Removal of Kroger CEO Shows How Even Misconduct Outside Work Can Be Costly

It’s natural to assume that once you leave your place of employment for the day, or when you log off if you’re a remote worker, that your time is your own. While you might be free to enjoy leisure activities, there can be situations where your employer takes action against you for something that occurred off the clock. The prevalence of social media can make it especially difficult to shield something from view. 

Top executives who are publicly associated with their employer should be particularly careful about private behavior. This principle was recently highlighted by the resignation of Kroger CEO Rodney McMullen, who left the company immediately following an investigation into activity that apparently did not relate to his duties as head of the large grocery chain.

Last month, Kroger announced that it had been “made aware of certain personal conduct” involving McMullen. The company’s board launched an investigation, which concluded that his behavior was “inconsistent” with Kroger’s ethics policies. While the company did not disclose specific details about the misconduct, it clarified that the issue was not connected to the company’s financial performance, operations or reporting, and did not involve any workplace associates.

Texas and other states have “at will” employment laws that give businesses wide berth to terminate workers for nearly any reason, or no reason at all, so long as the dismissal is not the result of illegal discrimination or retaliation. Some employees also work pursuant to a contract that might limit their employer’s ability to terminate them. Typically, a top executive such as McMullen would have an employment agreement that includes “for-cause” termination clauses that enables their company to dismiss them, possibly without severance benefits, for personal misconduct.

For-cause language often covers a broad range of behaviors, including violations of company ethics policies, criminal activity or conduct that could harm the company’s reputation. These provisions are designed to protect the company from the fallout of an executive’s actions, ensuring that leadership aligns with the organization’s values and standards. However, there are instances where a business attempts to allege some form of misconduct without factual basis in order to avoid their contractual obligations.

Whether you’re a C-suite executive or not, if you believe your dismissal might not be legally valid, Kardell Law Group can help. Our attorneys offer knowledgeable advice and determined advocacy to employees in a wide range of wrongful termination cases.