Wrongful termination, also known as wrongful discharge or unjust dismissal, occurs when an employee’s dismissal violates federal or state anti-discrimination laws, public policy, an implied or actual employment contract, or an implied covenant of fair dealing and good faith. This legal action allows the affected employee to seek redress and possibly compensation for the unjust dismissal.
Legal Basis of Wrongful Termination
Federal and State Anti-Discrimination Laws
Under laws such as Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA), and various state laws, it is illegal to dismiss an employee based on race, color, religion, sex, national origin, disability, or other protected characteristics.
Public Policy Violations
Public policy claims arise when an employee is terminated for engaging in activities that are beneficial or required by society, such as serving on a jury, reporting illegal activities (whistleblowing), or refusing to engage in illegal activities.
Employment Contracts: Implied and Actual
Some terminations breach explicit employment contracts, while others may violate implied contracts. An implied contract can be established through employer representations or employee handbooks that suggest job security.
Covenant of Good Faith and Fair Dealing
In some states, there is an implied covenant of good faith and fair dealing in employment relationships. This can be violated if an employer dismisses an employee to avoid paying benefits or commissions owed.
Types of Wrongful Termination
Discriminatory Termination
Occurs when an employee is terminated based on membership in a protected class, such as race, gender, or age.
Retaliatory Termination
Happens when an employee is dismissed for engaging in legally protected activities, such as filing a discrimination complaint or asserting their rights under labor laws.
Constructive Discharge
When an employer makes working conditions so intolerable that an employee feels forced to resign, it may be considered a form of wrongful termination.
Breach of Contract Termination
Occurs when an employer dismisses an employee in violation of the terms stipulated in an employment contract.
Historical Context
Wrongful termination as a legal concept has evolved significantly since the early 20th century. Initially, employment was governed by the “at-will” doctrine, allowing employers to terminate employment for any reason. However, through various legislative actions and judicial decisions, protections against unjust dismissals have been significantly expanded.
Examples and Case Studies
- An employee dismissed shortly after reporting a company’s illegal dumping practices to environmental authorities might have a case for retaliatory termination.
- An employee with an established employment contract guaranteeing job security dismissed without cause may pursue a breach of contract claim.
- An individual dismissed after refusing to perform illegal activities demanded by their employer could claim wrongful termination under public policy violations.
Comparisons with Related Terms
At-Will Employment
Most employment in the United States is “at-will,” meaning either party can terminate the employment relationship without cause. Wrongful termination is an exception to at-will employment when the dismissal violates legal protections.
Layoffs
Layoffs generally involve the termination of employees due to economic reasons, restructuring, or other business needs and are not considered wrongful if they follow legal guidelines and do not discriminate.
FAQs
Q1: Can I file a wrongful termination claim if I am an at-will employee?
Q2: What evidence is needed to prove wrongful termination?
Q3: How long do I have to file a wrongful termination lawsuit?
Summary
Wrongful termination is a complex area of employment law that protects employees from unjust dismissal. Understanding the legal basis, types, and examples of wrongful termination can help both employers and employees act within the law and know their rights. By ensuring fair practices and adherence to legal standards, wrongful termination disputes can be minimized, fostering a more equitable and just workplace environment.
