Dupont Fish Sellers Inc. discovered that an employee has been taking home a small filet of haddock after each shift, without permission. The employee admitted to this conduct and promises to stop. The employer does not want to fire this employee, but it wants to ensure that the conduct does not continue.

1. What is the concept called in which employers impose discipline in a series of increasingly more severe steps?
2. What are some of the disciplinary options available to the employer? and,
3. If the employer decided to suspend the employee without pay, what type of lawsuit could the employee bring against the Employer?