Understanding Wrongful Termination Claims: A Comprehensive Guide

Discover all you need to know about wrongful termination claims, including what constitutes a wrongful dismissal and how you can protect your rights.

A wrongful termination claim is filed in a court of law by someone who believes they were unjustly or illegally fired from their job. Wrongful termination claims involve an alleged violation of federal or state antidiscrimination laws, oral and written employment agreements/contracts, or labor laws, including collective bargaining or whistleblower laws. Employees who feel their termination was a form of sexual harassment or in retaliation for having filed a complaint against the employer may also file a wrongful termination claim.

Key Takeaways

  • A wrongful termination claim is a lawsuit-like action that an employee files against an employer whom they feel has fired them illegally.
  • Most wrongful termination claims are based on a violation of state or federal laws, but they can also represent a breach of an employment contract.
  • Types of wrongful termination claims can include dismissal due to discrimination, medical history, retaliation for whistleblowing/complaint filing, organizing a union, or without contractual cause.
  • Compensation for wrongful termination can include monetary damages and/or restoration of employment.

In the United States, employment in most states is considered ‘at will,’ meaning that employers neither need to have a reason to fire a worker nor give advance notice of termination (though many do issue formal notices to allow workers to obtain COBRA health benefits and unemployment insurance benefits). Still, employment-at-will does not mean that businesses can discharge employees completely at their discretion. Firing people for certain reasons or motives is not permitted, especially if it violates state or federal laws or breaches a contract of some sort.

Individuals who feel their involuntary dismissal represents such a violation can file a wrongful termination claim against their employer. A wrongful termination claim is like a lawsuit—the employee is bringing an action against their former company and seeking compensation for being unfairly fired.

If the employee prevails, then the compensation for wrongful termination can include monetary damages based on lost wages, job hunting costs, and other expenses. An employee could also ask to have their job restored or be given a comparable position. Depending on the grounds of the claim (see below), the employer might also face statutory penalties.

Types of Wrongful Termination Claims

Employees can file wrongful termination claims on several grounds. Some of the most common include:

Discrimination

Someone fired because of their

Related Terms: discrimination, retaliation, employment contract, medical history, labor union, whistleblower

References

  1. U.S. Equal Employment Opportunity Commission. “Who Is Protected Against Discrimination?”
  2. U.S. Department of Labor. “Termination”.
  3. U.S. Equal Employment Opportunity Commission. “How to File a Charge of Employment Discrimination”.
  4. U.S. Occupational Safety and Health Administration. “The Whistleblower Protection Program”.
  5. U.S. Equal Employment Opportunity Commission. “Genetic Information Discrimination”.
  6. U.S. National Labor Relations Board. “National Labor Relations Act”.
  7. Nolo. “Wrongful Termination: Was Your Firing Illegal?”

Get ready to put your knowledge to the test with this intriguing quiz!

--- primaryColor: 'rgb(121, 82, 179)' secondaryColor: '#DDDDDD' textColor: black shuffle_questions: true --- ## What is wrongful termination? - [x] Terminating an employee in violation of the law or an employment contract - [ ] Terminating an employee for breaching company policies - [ ] Terminating an employee due to company downsizing - [ ] Terminating an employee due to poor performance ## Which of the following can be a basis for wrongful termination? - [ ] Excessive tardiness - [x] Retaliation for whistleblowing - [ ] Low performance review scores - [ ] Frequent absenteeism ## Under which law is wrongful termination often claimed in the United States? - [ ] Securities Act - [ ] Dodd-Frank Act - [x] Employment-at-will doctrine exceptions - [ ] Patriot Act ## Retaliation for what action can lead to a wrongful termination claim? - [ ] Filing too many vacation days - [ ] Asking for a promotion - [x] Filing a harassment complaint - [ ] Missing a project deadline ## What might an employee seek as a remedy in a wrongful termination lawsuit? - [ ] Permission to work remotely - [ ] Granting of overdue vacation days - [x] Reinstatement and/or back pay - [ ] Higher performance bonuses ## What can an employer use as a defense in a wrongful termination lawsuit? - [x] Documented legitimate reasons for termination - [ ] Verbal complaints about employee behavior - [ ] Employee's past interactions with colleagues - [ ] Derek's feel that the termination was necessary ## What does the term "at-will employment" mean? - [ ] Employees can terminate their employment only with cause - [x] Either employer or employee can end the employment relationship at any time, with or without reason - [ ] Employers have limited power to terminate employees - [ ] Employees can suspend their employment temporarily ## Which of the following is NOT typically involved in a wrongful termination case? - [ ] Legal counsel - [ ] Evidence of retaliation or discrimination - [x] Personal conflicts between coworkers - [ ] Employment contract review ## Can an implied contract create a basis for a wrongful termination claim? - [x] Yes - [ ] No - [ ] Only if written down - [ ] Only through an offer letter ## What can affect the outcome of a wrongful termination claim? - [ ] Co-workers' opinions of the employee - [x] The thoroughness of documentation and evidence - [ ] The length of employment only - [ ] The employee's willingness to return to work