Wrongful Termination:
Fight Your Illegal Firing

Wrongful termination occurs when your employer fires you for an illegal reason in violation of federal or state law, or in breach of an employment contract. While most employment in the United States is "at-will"—meaning you or your employer can end the relationship at any time for any reason—the law creates important exceptions that protect workers from arbitrary and illegal firings.

It is illegal to fire someone because of their membership in a protected class. You cannot be fired because of your race, color, religion, sex (including pregnancy, sexual orientation, and gender identity), national origin, age (40 or older), disability, or genetic information. It is also illegal to fire you in retaliation for exercising your legal rights—such as reporting safety violations, filing discrimination complaints, taking medical leave, or blowing the whistle on illegal activities.

Wrongful termination also includes firings that violate employment contracts. If you have a written or implied contract guaranteeing employment for a certain period or requiring "good cause" for termination, your employer must comply with those terms. Additionally, firing someone in a way that violates public policy—such as firing an employee for refusing to commit perjury or for serving on jury duty—is illegal even in at-will states.

Many employees do not realize they have been wrongfully terminated because they assume at-will employment means their employer can fire them for any reason. This is not true. The law protects you from terminations based on discrimination, retaliation, contract violations, and violations of fundamental public policy. If you believe you were fired for an illegal reason, you may have a wrongful termination claim regardless of your state's at-will employment doctrine.

At-will employment is the default employment relationship in 49 states (Montana is the exception). It means that either you or your employer can terminate the employment relationship at any time, for any reason or no reason, with or without notice. Your employer does not need to provide a reason for firing you, and you do not need to give notice when you quit.

At-will employment gives employers significant flexibility. They can fire you because they do not like your attitude, because business is slow, because they found someone more qualified, or for no reason at all. They can also change your job duties, cut your pay, reduce your hours, or alter your benefits without your consent (though these changes may create other legal claims like constructive discharge or breach of contract).

However, at-will employment is not unlimited. Courts and legislators have recognized that completely unrestricted firing power would allow employers to violate fundamental rights and public policies. As a result, numerous exceptions to at-will employment have developed over time. These exceptions protect workers from terminations based on illegal discrimination, retaliation for exercising legal rights, violation of employment contracts, and actions that undermine important public policies.

Understanding at-will employment is important because many employers use it to discourage workers from pursuing legal claims. They may tell you "this is an at-will state" as if that ends the discussion. But at-will employment does not shield employers from liability for illegal terminations. If your firing violates federal or state anti-discrimination laws, retaliation protections, contract terms, or public policy, you have a wrongful termination claim even in an at-will state.

Courts have recognized three major categories of exceptions to at-will employment that protect workers from unfair termination.

Public Policy Exception

The public policy exception prohibits employers from firing workers for reasons that violate fundamental public policy. This is one of the most important protections for at-will employees. Examples include firing you for refusing to commit an illegal act (like falsifying documents or committing perjury), exercising a legal right (like filing a workers' compensation claim, taking jury duty, voting, or serving in the military), performing a legal duty or obligation (like responding to a subpoena or reporting to jury duty), or reporting illegal activity or safety violations (whistleblowing). The public policy exception protects conduct that society views as essential to maintaining legal and ethical standards. Most states recognize this exception, though the specific policies protected vary.

Implied Contract Exception

The implied contract exception protects employees when employer conduct creates an implied promise of continued employment or requires "good cause" for termination. Even without a written contract, courts may find an implied contract based on employee handbooks stating employees will only be fired "for cause," verbal promises of job security or long-term employment, patterns of conduct (like progressive discipline policies consistently applied), length of service combined with positive performance reviews, and industry customs or practices. If your employer created an implied contract through these mechanisms and then fired you without good cause, you may have a breach of contract claim. However, many employers now include disclaimers in handbooks explicitly stating that employment remains at-will. Courts examine the totality of circumstances to determine whether an implied contract exists.

Good Faith and Fair Dealing Exception

Some states recognize an implied covenant of good faith and fair dealing in employment relationships. This requires employers to deal fairly with employees and prohibits terminations in bad faith or motivated by malice. Examples include firing an employee to avoid paying earned commissions or bonuses, terminating someone shortly before pension benefits vest, firing an employee to replace them with a lower-paid worker after years of good service, or firing someone based on false accusations or fabricated performance issues. This exception is recognized in fewer states than the public policy or implied contract exceptions, but where it applies, it provides important protection against employer abuse of at-will employment.

State Variations

States vary in which exceptions they recognize and how broadly they apply them. California, New York, and New Jersey recognize all three exceptions and apply them relatively broadly. Some states recognize only the public policy exception. Montana does not follow at-will employment at all—after a probationary period, employers must have "good cause" to terminate employees. Check with an employment lawyer in your state to understand which exceptions apply and how they might protect you.

Federal and state laws prohibit employers from firing workers for specific illegal reasons. Even in at-will states, these terminations violate the law and give you grounds for a wrongful termination claim.

The amount you can recover in a wrongful termination case depends on your salary, how long you were unemployed, the type of wrongful termination, and the strength of your evidence. Statistics show that having a lawyer significantly increases both your chances of success and the amount you recover.

Types of Damages You Can Recover:

Back pay: Back pay: Lost wages from termination to judgment/settlement

Front pay: Front pay: Future lost earnings if you cannot be reinstated

Emotional distress: Emotional distress: Compensation for psychological harm

Punitive damages: Punitive damages: Punishment for egregious employer conduct

Attorney fees: Attorney fees: Often recoverable under employment laws

Proving wrongful termination requires establishing that your employer fired you for an illegal reason. The specific proof required depends on your type of claim.

General Elements to Prove:

• You were employed by the defendant
• You were performing your job satisfactorily
• You were terminated
• The termination was for an illegal reason (discrimination, retaliation, contract breach, or public policy violation)
• The termination caused you harm (lost wages, emotional distress)

Proving Discrimination:

To prove discrimination, you must show you are a member of a protected class, you were qualified for your position, you suffered an adverse employment action (termination), and the circumstances suggest discrimination. Evidence includes direct statements showing discriminatory intent, comparative evidence of similarly situated employees treated differently, suspicious timing (fired after complaining about discrimination), pretextual reasons that do not hold up under scrutiny, and statistical patterns showing disparate treatment.

Proving Retaliation:

To prove retaliation, you must show you engaged in protected activity (filing a complaint, reporting violations), your employer knew about the protected activity, you suffered an adverse action (termination), and there is a causal connection between the protected activity and termination. Timing is crucial—being fired shortly after protected activity creates a strong inference of retaliation. Courts recognize that few employers are foolish enough to admit retaliation, so circumstantial evidence is often sufficient.

Proving Breach of Contract:

To prove breach of contract, you must show an employment contract existed (written or implied), the contract required "good cause" for termination or guaranteed employment for a period, your employer terminated you, and the termination violated the contract terms. Evidence includes written contracts, employee handbooks, verbal promises documented in writing, patterns of conduct (progressive discipline always used), and length of service combined with positive reviews.

Strong evidence is critical to proving wrongful termination. Gather and preserve evidence immediately after termination.

Employment Documents:

• Employment contract or offer letter
• Employee handbook
• Performance reviews (especially positive reviews before termination)
• Emails, texts, and written communications with managers or HR
• Termination letter stating reason for firing
• Pay stubs and W-2s showing salary and lost wages
• Documentation of complaints to HR or management

Comparative Evidence:

• Information about similarly situated employees treated differently
• Evidence of others outside your protected class not fired for same conduct
• Statistical data showing patterns of discrimination
• Replacement information (who replaced you and their characteristics)

Witness Testimony:

• Coworkers who observed discrimination or retaliation
• Coworkers who can attest to your good performance
• Anyone who heard discriminatory statements by supervisors
• HR personnel involved in your termination

Timeline Documentation:

Create a detailed timeline noting dates, times, people involved, and what happened leading up to and after your termination. Document protected activity (complaints, leave requests), employer responses, performance reviews and discipline, changes in treatment after protected activity, and the termination itself. The more documentation you have, the stronger your case.

The process for filing a wrongful termination claim depends on the type of claim.

Wrongful termination claims have strict statutes of limitations. Missing a deadline permanently bars your claim.

While not legally required, hiring an employment lawyer significantly increases your chances of success and the amount you recover.

Advantages of Hiring Lawyer:

• Knows which claims apply to your situation
• Gathers and preserves evidence properly
• Files administrative charges before deadlines
• Negotiates effectively with employers and insurance
• Handles litigation if settlement fails
• Recovers attorney fees from employer (under many employment laws)
• Maximizes damages and settlement value
• Provides realistic case evaluation

Cost and Fee Structure:

• Most employment lawyers work on contingency (typically 30-40% of recovery)
• No upfront costs or hourly fees
• Free initial consultation to evaluate case
• Many employment laws allow recovery of attorney fees separately from damages
• You only pay if you win