Wrongful Termination: Were You Fired Illegally?

Most workers in the United States are "at-will" employees, meaning they can be fired at any time and for almost any reason—including poor performance, cost-cutting by the employer, and sometimes for no reason at all.

But federal and state laws prohibit employers from firing workers for discriminatory reasons or in retaliation for reporting workplace harassment or unsafe working conditions (among other things).

In addition, workers who have an employment contract can sue their employer for breach of contract if they're fired in violation of the agreement. For example, an employment contract might provide that the worker can only be fired for good cause, or after an internal dispute resolution process.

What is Wrongful Termination?

A wrongful termination is any firing that is illegal. A firing is illegal when it:

• violates a federal, state, or local law, or
• violates an employment contract.

Just because a termination is unfair doesn’t make it illegal. For example, it might be unfair for your boss to fire you so he can hire his inexperienced son or daughter. However, because there’s no law against nepotism, you wouldn’t have a wrongful termination claim.

Violation of Federal, State, or Local Law

The default rule in the United States is "at-will employment." This means employers can fire employees at any time, for any reason. However, there is one important exception to this rule. Employers cannot fire at-will employees for illegal reasons.

Illegal Discrimination

Under federal law, employers with 15 or more employees are prohibited from discriminating against workers based on certain protected characteristics like race, national origin, gender (including pregnancy), religion, age (40 and older), disability, citizenship status, and genetic information. In addition, most states have laws barring workplace discrimination, and some of these laws protect additional characteristics like sexual orientation, gender identity, marital status, and status as a domestic violence victim. Some cities provide even further protection.

To be sure, it can be difficult to prove in court that you were fired because of your ethnicity, disability, age, gender, or other protected characteristic. These days, employers seldom announce the fact that they’re discriminating based on race, gender, or disability. That’s why it’s important to gather different types of evidence to help show that you were fired or forced to quit because of illegal discrimination or harassment. For example:

• an email from your boss denying a reasonable accommodation for your disability, making some remark that shows your age was a factor in your termination, or stating that you were fired for speaking Spanish with coworkers
• good performance reviews that contradict your employer’s claim that you were fired for doing poor work
• emails from coworkers with repeated racist jokes or sexual innuendo, along with copies of your complaints to management about the problem
• testimony from coworkers who witnessed sexual harassment
• statistical evidence showing how many older workers were laid off but later replaced by younger employees
• circumstantial evidence of suspicious timing, such as an email showing that you told your boss you were pregnant only a week before you were fired, and
• documentary evidence of different treatment for employees whose only significant distinction was their race, gender, age, or other protected characteristic, such as disciplinary records showing that white employees received warnings for being late to work, while a Muslim worker was fired for the same offense.

Retaliation and Whistleblowers

The same laws that prohibit employment discrimination also prohibit employers from punishing employees for exercising their rights under the law (called "retaliation"). For example, your employer may not fire or discipline you for:

• making a complaint of discrimination or harassment
• participating in an investigation into your employer’s discriminatory practices
• asserting your rights under the Family and Medical Leave Act
• requesting a reasonable accommodation for a disability or religious beliefs.

Most states also protect whistleblowers—those who report illegal actions by the employer to a government agency. If, for example, you report to the Occupational Safety and Health Administration that your employer refuses to remove dangerous hazards from the workplace, you generally can't be fired for doing so.

Violation of Employment Contract

Workers who have an employment contract are not at-will employees, and often can't be fired as freely as at-will workers. Although we usually think of employment contracts as being written, they can also be created by words and actions. A contract employee cannot be fired if it would violate the terms of the contract. Typically, this means that employers cannot fire employees with having a good reason (or "good cause") before the term of the contract is up.

When to Contact an Employment Law Attorney

If you've been fired for an illegal reason or in violation of an employment contract, you might have grounds for a wrongful termination lawsuit. Hiring an attorney as soon as possible after you're fired will increase your chances of a satisfactory result, whether a settlement or a judgment in court.