Losing your job unexpectedly can be devastating, but not every termination gives rise to legal claims. Most employment in the United States is at-will, meaning employers can fire workers for almost any reason. However, when termination violates specific laws or contractual obligations, you may have grounds for a wrongful termination lawsuit that provides compensation for your losses.
What Makes a Termination Wrongful
Wrongful termination occurs when an employer fires an employee in violation of federal or state law, employment contracts, or public policy. Simply being treated unfairly or disagreeing with the decision isn't enough. Illegal reasons for termination include discrimination based on protected characteristics, retaliation for protected activities, violations of employment contracts, and firing that contravenes clear public policy.
Understanding the specific legal theory supporting your claim is essential because different types of wrongful termination involve different elements, procedures, and remedies. An employee fired for racial discrimination pursues a fundamentally different claim than one fired for refusing to commit illegal acts, though both qualify as wrongful termination.
Discrimination-Based Wrongful Termination
Federal and state laws prohibit firing employees because of their race, color, national origin, sex, religion, age, disability, or genetic information. Many states add additional protected categories including sexual orientation, gender identity, and marital status. When termination decisions are motivated by these protected characteristics rather than legitimate business reasons, the firing constitutes illegal discrimination.
Proving discriminatory termination typically requires showing that you belonged to a protected class, performed your job satisfactorily, were terminated, and were either replaced by someone outside your protected class or treated differently than similarly situated employees outside your class. Direct evidence of discriminatory comments or conduct strengthens claims, but most discrimination cases rely on circumstantial evidence.
Retaliation Claims
Employers cannot fire employees for engaging in legally protected activities. Retaliation claims arise when termination follows reporting harassment or discrimination, filing workers' compensation claims, refusing to participate in illegal activities, reporting safety violations, engaging in union activities, or exercising rights under family and medical leave laws.
The timing between protected activity and termination often provides the strongest evidence of retaliation. When an employee is fired shortly after reporting misconduct or exercising legal rights, the temporal proximity suggests the termination was motivated by the protected activity rather than legitimate performance concerns.
Contract Violations
Written employment contracts may limit an employer's ability to terminate at will, requiring just cause for termination or providing specific procedures that must be followed. When employers fail to honor these contractual commitments, breach of contract claims arise. Employee handbooks can sometimes create implied contracts that modify at-will status, particularly when they outline termination procedures or promise job security.
Public policy exceptions protect employees from termination for refusing to violate laws, reporting illegal employer conduct, or exercising statutory rights. Even without a contract, firing employees for these reasons violates public policy and supports wrongful termination claims in most states.
Damages in Wrongful Termination Cases
Successful wrongful termination plaintiffs may recover back pay representing wages lost from termination to judgment, front pay for future lost earnings when reinstatement isn't practical, emotional distress damages, and in some cases punitive damages for particularly egregious conduct. Mitigation requirements expect terminated employees to seek comparable employment, and damages are reduced by amounts earned or reasonably available from new employment.
Many wrongful termination claims must first proceed through administrative agencies before litigation. Filing EEOC charges for discrimination claims or complaints with state agencies preserves your rights and is typically required before federal court lawsuits.