HR & Employment
Definition
Wrongful termination occurs when an employee is fired for an illegal reason — such as discrimination based on a protected characteristic, retaliation for reporting violations, or breach of an employment contract. Despite the US at-will employment default, employees have significant legal protections against certain types of terminations.
In at-will employment states, employers can generally terminate employees for any reason or no reason — but not for an illegal reason. Wrongful termination claims arise from: (1) Discrimination — termination based on race, sex, age, disability, national origin, religion, pregnancy, or other protected class under Title VII, ADEA, ADA, or state law; (2) Retaliation — firing an employee for reporting harassment, filing a workers' compensation claim, whistleblowing, or taking protected leave (FMLA); (3) Breach of contract — violating terms of a written employment agreement or, in some states, implied contracts created by employee handbooks or verbal promises; (4) Violation of public policy — firing an employee for serving on jury duty, voting, or refusing to perform illegal acts. Remedies can include reinstatement, back pay, front pay, compensatory damages, and punitive damages in egregious cases.
Wrongful termination claims are one of the most common and costly employment law risks for businesses. Before terminating an employee, particularly one who has raised complaints, filed for leave, or belongs to a protected class, an employment attorney or HR consultant can help you assess legal risk and ensure the documentation and process support a defensible decision.