Wrongful Termination: What It Is and What It Is Not

Many employees believe that if they were fired unfairly, they must have a legal claim. Unfortunately, that is not always true. In the United States, most workers are employed under the “at-will” rule. However, there are clear limits set by law. Understanding the difference between unfair termination and illegal (wrongful) termination can help you know when to take action and when you may just need to move forward in your career.

What Is Wrongful Termination?

Wrongful termination occurs when an employee is fired in violation of federal, state, or local employment laws. In other words, the firing is not just unfair, it is unlawful. Examples of wrongful termination include:

• Discrimination: Being terminated because of race, gender, national origin, age (40 or older), disability, pregnancy, religion, or another legally protected category.

• Retaliation: Being fired for reporting harassment, unsafe working conditions, wage theft, or other legal violations.

• Protected Leave: Being terminated for taking Family and Medical Leave Act (FMLA) leave, jury duty, or military leave.

• Whistleblowing: Being fired for reporting illegal or unethical company practices to authorities or regulators.

• Contract Violations: If you have an employment contract or a union agreement that requires “just cause” for termination, being fired without following that process can be wrongful termination.

The Key Difference: Unfair vs. Illegal

• Unfair termination means the decision feels unjust, biased, or poorly communicated, but no law was broken.

• Illegal termination (wrongful termination) means the firing violated specific workplace rights or protections.

Here are examples of terminations that are usually legal under at-will employment, along with scenarios where they could cross the line into wrongful termination:

• Being let go due to company restructuring or downsizing

  
  

  • Legal Example: A company merges with another and eliminates duplicate roles in accounting. Several employees, including both new and long-time staff, are laid off. The decision is based on business needs, not targeting anyone personally.

  • Illegal Example: A company announces downsizing but only lays off older workers over the age of 50 while keeping younger employees in the same positions. If age is the real factor, that is age discrimination and could qualify as wrongful termination.

• Termination for poor performance, even if you disagree with the evaluation

  
  

  • Legal Example: An employee consistently misses project deadlines and their manager documents the missed deadlines. The employee believes they were doing their best and disagrees with the assessment, but the employer still has the right to terminate based on performance concerns.

  • Illegal Example: An employee misses deadlines but also recently reported a wage violation to HR. Shortly after making the complaint, they are fired under the label of “performance problems.” If performance was not the real reason and retaliation is, this may be wrongful termination.

• Being fired for having a negative attitude or not fitting in with the company culture

  
  

  • Legal Example: An employee frequently argues with colleagues during meetings and refuses to follow team decisions. Management lets the employee go because the behavior disrupts collaboration. This is generally lawful.

  • Illegal Example: An employee is told they “do not fit in” after coming back from maternity leave. If “not fitting in” is being used as a cover for bias against the employee’s pregnancy status, that could be pregnancy discrimination and unlawful.

• Termination without explanation

  
  

  • Legal Example: An employee is called into a meeting and told, “This just is not the right fit,” without further detail. Unless the true reason is discriminatory or retaliatory, lack of explanation alone is legal under at-will employment.

  • Illegal Example: An employee who recently requested disability accommodations is suddenly terminated with no reason given. If the real motive is related to the disability request, the termination could be unlawful discrimination.

How to Protect Yourself

If you are worried about being fired or believe your termination was wrongful, here are steps you can take:

• Document everything: Keep copies of emails, performance reviews, and notes from meetings.

• Know your rights: Review your company handbook and understand federal and state employment laws.

• File internal complaints in writing: If you report discrimination or harassment, keep a written record of the complaint.

• Seek legal advice: If you suspect your termination was unlawful, consult an employment attorney. Even a short consultation can help you evaluate your situation.

What To Do Immediately After Being Fired

1. Ask for the reason: If your employer does not give one, note that fact.

2. Collect your documents: Save your termination letter, pay stubs, and benefits information.

3. Write down details: Document the events leading up to your termination, including dates and conversations.

4. Consider your options: Decide whether to pursue legal advice, file a claim, or simply focus on your next career step.

Key Takeaways

• Wrongful termination is about legality, not just fairness.

• Being treated unfairly is not always the same as being treated unlawfully.

• You are protected against termination based on discrimination, retaliation, protected leave, whistleblowing, or violations of an employment contract.

• Documentation and awareness of your rights are your best tools for protection.

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