Can You Sue a Job for Wrongful Termination? Here’s What to Know
Understand the legal and practical considerations involved in pursuing a wrongful termination claim, including key factors that influence your case.
Losing a job can be stressful, especially if you believe the termination was unfair. While most employment in the United States is “at-will,” meaning employers can typically fire workers without providing a reason, significant legal exceptions protect employees from termination based on illegal grounds. Determining if a firing constitutes wrongful termination under the law is crucial before considering legal action.
Grounds for Legal Action
Although employers possess considerable latitude in termination decisions under the “at-will” doctrine, federal and state laws establish critical exceptions. These laws define specific reasons for termination that are illegal and can form the basis of a wrongful termination lawsuit, ensuring employees are not dismissed for reasons violating fundamental rights or public policy.
Discrimination based on protected characteristics is a primary category of illegal termination. Federal laws, including Title VII of the Civil Rights Act of 1964, prohibit firing employees based on race, color, religion, sex (encompassing pregnancy, sexual orientation, and gender identity), or national origin.1U.S. Equal Employment Opportunity Commission. Title VII of the Civil Rights Act of 1964 The Age Discrimination in Employment Act protects workers aged 40 and older, while the Americans with Disabilities Act forbids terminating qualified employees due to a disability if they can perform essential job functions with or without reasonable accommodation.2U.S. Equal Employment Opportunity Commission. The Americans with Disabilities Act of 1990 Firing someone based on these statuses violates federal law.3U.S. Equal Employment Opportunity Commission. The Age Discrimination in Employment Act of 1967
Retaliation is another major basis for legal action. Employers cannot legally fire employees for engaging in protected activities. Such activities include filing a discrimination or harassment complaint with the Equal Employment Opportunity Commission (EEOC) or a state agency, participating in related investigations, or reporting illegal employer activity (whistleblowing). Laws like the Whistleblower Protection Act shield employees reporting violations.4U.S. Department of Labor. Whistleblower Protection Program Taking legally protected leave, such as under the Family and Medical Leave Act (FMLA), is also protected, and termination for requesting or using FMLA leave is illegal.5U.S. Department of Labor. Family and Medical Leave Act
Termination can also be wrongful if it breaches an employment contract. While many workers are employed at-will, some have written or implied contracts outlining employment terms, including conditions for termination. A written contract might require “just cause” for firing or mandate specific disciplinary steps. An implied contract could stem from employer statements, handbook policies promising certain procedures, or established company practices. Violating these contractual terms can lead to a wrongful termination suit for breach of contract.
The public policy exception allows lawsuits if a termination contravenes a clear societal principle. Recognized by most states, this doctrine prevents firing employees for reasons like refusing to commit an illegal act (such as perjury), exercising a statutory right (like filing a workers’ compensation claim or voting), or fulfilling a public duty (like jury service). Terminations undermining these policies can be challenged as wrongful.
Evidence Requirements
Successfully pursuing a wrongful termination claim requires sufficient proof that the firing was unlawful. In civil lawsuits, the employee (plaintiff) typically has the burden of proof, needing to convince the court or jury that the claim is valid based on the evidence. The standard is usually the “preponderance of the evidence,” meaning the employee must show it is more likely than not (over 50% probability) that the termination occurred for an illegal reason.
Gathering persuasive evidence is essential. Direct evidence, such as emails or statements from a supervisor explicitly citing an illegal reason (like age or reporting harassment), directly proves the motive without inference. Witness testimony corroborating such statements also counts as direct evidence, though this type is uncommon.
Consequently, many cases depend on circumstantial evidence, which allows for an inference of an illegal motive. Suspicious timing, like being fired shortly after filing a discrimination complaint or taking FMLA leave, can suggest retaliation. Comparative evidence, showing that similarly situated employees outside the protected class were treated more favorably, can indicate discrimination. If employees who didn’t engage in protected activities but committed similar infractions faced lesser consequences, it supports an inference of an unlawful motive.
Documentation is crucial. Employment records like performance evaluations (especially positive ones preceding the issue), pay stubs, timesheets, contracts, and offer letters provide context. Company policies and handbooks are relevant, particularly if the employer deviated from established termination procedures. Communications like emails regarding performance, complaints, or the termination itself should be preserved. Detailed personal notes documenting relevant events can also be valuable.
The collected evidence must establish a causal link between the illegal reason (discrimination, retaliation, etc.) and the termination. The employee needs to show the unlawful motive was a substantial factor in the decision. Demonstrating that the employer’s stated reason for termination is false or inconsistent (pretextual) strengthens the inference that the true reason was unlawful, helping meet the required standard of proof.
Employer Arguments
Employers facing wrongful termination lawsuits typically present defenses to justify their decision. A common argument invokes the “at-will” employment principle, asserting the right to terminate for any reason, or no reason, as long as it is not illegal. The employer might argue the termination, while perhaps perceived as unfair, was permissible because it did not violate specific laws against discrimination or retaliation.
A frequent defense strategy is presenting a legitimate, non-discriminatory, and non-retaliatory reason for the firing. Employers often cite documented poor job performance, failure to meet standards, or employee misconduct like policy violations, insubordination, or absenteeism. Under laws like Title VII, decisions based on performance or conduct are permissible if applied consistently and not used as a pretext for discrimination. The employer will provide evidence, such as performance reviews or disciplinary records, to support this legitimate reason.
In discrimination cases lacking direct evidence, the legal process may follow a burden-shifting framework established in McDonnell Douglas Corp. v. Green.6Justia US Supreme Court Center. McDonnell Douglas Corp. v. Green, 411 U.S. 792 (1973) If an employee initially suggests discrimination, the burden shifts to the employer to state a legitimate reason. If successful, the burden returns to the employee to prove this reason is a pretext. The employer argues their stated reason is genuine and reflects honest business judgment.
Employers might also use the “business necessity” defense, particularly if a policy disproportionately affects a protected group. This defense requires showing the policy is job-related and essential for safe and efficient operations. For instance, specific physical requirements for a demanding job might be defended if directly linked to performing essential functions safely.
The “after-acquired evidence” defense can arise if the employer discovers employee misconduct after the termination but during legal proceedings. If the employer learns the employee falsified credentials or engaged in serious misconduct, they might argue this would have led to termination anyway. While not a complete defense, it can limit the employee’s potential remedies.
Employers may also challenge the lawsuit on procedural grounds, arguing the employee failed to follow required steps, such as exhausting internal grievance procedures or filing a timely charge with the EEOC or a state agency within the statute of limitations. A successful procedural challenge could lead to dismissal before the case’s merits are considered.
Damages and Compensation
If a wrongful termination lawsuit succeeds, courts aim to award remedies to make the employee “whole,” restoring them to the financial position they would have occupied without the illegal firing.7U.S. Equal Employment Opportunity Commission. Remedies For Employment Discrimination This typically involves monetary awards, known as damages.
“Back pay” is a significant component, covering lost wages, salary, bonuses, commissions, and the value of benefits (like health insurance) from the termination date to the judgment date. Employees usually have a duty to mitigate damages by seeking comparable employment; earnings from a new job are typically deducted from back pay.
If reinstatement isn’t feasible, a court might award “front pay” to compensate for projected future lost earnings and benefits for a reasonable period. This covers the anticipated time needed to find similar work or reach the previous earning level.
Employees may also recover compensatory damages for non-economic harm, such as emotional distress, mental anguish, inconvenience, loss of enjoyment of life, or reputational damage caused by the illegal firing. Proving emotional distress often involves testimony detailing the psychological impact.
In cases of particularly egregious employer conduct involving intentional discrimination or retaliation with malice or reckless indifference, punitive damages may be awarded. These damages punish the employer and deter future misconduct. The standard for punitive damages is higher, requiring proof of the employer’s culpable state of mind.
Federal laws like Title VII and the ADA cap the combined amount of compensatory (for emotional harm) and punitive damages based on employer size, ranging from $50,000 to $300,000.8U.S. Equal Employment Opportunity Commission. Damages Under Title VII of the Civil Rights Act of 1991 These caps do not limit back pay or front pay. Some laws, like the ADEA, generally don’t allow compensatory or punitive damages but may permit “liquidated damages” (often equal to back pay) for willful violations. Claims under certain statutes, like 42 U.S.C. Section 1981 for race discrimination, lack these federal caps. Successful plaintiffs often recover reasonable attorney’s fees and court costs.
Timeline for Lawsuits
Understanding the strict time limits, or statutes of limitations, for challenging a termination is critical. Missing these deadlines can permanently bar a wrongful termination claim. The applicable timeframe depends on the legal basis of the claim.
For many federal discrimination or retaliation claims under Title VII, the ADA, or the ADEA, employees must first file a formal complaint (“charge”) with the U.S. Equal Employment Opportunity Commission (EEOC) or a corresponding state agency (FEPA). This charge generally must be filed within 180 calendar days of the unlawful employment action.9U.S. Equal Employment Opportunity Commission. Time Limits For Filing A Charge The deadline extends to 300 days if the state has its own anti-discrimination laws and enforcement agency. The clock typically starts from the date the employee received clear notice of termination.
After a charge is filed, the EEOC notifies the employer and may offer mediation or investigate.10U.S. Equal Employment Opportunity Commission. What You Can Expect After You File a Charge If the EEOC does not resolve the case or finds insufficient evidence, or if 180 days pass, it issues a “Notice of Right to Sue.” Upon receiving this notice, the employee generally has only 90 days to file a lawsuit in federal court under the relevant statute.11U.S. Equal Employment Opportunity Commission. Filing a Lawsuit This deadline is strictly enforced. For ADEA claims, while an EEOC charge is required, a lawsuit can be filed 60 days after filing the charge, but no later than 90 days after receiving notice that the EEOC investigation concluded.
Timelines differ for claims based on breach of contract or violation of public policy, which are governed by state law. Statutes of limitations vary by jurisdiction. For written contracts, the limit might be three to ten years or more from the breach date. For oral or implied contracts, it’s often shorter, around two to four years. Public policy violation claims (torts) typically have limits of one to three years. Claims under the FMLA must generally be filed within two years of the alleged violation (three years if willful) and usually do not require an EEOC charge first. Understanding the precise deadlines for your specific situation is essential.
When to Seek Legal Help
Considering legal consultation after job loss is important if you feel the termination was unfair or potentially unlawful. Suspecting the firing relates to race, gender, age (40+), religion, disability, national origin, or another protected status warrants considering legal advice. Likewise, if termination followed a legally protected action—like reporting harassment, taking FMLA leave, participating in a discrimination investigation, or whistleblowing—it could indicate unlawful retaliation, justifying discussion with a lawyer.
The complexity of employment law often necessitates consultation. Determining if a situation constitutes illegal discrimination, retaliation, breach of contract, or a public policy violation requires nuanced legal analysis. An employment lawyer can interpret the facts against relevant laws and precedents, assessing if the stated reason for termination seems legitimate or potentially pretextual. This is relevant if the reason contradicts your work record or if company policies appear inconsistently applied.
Understanding the procedural requirements for challenging a termination can be difficult. Claims under federal anti-discrimination laws often require filing a charge with agencies like the EEOC before suing. An attorney can explain these processes, ensure compliance, and advise on the case’s potential strengths and weaknesses based on evidence and legal standards.
Consulting a lawyer clarifies options and potential outcomes. An attorney can explain available remedies, helping you decide if legal action aligns with your goals. They can also discuss alternatives like negotiating severance or settlement. Many employment lawyers offer initial consultations to review termination details and provide a preliminary assessment, enabling you to understand your rights and make an informed decision.
