What You Need to Know About Wrongful Termination for At-Will Employees
Many people mistakenly believe an employer can fire an at-will employee for any reason. However, this is not the case. Here’s everything to know about wrongfully terminated at-will employees.
Yes, wrongful termination is a significant exception to the layoff of at-will employees. Wrongful termination can mean different reasons depending on the state where you work.
Related: Wrongful Termination Laws in California
What is Wrongful Termination?
At-will employment refers to a relationship between an employer and employee where either party may end the relationship:
- At any time,
- With or without advance notice, and
- For any reason or no reason at all.
An at-will relationship may seem like an employer can fire an employee at any time, but this is not always true. Wrongful termination prevents an employer from firing an employee for various reasons.
Wrongful termination applies to layoffs in violation of the following aspects of an at-will relationship:
- State public policy
- Established, implied contract for employment
- The Implied covenant of good faith and dealing,
- Federal, state, or local anti-discrimination laws, and
- Retaliation.
A person may consult the National Conference of State Legislatures (NCSL) to see the Employment-At-Will Exceptions by State for public policy, implied contracts, and the Covenant of Good Faith and Fair Dealing.
Related: Grounds for a Wrongful Termination Claim in California
Violation of State Public Policy
A layoff qualifies as wrongful termination if the employee’s dismissal breaks state public policy laws. An employer’s termination of an employee violates public policy if the employee:
- Refused to break the law,
- Reported a potential violation of a law,
- Exercised a legal right or privilege, or
- Performed a legal obligation.
Public policy can appear in state constitutions, statutes, administrative rules, and any other medium containing state law.
Violation of an Established, Implied Contract
An established, implied contract describes an unspoken between the employer and employee governing employment. The employer’s oral or written terms guiding work may be acceptable grounds for wrongful termination if the employer disciplines the employee for failing to follow the rules. Frequent guideline examples include employee handbooks, training instructions, and other media ordering an employee to behave a certain way in particular situations. A person can check their state website to see if the state recognizes a violation of an established, implied contract.
Violation of the Implied Covenant of Good Faith and Fair Dealing
The implied covenant of good faith and fair dealing expects a contract’s signees to behave in good faith and deal fairly without breaking promises, avoiding obligations, or denying what the other party understood. The court can consider several factors concerning the implied covenant of good faith and fair dealing, but the determination depends on the case’s unique circumstances.
Violation of Federal, State, or Local Anti-Discrimination Laws
Title VII of the Civil Rights Act of 1964 prohibits discrimination based on race, national origin, gender, or religion.
An employer with fifteen or more employees may not engage in the following actions with an employee due to race, national origin, gender, or religion:
- Refuse to hire,
- Fire,
- Deny training,
- Fail to promote,
- Underpay or demote,
- Discipline, or
- Harass.
Title VII further prevents an employer from discrimination based on age, disability, and pay.
Violation of Anti-Retaliation Laws
Violation of anti-retaliation laws often means an employer fired an employee for one of the following reasons:
An employee “blew the whistle” on the employer for violating or intending to violate state/federal law, or
Complaining of sexual harassment, discrimination, or a hostile workplace
Wrongful termination involves the employer “retaliating” against the employee for committing the following acts, even though the employee is legally allowed and encouraged to do so. Federal and state whistleblower laws protect employees who report workplace criminal activity from employer retaliation. Illegal activity can include violating labor, health, safety, discrimination, or any other laws applicable to a job. The actions a wrongfully terminated whistleblower can take depend on the employer’s violation and the state it occurred in. A whistleblowing employee can potentially sue the employer for damages, compensation, attorney fees, reinstatement, or back pay.
What Should I Do if I Believe My Employer Wrongfully Terminated Me?
The first step a person should take is to ensure the state of occupation recognizes the employer’s suspected violation as wrongful termination. A wrongfully terminated employee should also try to act as quickly as possible, as some states require a person to file a wrongful termination lawsuit within a limited period. An experienced attorney can help a former employee determine if wrongful termination applies and construct a strong claim.
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