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Wrongful Termination

The term “wrongful termination” generally refers to an unfair employment discharge. There is no wrongful termination law per se, but rather a variety of state and Federal laws with provisions that protect employees from such unfair employment discharge. Under such laws, wrongful termination might apply if your employer fired or laid you off, or forced you to quit or retire. Below are just a few examples of reasons to justifiably claim wrongful termination.

• Firing in violation of federal and state anti-discrimination laws
• Firing in retaliation for the employee's having filed a complaint or claim against the employer
• Firing in violation of oral and written employment agreements
• Firing in violation of labor laws, including collective bargaining laws

Discrimination

It is illegal for an employer to terminate you solely on the basis of gender, race, creed, disability and a variety of other discriminatory reasons. Title VII of the Civil Rights Act of 1964 prohibits employers from firing employees on the basis of race, national origin, gender, or religion. The Americans With Disabilities Act (ADA) prohibits employee firing based on a physical or mental handicap. The Age Discrimination in Employment Act (ADEA) protects employees and job applicants who are 40 years of age or older from being discharged because of their age.

There are additional state and local laws that protect against unfair employee discharge, such as sexual orientation discrimination law.

More information on employment discrimination.

Retaliation

It is illegal for an employer to terminate you for reporting their illegal actions to the proper authorities. This action is commonly known as "whistle blowing".

Employees are not usually protected for other types of disclosure, such as telling a friend about the employer's misconduct, or for reporting the misconduct to the news media.

It is important to note that the statute of limitations applying to whistle blower cases is usually very short. Some statutes require that action be taken within weeks of the employer's retaliatory act. Thus it is usually important for whistleblowers who suffer retaliation to consult with lawyers as soon as possible after they become aware of the retaliation.

An employer also cannot discharge you in retaliation for something you legally did or they illegally did, or because you refused to do something that was against public policy and sound morality, such as breaking the law.

For example, if your boss fires you because you filed a legit worker’s compensation claim or didn't yield to his or her sexual advances, you have good material for winning a wrongful termination case.

Breach of Explicit or Implied Contract

If you work on contract for a specified period and are satisfying the terms, employers typically can't terminate your contract without good cause before the specified period ends. But if your contract includes an "escape clause" indicating that either party may end the relationship without consequence, then the employer can probably use this as good cause.

In the absence of explicit contracts, some states may consider employers' policy manuals, employee handbooks, employee agreements and similar documents as binding, implied or "implied-in-fact" contracts of continued employment, depending on how they're worded. Where a company document of this nature outlines a disciplinary process that must precede termination, the failure to follow that process may support a wrongful termination suit. If such a document states that employees will only be fired "for cause", an employer may have to document valid cause, such as the employee's failure to meet performance standards, if the termination is challenged.

According to the 1988 decision in Foley vs. Interactive Data Corp., states might also consider an eployee's chain of promotions, raises, great merit reviews, and verbal assurances of job security as an implied-in-fact contract. But not all state courts acknowledge the so-called Foley criteria to the letter. Also, remember that employment agreement you signed way back when you were hired? You might have let your employer off the hook, if it included an acknowledgement that such things do not constitute a contract or guarantee of continued employment.

Constructive Discharge

It is illegal, in some circumstances, for an employer to make or allow a change that makes working conditions intolerable and thus forces an employee to quit.

If an employer made or allowed a change that forced you to quit, and it can reasonably be said that any other employee would have quit under the same circumstances as well, you might have a case for constructive discharge, a form of wrongful termination.

However, constructive discharge is not generally easy to prove. You must show that your employer recently made an extraordinary and intolerable change to your working conditions that led directly to your resignation and that the change and your resignation occurred close enough in time to have established a “cause and effect” relationship. You must also show that your employer intentionally created or allowed the change, even though it was foreseeable that it would compel any reasonable employee to resign.

If you have been wrongfully terminated, you may have rights to severance pay, damages, or unemployment compensation. To determine whether or not you have a wrongful termination case, it is best to consult a labor attorney that specializes in this matter. They will be knowledgeable about which agency through which to file your claim. Regardless of which route you take, don’t delay. There may be a time limit for filing your claim.