What Counts as Wrongful Termination Under Employment Law?

Losing a job is never easy, but when a termination is unjust or illegal, it can have serious financial, professional and even psychological consequences. While most U.S. employees work under at-will employment, meaning they can be terminated at any time and for almost any reason, many federal- and state-level protections prevent employers from firing workers unfairly.

But what constitutes wrongful termination under employment law, and what resources do employees have to protect themselves from this unfortunately all-too-common scenario?

Understanding Wrongful Termination in Employment Law

Wrongful termination occurs when an employer fires an employee for an unlawful reason, violating federal, state, or local laws, or breaching an employment contract. While at-will employment gives employers broad discretion to dismiss workers, they cannot fire an employee for illegal reasons, such as discrimination, retaliation, or exercising protected rights.

At the federal level, Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA) and the Age Discrimination Employment Act (ADEA) all serve to protect employees when their employer has a workforce of 15 or more employees (20 or more in the case of the ADEA). In New York state, employees have even stronger protections under the New York State Rights Law (NYSHRL), which applies to all employers with four or more employees, a lower threshold than that established by federal law. New York state law also provides for protections for whistleblowers against retaliation under the New York Labor Law and recognizes implied contracts and company policies as potential grounds for wrongful termination claims.

Common Types of Wrongful Termination Claims

Most wrongful termination cases fall into one of the below four categories, each with legal protections at the federal and state levels. However, it is always important when faced with a termination to seek legal counsel. There are various federal and state laws and complaint processes, beyond those well-known and cited above, which could apply to your situation and may become obvious at the time of a consult. While some cases are clear-cut, others may require substantial evidence to prove employer misconduct. Here is more detail on some of the most common types of claims for which individuals have been wrongly dismissed from their jobs:

Discrimination-based termination

• Race, color, or national origin.
• Gender, sexual orientation, or gender identity.
• Pregnancy or physical/mental disability.
• Religion or marital status.

Retaliation-based termination

• Filing workplace complaints (e.g. discrimination, sexual harassment, wage violations).
• Reporting a hostile work environment or unsafe working conditions to OSHA or other authorities.
• Refusing to participate in illegal acts at an employer’s request.
• Participating in legal proceedings or investigations against an employer.

Breach of employment contract

• Dismissing an employee without just cause, despite contract terms requiring it.
• Dismissing an employee without following contract terms of notification.
• Terminating an employee before the contract’s end date without valid reasoning.

Violation of public policy

• Taking medical leave under the Family and Medical Leave Act (FMLA).
• Filing a workers’ compensation claim for a workplace injury.
• Serving on a jury or taking time off to vote.
• Serving in the military or National Guard.

Important Notes on Retaliation and Wrongful Termination

Employers are absolutely prohibited from retaliating against employees for participating in legally protected activities. This includes filing complaints about sexual harassment, reporting safety violations, or taking medical leave. In New York, retaliation claims can be filed with the New York State Division of Human Rights (NYSDHR), directly in state court or federally with the Equal Employment Opportunity Commission (EEOC). Beyond these common types of retaliation claims, there may be other complaints which can be filed to challenge actions by your employer — like health and safety violations, reporting pay issues or failures, Medicare/Medicaid fraud, and even violations of Security and Exchange Commission (SEC) rules.....Continue Reading

Amanda Smith, Esq., is a Partner in Tully Rinckey PLLC’s Buffalo office, where she focuses her practice on Federal and State Employment and Labor Law.

She can be reached at info@tullylegal.com or at (888) 978-1725.