In the world of business , I’ve seen countless entrepreneurs and executives make decisions that were technically legal but strategically disastrous. The phrase “just because you can doesn’t mean you should” isn’t just philosophical wisdom—it’s practical business advice that can save your company from costly mistakes, damaged relationships, and long-term reputation harm. Too many business owners confuse what’s legally permissible with what’s actually smart, and this confusion often leads to decisions that pass the legal test but fail the common sense examination.
Employment law provides some of the clearest examples of this principle in action. Yes, you can terminate an at-will employee for almost any reason that isn’t specifically prohibited by law. But firing someone right after they return from medical leave, even if technically legal, sends a chilling message to your entire workforce and may trigger expensive investigations or wrongful termination claims. Similarly, you might have the contractual right to implement harsh disciplinary measures or slash benefits during tough times, but exercising these rights without considering the broader impact on morale and retention often creates problems that far outweigh any short-term savings.
The intersection of legal compliance and practical wisdom becomes particularly critical when dealing with workplace policies and procedures. Many companies create employee handbooks that technically meet legal requirements but read like legal documents rather than communication tools. Just because you can include every possible disclaimer and restriction doesn’t mean you should create policies so rigid and punitive that they discourage the very behaviors you want to promote. Smart business owners understand that policies should guide positive outcomes, not simply protect against lawsuits.
Consider the common scenario of non-compete agreements and confidentiality provisions. While these contracts might be enforceable in your jurisdiction, slapping overly broad restrictions on every employee, including entry-level workers who have no access to trade secrets, often backfires. Such aggressive approaches can hurt your ability to attract talent, damage your reputation in the industry, and even invite legal challenges from employees or competitors who view your tactics as overreaching. The most successful companies I work with use these tools strategically, applying them only where truly necessary and crafting them reasonably.
The bottom line is that good business judgment requires looking beyond what’s legally possible to what’s practically wise. Before making any significant employment decision, ask yourself not just whether you have the legal right to do something, but whether doing it serves your long-term business interests. Consider the message you’re sending to current and future employees, the potential for unintended consequences, and whether there might be a better approach that achieves your goals without creating unnecessary risks. In business law, as in life, the most powerful tool in your arsenal is often restraint—knowing when not to exercise the full extent of your legal rights in service of building a stronger, more sustainable business.
