Wrongful Termination: Know Your Rights and Legal Options

Being fired is painful. Being fired illegally is both painful and actionable. While employers can terminate at-will employees for most reasons, certain terminations are illegal. This guide helps you understand whether your termination might be wrongful and what you can do about it.

What Is Wrongful Termination?

Wrongful termination (also called wrongful discharge or wrongful dismissal) occurs when an employer fires an employee in violation of:

• Federal or state anti-discrimination laws
• Employment contracts
• Labor laws
• Public policy

Important: Being fired unfairly isn't automatically wrongful. Being fired illegally is wrongful.

At-Will Employment: The Baseline

Most U.S. employment is "at-will," meaning:

• Employers can terminate employees for any reason (or no reason)
• Employees can quit for any reason
• No advance notice is required

However, even at-will employees cannot be fired for illegal reasons.

Types of Wrongful Termination

1. Discrimination-Based Termination

It's illegal to fire someone based on protected characteristics.

Federally protected classes:

• Race and color
• National origin
• Sex (including pregnancy, sexual orientation, gender identity)
• Religion
• Age (40 and older)
• Disability
• Genetic information
• Citizenship status

State-protected classes (varies by state):

• Marital status
• Sexual orientation (where not covered federally)
• Political affiliation
• Military/veteran status
• Weight or appearance
• Source of income

Examples of discriminatory termination:

• Firing an employee after learning they're pregnant
• Terminating older workers and replacing them with younger ones
• Letting someone go after they request religious accommodation
• Firing someone after they disclose a disability

2. Retaliation-Based Termination

It's illegal to fire someone for engaging in protected activities.

Protected activities include:

• Filing a discrimination complaint
• Reporting workplace safety violations (OSHA)
• Reporting illegal activity (whistleblowing)
• Filing a workers' compensation claim
• Taking FMLA leave
• Participating in an investigation
• Discussing wages with coworkers
• Union organizing activities
• Refusing to do something illegal

Examples of retaliatory termination:

• Fired after complaining about sexual harassment
• Terminated after reporting safety violations
• Let go after filing for workers' comp
• Fired for discussing salary with colleagues

3. Breach of Contract

If you have an employment contract, termination violating its terms may be wrongful.

Types of contracts:

• Written employment agreements
• Collective bargaining agreements (union)
• Implied contracts from employee handbooks
• Verbal promises (harder to prove)

Contract violations include:

• Termination before contract end date
• Failure to follow required disciplinary procedures
• Termination without "cause" when cause is required
• Violation of guaranteed employment terms

4. Violation of Public Policy

Some terminations violate established public policy.

Examples:

• Firing someone for serving on jury duty
• Terminating an employee for voting
• Firing someone for refusing to commit an illegal act
• Terminating for filing a lawful complaint

5. Constructive Discharge

When conditions become so intolerable that you're forced to quit, it may be treated as wrongful termination.

Requirements:

• Conditions were objectively intolerable
• Employer knew or should have known
• Conditions were illegal (discrimination, etc.)
• You gave employer chance to correct

Constructive dismissal guide →

Signs Your Termination Might Be Wrongful

Red Flags

Timing-based red flags:

• Fired shortly after complaining about discrimination
• Terminated right after announcing pregnancy
• Let go soon after filing workers' comp claim
• Fired after requesting FMLA leave
• Terminated after being diagnosed with a condition
• Fired shortly after turning 40 (age discrimination)

Pattern-based red flags:

• Others in your protected class were also fired
• You were replaced by someone outside your protected class
• You were treated differently than similar employees
• Written performance reviews don't match verbal criticism

Process-based red flags:

• Sudden termination without prior warnings
• Termination contradicts recent positive reviews
• Made-up reasons for termination
• Different rules applied to you vs. others
• No opportunity to respond to allegations

Statement-based red flags:

• Discriminatory comments made by decision-makers
• References to your protected characteristics
• Comments about your age, gender, race, etc.
• "You'd be better off at home" (to pregnant employee)
• "We need fresh/young blood" (age discrimination)

What Wrongful Termination Is NOT

Not Wrongful (Even If Unfair)

Being fired for:

• Poor performance (if legitimate)
• Company downsizing (if applied fairly)
• Personality conflicts
• Being "not a good fit"
• Mistakes or errors
• Violation of company policy
• Restructuring or reorganization

These situations aren't wrongful unless there's evidence the stated reason is a pretext for illegal discrimination or retaliation.

The "Pretext" Issue

Sometimes legitimate-sounding reasons mask illegal ones:

• "Performance issues" right after you complained about harassment
• "Restructuring" but only protected class members are let go
• "Insubordination" for refusing to do something illegal

Courts look for evidence that the stated reason is a cover story.

Building Your Case

Document Everything

Before you're fired (if you sense it's coming):

• Save emails showing good performance
• Document discriminatory comments
• Keep copies of positive reviews
• Note inconsistent treatment
• Save relevant communications (to personal email)

After you're fired:

• Request your personnel file
• Get termination reason in writing
• Document what happened
• List witnesses
• Note timeline of events

Gather Evidence

Helpful evidence includes:

• Personnel file and performance reviews
• Emails and communications
• Witness statements
• Company policies and handbooks
• Hiring and firing patterns
• Comparative treatment of others
• Timeline of events
• Discriminatory statements

Know the Timeline

Statute of limitations varies:

• EEOC complaints: 180-300 days
• State agency complaints: Varies
• Lawsuits: Varies by claim type
• Don't delay — Time limits are strict

What to Do If You Suspect Wrongful Termination

Step 1: Don't Sign Anything Hastily

If offered a severance agreement:

• Take time to review
• Understand what you're waiving
• Consider having an attorney review
• Signing may waive your right to sue

Step 2: Document Immediately

While memories are fresh:

• Write down what happened
• Note dates, times, who said what
• List potential witnesses
• Gather documents you still have access to

Step 3: File for Unemployment

• File immediately
• Be honest about circumstances
• Wrongful termination doesn't prevent unemployment
• Your employer may contest; appeal if denied

Unemployment guide →

Step 4: Consult an Employment Attorney

Why consult an attorney:

• Evaluate strength of your case
• Understand your options
• Navigate complex laws
• Many offer free consultations
• Often work on contingency (no upfront cost)

When to definitely consult:

• Clear discrimination or retaliation
• Significant damages
• Complex legal issues
• You want to pursue legal action

Step 5: File an Administrative Complaint (If Appropriate)

For discrimination claims:

• File with EEOC (federal) or state agency
• Must file before suing in most cases
• Agency investigates
• May attempt mediation

EEOC process:

1. File a charge within 180-300 days
2. EEOC notifies employer
3. Investigation or mediation
4. EEOC issues determination
5. Right to sue letter (allows lawsuit)

Step 6: Consider Your Options

Options include:

• Negotiate a better severance
• File an administrative complaint
• Pursue litigation
• Accept the situation and move on

Potential Remedies

What You Might Recover

Back pay: Lost wages from termination to resolution

Front pay: Future lost earnings if reinstatement isn't feasible

Reinstatement: Getting your job back (rare in practice)

Compensatory damages: Emotional distress, pain and suffering

Punitive damages: Punishment for egregious conduct (capped in some cases)

Attorney's fees: Employer may pay your legal costs if you win

Realistic Expectations

Consider:

• Cases take time (1-3 years is common)
• Outcomes are uncertain
• Emotional toll of litigation
• Costs (even with contingency)
• Impact on future employment
• Settlement is common (and often preferable)

Finding an Employment Attorney

Where to Look

• State bar association referral
• NELA (National Employment Lawyers Association)
• Personal referrals
• Local legal aid (if income-qualified)

What to Ask

In your consultation:

• Do I have a case?
• What are my options?
• What's the likely timeline?
• What are the costs/fee structure?
• What are realistic outcomes?
• What's your experience with similar cases?

Fee Structures

Common arrangements:

• Contingency: Attorney gets percentage of recovery (often 33-40%)
• Hourly: You pay for time spent
• Hybrid: Reduced hourly rate plus smaller contingency
• Free consultation: Most employment attorneys offer this

Protecting Yourself in the Future

Before Problems Arise

• Know your rights
• Document performance and achievements
• Keep records of positive feedback
• Understand company policies
• Know your state's protections

If You Sense Trouble

• Start documenting immediately
• Save important communications
• Know your employee handbook
• Report discrimination/harassment through proper channels
• Create a paper trail
• Consult an attorney early

Know Your State's Laws

Some states offer more protection:

• Stronger anti-discrimination laws
• Additional protected classes
• Longer statutes of limitations
• More employee-friendly courts

Special Situations

At-Will Exceptions

Some states recognize exceptions:

• Implied contract: Handbook promises
• Good faith and fair dealing: Can't fire to avoid paying benefits
• Public policy: Can't fire for exercising legal rights

Union Employees

If you're in a union:

• Review your collective bargaining agreement
• Contact your union representative
• Grievance procedures may be required
• Different rules and protections apply

Government Employees

Federal and state employees have additional protections:

• Civil service rules
• Due process requirements
• Merit system protections
• Specific grievance procedures

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Key Takeaways

1. Unfair ≠ illegal — Not every bad termination is wrongful
2. Know the categories — Discrimination, retaliation, contract breach, public policy
3. Document everything — Evidence is crucial for any case
4. Watch the timing — Suspicious timing can support your case
5. Act quickly — Statutes of limitations are strict
6. Consult an attorney — Many offer free consultations
7. Know your options — From negotiation to litigation

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Related Resources:

• Quitting vs Fired vs Laid Off →
• Age Discrimination →
• Severance Agreements →
• First 24 Hours After Layoff →
• Constructive Dismissal →