The legal definition of wrongful termination is quite specific. Wrongful discharge requires that your employer fire you for an illegal reason. This could involve a violation of federal anti-discrimination laws or a contractual breach.
For instance, a company cannot fire an employee because of race, gender, ethnic background, religion, or disability. It is also illegal to fire someone because they lodged a complaint against their employer or acted as a whistleblower.
Such adverse actions are retaliation and are unlawful. This section explains the meaning of at-will employment and also describes how to determine if you have an implied employment contract. In addition, this article discusses the elements of wrongful termination and how to file a claim against your employer.
At-Will Employment
Every state but Montana has at-will employment. This means two things:
- Your employer can fire you at any time, for any or no reason.
- You can quit your job anytime and for any reason.
At-will employers may fire at their discretion. For example, an employer may fire an employee for violating a policy in the employee handbook or for consistently being late. Neither of these would be examples of wrongful termination.
An exception to this rule is that your employer cannot fire you for an illegal reason. For example, it's illegal to terminate someone:
If your employment lawyer can prove that your employer fired you out of racial intolerance or a culture of sexism, you can file a wrongful termination case.
Do You Have an Employment Contract?
One of the first things your labor law attorney will ask is whether you signed a contract with your employer. The agreement must outline your duties, responsibilities, and benefits of employment. If this is the case, your employer must honor the contract terms.
A written contract that suggests job security could mean the job is not at will. For example, if your agreement has a start and end date, you can claim a breach of contract if you lose your job before the end date. Likewise, if the contract states that the company may only fire you if you fail to meet specific benchmarks, you cannot be let go for any other reason.
If you don't have a written employment contract, your employer may still have certain obligations created through verbal promises. Terminated employees may also be able to show that their firing violated an oral or implied promise. For example, a court may find that an implied contract existed if an employer made verbal promises of continued employment or specific termination procedures. Courts will look at factors including:
- Duration of a worker's employment
- Regularity of promotions
- Oral or written assurances made to the employee
- The employer's typical practices and patterns of behavior
It may also be impermissible to fire an employee in violation of a company's specific discipline or termination policy. For example, suppose an employee handbook lists specific discipline procedures, like requiring a certain number of warnings before termination. In that case, the employer may be bound to follow those procedures even when employment is otherwise at-will.
Discrimination and Job Loss
Many wrongful termination lawsuits involve discrimination based on:
- Race or color
- National origin
- Sex
- Religion
- Disability
- Pregnancy
- Age
Federal and state laws protect employees who fall into these protected classes. Some of these laws include protection for sexual orientation and gender identity.
In California, if a company fires an employee for being transgender, the employer can file an employment discrimination case. This is because California law protects LGBTQ+ workers.
If your employment law attorney can demonstrate that your employer fired you for discriminatory reasons, you should file a complaint with the federal Equal Employment Opportunity Commission (EEOC). Act quickly if you've been wrongfully terminated for discriminatory reasons—claims are subject to strict time limits.
Retaliation and Wrongful Termination
An employer cannot punish or fire you for engaging in certain protected activities. For example, you can inform your employer about sexual harassment. You're also allowed to try to form a labor union.
If you lose your job for doing this, it may qualify as retaliation.
Other protected activities include the following:
Federal and most state laws prohibit employers from retaliating against employees who report suspected legal violations through whistleblower protections. For instance, an employee who informs the Environmental Protection Agency (EPA) that their employer is dumping toxic waste into a local watershed has protection under whistleblower laws at the federal level.
Similarly, many states prevent employers from terminating employees in violation of public policy. In such public policy cases, an employer can't retaliate against a worker for taking time off to vote, sit on a jury, or serve in the military or national guard.
Legal Help is Available if You've Been Wrongfully Terminated
Unless you live in Montana, you must accept your employment at will. But you still have employee rights, and not all employers follow the law.
If you believe you've been wrongfully terminated, you may be entitled back pay, reinstatement, compensatory damages, and other relief (including punitive damages). A wrongful termination lawyer can help you understand the laws in your area and what options are available to you. They will help you review your legal rights and guide you through your wrongful termination case with experienced legal advice.
Contact a qualified employment law attorney in your area to discuss your circumstances and review your wrongful termination claim. A wrongful termination lawsuit may be the only way for you to get damages for your wrongful termination.
