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Wrongful Termination Claims: Understanding, Types, and Real Cases

Last updated 03/15/2024 by

Bamigbola Paul

Edited by

Fact checked by

Summary:
Wrongful termination claims are legal actions filed by employees who believe they were unjustly or illegally fired. This article provides a detailed overview of what constitutes a wrongful termination claim, the different types of claims, how to file them, and what employees need to know to protect their rights. understanding wrongful termination is crucial for both employers and employees to ensure fair and legal employment practices.

Understanding wrongful termination claims

Wrongful termination is a legal term used to describe the unjust or illegal firing of an employee by their employer. It occurs when an employer’s actions violate federal or state antidiscrimination laws, oral and written employment agreements/contracts, labor laws, including collective bargaining laws or whistleblower laws. Employees who believe their termination was a result of sexual harassment or in retaliation for filing a complaint against their employer can also file a wrongful termination claim.
Employment in most states in the United States is considered “at-will,” meaning that employers are not required to have a reason for firing an employee and are not obligated to provide advance notice of termination. However, this doesn’t mean that businesses have complete discretion in firing employees, especially if it violates state or federal laws or breaches an employment contract.
When employees believe their dismissal is a violation, they have the option to file a wrongful termination claim against their employer. This claim is essentially a lawsuit brought by the employee against their former company, seeking compensation for the unjust firing.

Compensation for wrongful termination

If an employee prevails in their wrongful termination claim, they may be entitled to compensation, which can include monetary damages based on lost wages, job hunting costs, and other related expenses. Employees can also request to have their job restored or be provided with a comparable position. Depending on the grounds of the claim, the employer may face statutory penalties.

Types of wrongful termination claims

Employees can file wrongful termination claims on various grounds, including:

1. Discrimination

Wrongful termination claims based on discrimination may arise when someone is fired because of their race, color, religion, sex (including pregnancy, sexual orientation, or gender identity), national origin, age (40 or older), disability, or genetic information (including family medical history). These claims fall under the purview of the U.S. Equal Employment Opportunity Commission (EEOC), which outlines the process for filing a charge of employment discrimination.

2. Retaliation

Retaliation claims involve employers illegally punishing workers for reporting wrongful activities, such as criminal activity at work, a situation known as whistleblower protection. It is also not lawful to terminate a worker for simply filing a workers’ compensation claim, provided the claimant can prove that the termination was retaliatory and not based on work performance or other permitted reasons.

3. Medical history

Under the Genetic Information Nondiscrimination Act (GINA), employers are prohibited from using genetic information when dealing with employees or making employment decisions, including hiring and firing. “Using genetic information” includes testing for a candidate or employee’s risk of developing certain diseases or inquiring about family medical history.

4. Organizing

While an employer may have grounds to fire an individual for complaining about an employer or boss, the National Labor Relations Act (NLRA) protects workers engaged in “concerted activity” to improve wages or working conditions, such as organizing a labor union or campaigning for an existing union in their workplace. Workers need not already be in a union to be covered by this protection.

5. Lack of cause

Employees under a contract that requires cause for their termination but do not receive one may be eligible to file a wrongful termination claim. This type of claim is a contractual breach rather than a violation of a law or statute. The contract must specify that the individual can only be fired “for cause,” meaning that a reason for the dismissal must be noted, and it must fall under certain categories of behavior or actions, such as willful misconduct or deliberate neglect of job duties.

How to file a wrongful termination claim

Employees who believe they have been terminated unlawfully should take specific steps to protect their rights:

1. Review your employment agreement

It’s essential to read the original employment agreement or contract to understand your rights and obligations. Ensure that all conditions and promises made concerning your employment and dismissal were met.

2. Avoid signing severance agreements hastily

Avoid hastily signing any severance agreement, especially if it includes clauses that require you to waive your rights to file a wrongful termination claim or seek legal redress. Seek legal advice before signing any such agreements.

3. Consult with an attorney

If you believe you’ve been unlawfully terminated, consult with an attorney, preferably one with expertise in labor law or employment rights. They can assess your situation, provide guidance, and help you determine the best course of action. Keep in mind that there are deadlines for filing claims under state and federal laws.

4. Obtain personnel files

If possible, obtain copies of your personnel files. These documents may contain information about the responsible parties for your termination and any related documents, such as warning letters, status reports, or performance reviews. This information can be valuable when discussing your case with an attorney.

Wrongful termination claim examples

Understanding wrongful termination claims is easier with real-world examples. Here are a few scenarios that illustrate what might constitute a wrongful termination:

1. Discrimination example:

An employee named Sarah is fired after she announced her pregnancy. Her employer claims it was due to restructuring, but Sarah believes it’s pregnancy discrimination. She files a wrongful termination claim with the EEOC, alleging that her termination was based on her pregnancy.

2. Retaliation example:

John works for a company and reports his supervisor for embezzlement. Shortly after, he’s terminated, with the company stating that it’s due to downsizing. John believes it’s retaliation for reporting the wrongdoing. He files a wrongful termination claim, seeking protection under whistleblower laws.

3. Lack of cause example:

Mary has been an exemplary employee with a spotless record. However, she’s suddenly fired without explanation. Her employment contract clearly states that she can only be terminated for cause, with specific reasons outlined. Mary believes the termination violates her contract, and she files a wrongful termination claim based on a breach of contract.

Protecting your rights

Employees can take proactive steps to protect themselves against wrongful termination:

1. Document your employment

Maintain a record of your employment, including performance evaluations, commendations, and any communication related to your job. This documentation can be vital in case you need to prove your value as an employee in a wrongful termination claim.

2. Seek legal advice

If you suspect you’ve been wrongfully terminated, consult with an attorney who specializes in employment law. They can assess your situation, provide guidance, and help you determine the best course of action.

3. Know your rights

Familiarize yourself with state and federal employment laws, as well as your employment contract. Understanding your rights and obligations can help you make informed decisions and protect your interests.

4. File a complaint

If you believe you’ve been wrongfully terminated, consider filing a complaint with the appropriate government agency, such as the EEOC. This step can initiate an investigation into your claim and help protect your rights.

Conclusion

Understanding wrongful termination claims is essential for both employees and employers to ensure fair and legal employment practices. Employees who believe they’ve been unjustly or illegally fired should be aware of their rights and take appropriate steps to protect their interests. Employers should also be diligent in adhering to employment laws and regulations to avoid wrongful termination claims.

Frequently asked questions

What should I do if I believe I’ve been wrongfully terminated?

If you believe you’ve been wrongfully terminated, the first step is to consult with an attorney who specializes in employment law. They can assess your situation, provide guidance, and help you determine if you have a valid claim. It’s essential not to sign any severance agreements hastily, especially if they require you to waive your rights to file a wrongful termination claim.

Is it possible to file a wrongful termination claim based on discrimination?

Yes, it is possible to file a wrongful termination claim based on discrimination. If you believe you were fired because of your race, color, religion, sex, national origin, age, disability, or genetic information, you may have grounds for such a claim. It’s important to understand the specific antidiscrimination laws and regulations that apply in your case.

What should I do if I believe I was terminated in retaliation for reporting wrongdoing at work?

If you suspect you were terminated in retaliation for reporting wrongdoing at work, you may have a valid claim under whistleblower protection laws. Consult with an attorney to assess your situation and determine the best course of action. It’s crucial to gather any evidence or documentation related to the reported wrongdoing and your termination.

Can I file a wrongful termination claim if I was terminated without cause?

If your employment contract specifies that you can only be terminated for cause and you were fired without cause, you may be eligible to file a wrongful termination claim based on a breach of contract. Consult with an attorney to review your contract and assess the validity of your claim.

What steps can employers take to avoid wrongful termination claims?

Employers can take proactive steps to prevent wrongful termination claims by adhering to employment laws and regulations. It’s essential to maintain clear and consistent communication with employees, document performance evaluations and commendations, and ensure that all employment agreements are followed. Training and educating managers and supervisors on employment laws and best practices can also help prevent wrongful termination claims.

Key takeaways

  • Wrongful termination claims result from unjust or illegal employee firings.
  • Claims may be based on discrimination, retaliation, medical history, organizing, or a lack of cause.
  • Employees should consult with an attorney before signing any severance agreements.
  • Understanding employment laws is crucial for both employees and employers to prevent wrongful termination claims.

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