Understanding Your Rights: A Guide to Wrongful Termination Claims

In the United States, most employment relationships operate on an “at-will” basis, meaning an employer can terminate an employee for almost any reason—or no reason at all. However, this flexibility has critical exceptions. A termination becomes “wrongful” when it violates federal, state, or local laws, an employment contract, or established public policy.

If you believe you were unfairly dismissed, it’s crucial to understand the legal distinctions and your available options. This guide provides a clear overview of what constitutes a wrongful termination claim and the steps you can take to protect your rights.

What Makes a Termination Wrongful?

A firing is not wrongful just because it feels unfair. It must be a specific legal claim based on a violation of a legal right. There are several primary categories under which a wrongful termination claim can be made.

1. Discrimination

This is one of the most common grounds for a wrongful termination lawsuit. Federal laws like Title VII of the Civil Rights Act, the Age Discrimination in Employment Act (ADEA), and the Americans with Disabilities Act (ADA) protect employees from being fired based on their protected characteristics. These include:

• Race, color, or national origin
• Religion
• Sex (including pregnancy, sexual orientation, and gender identity)
• Age (40 or older)
• Disability or genetic information

An employee can have a strong case if they can show that their protected characteristic was a “motivating factor” in their employer’s decision to fire them.

2. Retaliation

It is illegal for an employer to fire an employee for engaging in legally protected activities. These activities include, but are not limited to, reporting sexual harassment, filing a complaint about discrimination, reporting safety violations (e.g., to OSHA), or acting as a whistleblower to report illegal company conduct. Firing an employee shortly after they report a problem can be strong evidence of retaliation.

3. Breach of Contract

While most employment is at-will, some employees have a written or implied employment contract that specifies the conditions under which they can be terminated. If an employer fires an employee in violation of these terms—for example, without “just cause” as required by the contract—the employee may have a claim. Implied contracts can also be created by employee handbooks or consistent company policies.

4. Violation of Public Policy

This exception to at-will employment applies when an employee is fired for a reason that is contrary to a well-established public policy. Examples of this include being terminated for:

• Refusing to perform an illegal act, such as falsifying financial records
• Fulfilling a public obligation like jury duty or military service
• Exercising a statutory right, like filing a workers’ compensation claim

The Legal Process: What to Expect

The path to a wrongful termination claim can vary, but generally involves several key stages.

For most discrimination claims, the first step is to file a “Charge of Discrimination” with the Equal Employment Opportunity Commission (EEOC) or a corresponding state agency. This is a mandatory prerequisite before you can file a lawsuit in federal court.

After filing, the agency will investigate, and if they find the complaint valid, they may attempt mediation. If mediation fails or if the agency closes the case, they will issue a “right to sue” letter. This letter allows you to file a lawsuit in court. The deadlines for filing are strict and can be as short as 180 to 300 days for federal claims, and they vary by state and the type of claim.

Remedies and Compensation

If your claim is successful, you may be able to recover various types of compensation, or “damages”.

Category	Description
Lost Wages and Benefits	This includes compensation for back pay (wages you lost since termination) and front pay (future wages you would have earned), as well as lost benefits like health insurance.
Emotional Distress	You may be awarded damages for the emotional suffering and stress caused by the wrongful termination.
Punitive Damages	In cases where the employer’s conduct was particularly egregious, the court may award punitive damages to punish the employer and deter similar behavior.
Reinstatement	In some cases, the court may order that you be reinstated to your job or a comparable position.

Summary of Key Steps

1. Assess Your Claim: Determine if your termination was based on discrimination, retaliation, a breach of contract, or a violation of public policy. Not every unfair firing is illegal.
2. Document Everything: Immediately gather and preserve all relevant documents, including emails, performance reviews, and your employment contract. Do not rely on digital files that you may lose access to.
3. Consult a Legal Expert: Given the complexity and strict deadlines involved, it is highly recommended to seek guidance from a legal expert specializing in employment law as soon as possible.
4. File with the Appropriate Agency: For discrimination or retaliation claims, you must file a charge with the EEOC or a state agency before you can proceed to court.

Frequently Asked Questions (FAQ)

Q1: What is “at-will” employment?

A: “At-will” employment means that an employer can terminate an employee at any time and for any reason, or no reason at all, as long as it is not an illegal reason.

Q2: What is “constructive discharge”?

A: Constructive discharge occurs when an employer creates such an intolerable or hostile work environment that a reasonable person would feel forced to resign. In this scenario, the resignation is considered an involuntary termination, and it can be a basis for a wrongful termination claim.

Q3: Do I need a legal expert to file a claim?

A: While you are not required to hire a legal expert to file a charge with the EEOC, the legal process can be complex. Consulting with an employment law expert is highly recommended to assess the strength of your case and navigate the various legal procedures and strict deadlines.

Q4: What if I have a performance issue?

A: An employer can fire an employee for poor performance. However, if the poor performance is used as an excuse to fire you for a discriminatory reason, you may still have a claim. For example, if you are fired after disclosing a disability, and your employer claims it was for a minor performance issue, this could be a pretext for discrimination.

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