Guide

The Complete Guide to Wrongful Termination Claims

Everything you need to know about wrongful termination: what qualifies, how to prove it, and what compensation you may be entitled to.

June 12, 202514 min read

What Is Wrongful Termination?

Wrongful termination occurs when an employer fires an employee in violation of federal or state law, a written or implied employment contract, or public policy. Despite the prevalence of at-will employment in the United States, there are significant legal limits on an employer's ability to terminate workers. Understanding these limits is essential for any employee who believes they were fired unfairly or illegally.

At-Will Employment vs. Wrongful Termination

Most employment in the United States is "at-will," meaning either the employer or employee can end the relationship at any time, for any reason or no reason. However, at-will employment has critical exceptions. An employer cannot fire you for a discriminatory reason, in retaliation for exercising your legal rights, in violation of a contract, or for refusing to break the law.

Common Types of Wrongful Termination

Discrimination-based termination is one of the most common forms, where an employee is fired because of race, sex, age, disability, religion, national origin, or other protected characteristics. Retaliation-based termination occurs when an employer fires someone for filing a complaint, participating in an investigation, or engaging in whistleblowing. Contract-based claims arise when an employer breaches an express or implied agreement. Public policy violations involve firing someone for refusing to do something illegal.

How to Prove Wrongful Termination

Proving a wrongful termination claim typically requires showing that you were employed, you were terminated, the termination was motivated by an illegal reason, and you suffered damages as a result. Direct evidence such as discriminatory comments, emails, or written policies is the strongest proof. More often, employees rely on circumstantial evidence: being treated differently from similarly situated coworkers, being fired shortly after engaging in protected activity, receiving pretextual reasons for termination, or having your position immediately filled by someone outside your protected class.

Key Federal Laws That Protect You

Title VII prohibits discrimination based on race, color, religion, sex, and national origin. The ADA protects employees with disabilities. The ADEA covers workers 40 and older. The FMLA protects employees who take qualified medical or family leave. The FLSA protects employees from retaliation for wage complaints. The Sarbanes-Oxley Act and Dodd-Frank Act protect corporate whistleblowers.

Damages You May Recover

If your wrongful termination claim succeeds, you may be entitled to back pay, front pay, compensatory damages for emotional distress, punitive damages in cases of egregious conduct, and attorney's fees. The specific damages depend on the legal basis of your claim and the severity of the employer's conduct.

Steps to Take After Being Fired

Request a written reason for your termination. Collect and preserve any evidence. File for unemployment benefits immediately. Avoid signing any severance agreements or releases without legal review. Consult with an employment attorney as soon as possible, as strict filing deadlines apply to most claims.

When to Hire a Wrongful Termination Lawyer

You should consult a lawyer if you were fired after reporting discrimination or harassment, shortly after returning from medical leave, or for refusing to engage in illegal activity. Most employment attorneys offer free initial consultations and handle wrongful termination cases on contingency.

Need Legal Help With Your Situation?

This guide is for informational purposes. For advice specific to your situation, get a free consultation with an experienced employment attorney.

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