{"id":4797,"date":"2016-04-04T10:47:45","date_gmt":"2016-04-04T15:47:45","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/smallbusiness\/employment-law-and-human-resources\/wrongful-termination-laws-illegal-reasons.html"},"modified":"2026-09-08T09:51:25","modified_gmt":"2026-09-08T14:51:25","slug":"wrongful-termination-laws-illegal-reasons","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/wrongful-termination-laws-illegal-reasons.html","title":{"rendered":"Wrongful Termination: When Is It Illegal To Fire an Employee?"},"content":{"rendered":"\n
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Wrongful Termination: When Is It Illegal To Fire an Employee?<\/h1>\n\n
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\n By Catherine Hodder, Esq.<\/a> | Legally reviewed by Laura Temme, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Wrongful termination<\/span> is the firing of an employee for an illegal reason<\/span> that violates federal or state law. While most U.S. employment is “at-will,” meaning an employer can fire an employee for almost any reason or no reason at all, there are critical exceptions. Employers cannot terminate someone for discriminatory reasons, in retaliation<\/span> for legally protected activities<\/span>, or in violation of an employment contract<\/span> or public policy. Understanding these illegal grounds for termination is crucial for protecting your business from costly lawsuits.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n

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Wrongful termination<\/span> laws apply to all employees, regardless of the business size. Firing employees for improper reasons violates state and federal laws and may lead to penalties or wrongful termination<\/span> lawsuits.<\/p>\n

In this article, we\u2019ll explain when firing someone shifts from a permissible business decision to a potential lawsuit. If you run a business and have concerns about a specific employee or your overall termination policy, having an employment law<\/span> attorney<\/a> on your side reduces the risk of wrongful termination<\/span> claims<\/span><\/a>.<\/p>\n

Exceptions to At-Will Employment<\/span><\/h2>\n

Most workers in the U.S. are at-will employees<\/a>. In at-will employment<\/span>, either the employer or the employee can end the working relationship without cause for any legal <\/em>reason.<\/p>\n

While at-will employment<\/span> provides flexibility, it doesn\u2019t give employers a free pass to fire employees whenever they wish. Federal and state laws create protected classes<\/span> and protect certain employee actions. Firing an employee on these grounds when it involves any of the following:<\/p>\n

Discrimination<\/span><\/h3>\n

Federal law prohibits employers from making employment decisions, including termination, based on an employee’s protected characteristics<\/span>. Federal anti-discrimination<\/span> laws like Title VII of the Civil Rights Act<\/u><\/a>, the Americans with Disabilities Act (ADA)<\/u><\/a>, and the Age Discrimination<\/span> in Employment Act (ADEA)<\/u><\/a> make it illegal to fire an employee based on their:<\/p>\n