The author addresses the labor law consequences of employee violations of compliance and ethics guidelines. She first examines the implementation of effective compliance and ethics guidelines with sanction clauses, as well as the detection and clarification of violations of behavioral rules. This is followed by an analysis of the response and sanction options available to the employer. These are divided into two groups: the response options available to the employer by law that affect the existence or content of the employment relationship, such as warnings, termination, and damages, and the response options that arise only from a special agreement, such as contractual penalties and company fines.