I'm often accused of being a contrarian about certain employment law issues. I believe an employer's own documentation of employee performance (termination notices, reason for termination forms sent in for unemployment, disciplinary write ups) create significant obstacles in defending discrimination law suits.
Its not that it is inherently difficult to to document reasons for discharge, although laziness and ineptitude often result in incomplete or erroneous documentation. There are also so many ways in which judges have expanded the options for defendant employers, that the creator of the documentation needs a sophisticated understanding of employment law in order to avoid circumscribing options for defending a claim of discrimination. Most employers lack such expertise in house. I believe it is better to have no documentation of the basis for discharge in an at will context, than to have poorly thought out documentation. Poorly implemented documentation is far more prevalent than employers realize. Of course, the absence of documentation where it is illogical not to have documentation is a problem. Time records for hourly employees is one example. But time records for salaried/exempt employees is another matter. Many organizations do not keep such records. Ultimately the issue is whether the decision maker intended to discriminate when making the decision being litigated. An employer's documentation which contradicts the testimony of the decision maker remains one of the most significant problems in defending a claim.