Compliant Employee: Listen First, Then Act

For many business owners and managers, few responsibilities feel more uncomfortable than disciplining — or potentially terminating — an employee. When an employee refuses to follow policies, procedures, or reasonable instructions, the instinct is often to “get to the bottom of it” before moving toward formal discipline or termination. That instinct is usually right. Addressing non-compliance effectively requires both clarity and empathy.

This article outlines practical steps for understanding what’s driving the behavior, how to respond, and when it may be appropriate to set firm consequences — including termination — under Colorado’s at-will employment framework.

Start by Understanding the Issue

Non-compliance almost always has a reason behind it. You may or may not agree with that reason, but you should understand it — and you should hear it directly from the employee. Avoid relying solely on second-hand information from supervisors or coworkers; doing so can distort the facts and leave the employee feeling unheard.

Schedule a private conversation and ask open-ended, factual questions:

• “Help me understand what’s getting in the way of following this policy.”

• “Is there something about the process that doesn’t make sense or feels unworkable?”

• “Is there anything happening that I may not be aware of?”

Listen without interrupting, reflect what you’ve heard, and confirm that the employee feels understood. Only after that foundation is built can you fairly evaluate next steps.

Use the Right Type of Motivation

If the employee’s explanation does not justify the non-compliant behavior — but the employee is otherwise valuable — consider whether coaching or motivation may help. Different people respond to different incentives:

• Positive motivators (clarity about growth, trust, recognition, workload support)

• Accountability-based motivators (clear expectations, deadlines, performance visibility)

Avoid vague statements such as “you really need to do better.” Instead, define the behavior expected, why it matters to the organization, and how you will measure follow-through.

Document the conversation, expectations, and timeline for improvement.

When It’s Time to Set Firm Expectations

After listening and clarifying expectations, there may be situations where continued non-compliance cannot be tolerated. In those cases, it is appropriate to clearly state that compliance is required as a condition of employment.

Management expert Alison Green recommends setting expectations plainly and noting that failure to comply may jeopardize the employee’s job. The goal is clarity, not threat — the employee should fully understand the seriousness of the situation and what will happen if behavior does not change.

Provide:

• A specific expectation

• A reasonable time frame

• The consequences of further non-compliance

• Written documentation of the conversation

A Note on Colorado’s At-Will Employment

Colorado follows the doctrine of employment-at-will. In general, this means that — in the absence of a contract or other legal protections to the contrary — either the employer or employee may terminate the employment relationship at any time, with or without notice.

However, termination cannot be for an unlawful reason, such as discrimination, retaliation, or other protected-class or protected-activity violations. Even when termination is legally allowed, employers should still:

• Document performance and behavior issues

• Apply policies consistently

• Follow any written procedures in handbooks or contracts

• Seek legal guidance in uncertain situations

Proper documentation can be especially important if the employee later disputes the termination.

Laws and regulations evolve over time. Before taking disciplinary or termination action, consult a Colorado employment attorney to ensure your approach complies with current state and federal law and with your specific business circumstances.

Get Guidance Before You Act

If you are dealing with a non-compliant employee and want to better understand your responsibilities, risks, and options under Colorado law, I can help. Contact me, Elizabeth Lewis, at the Law Office of E.C. Lewis, P.C., your Denver Small Business Attorney.