What Is Wrongful Termination?

Wrongful termination occurs when an employer fires an employee for a reason that is illegal under federal or state law. Despite the term, most firings — even unfair ones — are not legally wrongful. In most states, employment is at-will, meaning employers can terminate employees for any reason or no reason at all. Wrongful termination refers to the specific situations where firing violates the law.

What Makes a Termination Wrongful

Discrimination — federal law prohibits firing an employee because of their race, color, national origin, sex, religion, age if 40 or older, disability, or genetic information. Many states extend protections to sexual orientation, gender identity, marital status, and pregnancy.

Retaliation — it is illegal to fire an employee for engaging in legally protected activity: reporting discrimination or harassment, filing a workers' compensation claim, taking FMLA leave, reporting illegal activity, or refusing to participate in illegal conduct.

Violation of an employment contract — if you have an employment contract that restricts when and how you can be terminated, firing you in violation of those terms is wrongful.

Violation of public policy — most states prohibit firing employees for reasons that violate a fundamental public policy, such as refusing to break the law, performing jury duty, or taking military leave.

What Is Not Wrongful Termination

Being fired for performance issues, incompatibility, restructuring, or simply because the employer does not like you — however unfair — is generally not wrongful termination in an at-will state. The law does not require employers to be fair or consistent. It only prohibits firing for illegal reasons.

What You Can Do

Act quickly. Most wrongful termination claims must be filed within 180-300 days with the EEOC before you can file a lawsuit. Missing these deadlines typically bars your claim permanently. Preserve all documentation before your access to company systems is revoked.