Losing a job can be financially and emotionally difficult, especially when an employee believes they were fired unfairly or illegally. While employers generally have broad authority to make employment decisions, that authority is not unlimited.
Federal and state laws prohibit certain types of employment discrimination, retaliation, and other unlawful conduct. An employee may have a legal claim if the termination violated an employment contract, breached a specific legal protection, or occurred because the employee engaged in legally protected activity.
However, being fired unfairly is not always the same as being fired illegally. Understanding the distinction is important before deciding whether to pursue a legal claim.
This article explains wrongful termination in the United States, common examples of potentially unlawful firing, employee rights, evidence to preserve, administrative complaints, and when speaking with an employment attorney may be appropriate.
What Is Wrongful Termination?
Wrongful termination generally refers to a firing that violates applicable law or an enforceable employment agreement.
There is no single federal law stating that every unfair firing is illegal.
In many parts of the United States, employment is generally considered “at will.” This means an employer can often terminate an employee without establishing a particular reason, provided the termination does not violate applicable law or an employment agreement.
For example, an employer may generally be able to terminate an employee because the business is restructuring, the employee’s position is being eliminated, or the employer is dissatisfied with performance.
The situation can be very different if the actual reason for termination was unlawful discrimination or retaliation for exercising a protected legal right.
At-Will Employment Explained
At-will employment is a major concept in U.S. employment law.
Generally, an at-will employee can leave a job at any time, and the employer can also terminate the employment relationship at any time, subject to important legal limitations.
However, “at will” does not mean an employer can legally fire someone for any reason whatsoever.
For example, federal law prohibits certain forms of employment discrimination based on protected characteristics.
Federal and state laws may also protect employees who engage in certain legally protected activities.
Can an Employer Fire Someone for Discriminatory Reasons?
Federal law prohibits certain forms of employment discrimination.
Depending on the applicable law and circumstances, protected characteristics can include:
- Race
- Color
- Religion
- Sex
- National origin
- Disability
- Age, for qualifying employees
- Genetic information
State and local laws may provide additional protections.
If an employee is fired because of a legally protected characteristic, the termination may potentially violate anti-discrimination law.
However, proving discrimination can be complicated.
An employee generally needs evidence supporting the allegation rather than simply believing that discrimination occurred.
What Is Retaliatory Termination?
Retaliation is another common basis for employment-related legal claims.
An employer generally cannot retaliate against an employee for engaging in certain legally protected activities.
Examples may include reporting discrimination or participating in an investigation concerning unlawful workplace conduct.
Other federal and state laws provide protections for employees who report particular types of unlawful activity.
The exact protections depend on the law involved.
If an employee is terminated shortly after making a protected complaint, the timing may become relevant evidence, although timing alone does not necessarily prove unlawful retaliation.
Can You Be Fired for Reporting Illegal Conduct?
Certain laws protect employees who report specific forms of unlawful conduct.
These protections are often referred to as whistleblower protections.
However, whistleblower laws are not identical.
Some laws protect employees who report particular violations, while others apply to specific industries, government contractors, securities matters, workplace safety issues, or other areas.
An employee who believes they were fired because they reported illegal conduct should identify exactly what was reported and which law may provide protection.
What If You Were Fired After Filing a Workers’ Compensation Claim?
Workers’ compensation systems generally provide benefits to eligible employees who suffer qualifying workplace injuries.
State laws may also prohibit certain forms of retaliation against employees who exercise protected rights under workers’ compensation laws.
If an employee is fired shortly after reporting a workplace injury or pursuing workers’ compensation benefits, the circumstances may warrant legal review.
However, timing alone does not establish unlawful retaliation.
The employer may have another legitimate reason for the termination, and the employee’s rights depend on the law of the relevant state.
Can an Employer Fire You for Taking Medical Leave?
Certain employees may have legal protections relating to medical or family leave.
The federal Family and Medical Leave Act, commonly known as FMLA, provides eligible employees of covered employers with certain job-protected leave rights for qualifying reasons.
The law has eligibility requirements and does not apply to every employee or every employer.
Other federal, state, and local laws may provide additional leave protections.
If an employee is terminated after requesting or taking legally protected leave, the circumstances may require careful review.
What If You Were Fired After Requesting a Disability Accommodation?
The Americans with Disabilities Act provides certain protections to qualified individuals with disabilities and may require covered employers to provide reasonable accommodations in appropriate circumstances, unless doing so would create an undue hardship.
An employee may have a legal claim if they are punished or terminated because they requested a legally protected accommodation or because of disability discrimination.
However, disability-related employment cases can involve complicated questions concerning the employee’s condition, job duties, accommodation requests, and employer obligations.
What If You Were Fired Because of Your Age?
Federal law provides certain protections against age discrimination.
The Age Discrimination in Employment Act generally protects qualifying workers who are at least 40 years old from certain forms of age discrimination.
State laws may provide broader protections.
Evidence in age discrimination cases may include statements by decision-makers, patterns involving terminations or hiring, replacement decisions, performance records, and other circumstances.
What If You Signed an Employment Contract?
Not every employee works under an at-will arrangement.
An employment contract may establish specific terms concerning:
- Length of employment
- Compensation
- Termination
- Severance
- Job duties
- Notice requirements
- Confidentiality
- Arbitration
- Other employment conditions
If an employer terminates an employee in violation of an enforceable contract, the employee may have a breach-of-contract claim.
The wording of the contract matters.
Some agreements provide employers with broad termination rights, while others impose specific requirements.
What Is Constructive Discharge?
Constructive discharge can arise when working conditions become so intolerable that an employee feels they have no reasonable choice but to resign.
However, not every unpleasant workplace creates a constructive-discharge claim.
The legal standard depends on the applicable law and circumstances.
If you believe you are being pushed out because of discrimination, retaliation, or another unlawful reason, consider obtaining legal advice before resigning.
Quitting without understanding the consequences can affect potential legal claims, unemployment benefits, and other rights.
What Should You Do If You Think You Were Wrongfully Fired?
If you believe your termination was unlawful, start by documenting what happened.
Write down:
- The date you were terminated
- Who made the decision
- What reason the employer gave
- Previous warnings or performance reviews
- Relevant conversations
- Emails and messages
- Complaints you made
- Requests for leave or accommodations
- Names of witnesses
- Employment policies
- Your employment agreement
Preserve relevant documents lawfully.
Do not take confidential company information that you are not entitled to possess.
Do Not Delete Important Evidence
If you have emails, text messages, performance reviews, or other documents relevant to your termination, preserve them.
Avoid altering documents.
If you communicate with your former employer, keep copies of important correspondence.
A clear timeline can be particularly helpful.
For example:
January: Employee reports alleged workplace discrimination.
February: Employee participates in an internal investigation.
March: Employee receives a negative performance evaluation.
April: Employee is terminated.
The timeline does not prove retaliation by itself, but it may help an attorney evaluate the circumstances.
Can You Collect Unemployment Benefits?
Being fired does not automatically mean that you cannot receive unemployment benefits.
Eligibility varies by state and depends on the circumstances of the termination and other requirements.
Employees who lose their jobs through no fault of their own may often qualify, but specific state rules determine eligibility.
If you believe you were terminated unlawfully, you may still want to apply for unemployment benefits rather than assuming that filing a legal claim automatically prevents you from doing so.
Can You Sue Your Former Employer?
Potentially, but the answer depends on the legal basis for the claim.
Possible claims can involve:
- Employment discrimination
- Retaliation
- Whistleblower protection
- Breach of contract
- Wage violations
- Family or medical leave rights
- Disability accommodation
- Other state or federal employment protections
Not every termination creates a lawsuit.
A lawyer generally needs to identify a specific legal right or obligation that the employer allegedly violated.
Administrative Complaints May Be Required
Some employment discrimination claims may involve administrative procedures before a lawsuit can be filed.
For example, certain federal discrimination claims may involve the Equal Employment Opportunity Commission, commonly known as the EEOC.
Deadlines can apply.
State agencies may also handle employment discrimination complaints.
Because administrative filing requirements can be complicated, employees should not assume that they can wait indefinitely before taking action.
How Much Could a Wrongful Termination Case Be Worth?
There is no universal settlement amount.
Potential damages can depend on:
- Lost wages
- Lost benefits
- Future lost income
- Emotional distress, where legally available
- Attorney fees
- Punitive damages, where legally available
- Contract damages
- Other legally recognized losses
The amount also depends on the strength of the evidence and the applicable law.
An employee should be cautious about websites that promise a specific settlement amount without reviewing the facts.
How Do Employment Lawyers Charge?
Employment attorneys may use different fee structures.
Depending on the type of case, a lawyer may charge:
- An hourly fee
- A contingency fee
- A flat fee
- A combination of arrangements
Some employment cases may involve fee-shifting laws under which a prevailing employee can potentially recover attorney fees.
Ask the lawyer to explain the fee arrangement before signing a representation agreement.
When Should You Speak With an Employment Attorney?
Consider consulting an employment attorney if:
- You believe discrimination caused your termination
- You were fired after making a protected complaint
- You were fired after requesting legally protected leave
- You were denied a disability accommodation
- You reported potentially illegal conduct
- You have an employment contract
- You were denied wages or benefits
- Your employer offered a severance agreement
- You are being pressured to sign legal documents
- You believe important evidence exists
- You are unsure about a filing deadline
Speaking with an attorney does not necessarily mean filing a lawsuit.
A consultation can simply help you understand your rights and available options.
Be Careful With Severance Agreements
Employers sometimes offer severance packages when an employee leaves the company.
A severance agreement may include provisions concerning:
- Payment
- Benefits
- Confidentiality
- Non-disparagement
- Release of legal claims
- Return of company property
- References
- Arbitration
- Other obligations
Once you sign a release, you may give up certain legal claims.
Do not sign a severance agreement simply because you feel pressured to do so.
Read it carefully and consider having an employment attorney review it if you believe you may have a legal claim.
Final Thoughts
Being fired can be extremely stressful, but not every unfair or frustrating termination is legally wrongful.
The key question is whether the employer violated a specific law, enforceable contract, or protected employment right.
If you believe your termination involved discrimination, retaliation, whistleblower activity, protected leave, disability rights, wage violations, or a breach of contract, preserve relevant evidence and investigate your legal options promptly.
Employment law is highly dependent on federal, state, and sometimes local laws. Deadlines can also vary depending on the type of claim.
If you believe you were wrongfully terminated, consider consulting a qualified employment attorney licensed in the relevant jurisdiction before signing a release, accepting a settlement, or allowing an important filing deadline to pass.
This article is intended for general educational purposes and does not constitute legal advice.