What Is Wrongful Termination? 5 Examples

In most cases, wrongful termination happens when an employer illegally fires someone by violating employment laws or public policies. It can also refer to situations where the employer breaches its own workplace agreements with the employee. In either case, individuals who have been wrongfully terminated should consult an employment attorney to discuss their options—and we’ll explain the steps to consider in the sections below. 

What is wrongful termination?

Most employees in the U.S. work “at-will,” meaning their employer can let them go without providing a reason or prior notice. However, this doesn’t give employers complete freedom in their decisions—they must still follow all applicable federal and state employment laws. 

If the employer disregards these laws and fires someone in a way that violates their rights, it's considered wrongful termination. In addition, wrongful termination can occur when employers don’t honor the following: 

• Termination policies and procedures, such as required evaluation periods or disciplinary steps
• Employment contracts that guarantee specific terms or protections, like severance pay or duration of employment

Whether the employer violates company policies or breaks the law, employees may pursue remedies through legal action, including reinstatement, back pay, or damages. 

5 examples of wrongful termination

Here are some examples of wrongful termination where employers violate specific employment laws or public policies: 

Termination due to discrimination

Laws enforced by the Equal Employment Opportunity Commission (EEOC) protect workers from being fired due to discrimination. These laws—including Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA), and the Age Discrimination in Employment Act (ADEA), among others—cover the following protected classes:

• Race, color, and national origin
• Religion
• Sex (including pregnancy, sexual orientation, and gender identity)
• Age (40 years or older)
• Disability or genetic information

It’s important to note that Title VII of the Civil Rights Act, which covers most protected classes except age and disability, only applies to employers with 15 or more employees.

In order to prove job discrimination, the employee must show that their protected characteristic was a motivating factor in their employer’s decision to fire them. For example, if an employer fired an employee shortly after learning that they’re pregnant, or if an employer made discriminatory comments about a worker’s religious views before firing them, this can be used to prove that the termination decision was made with discriminatory intent. 

Moreover, many states have additional protections that go beyond federal anti-discrimination laws, such as protecting workers from discrimination based on marital or family status.

Termination due to union activity

The National Labor Relations Act (NLRA) protects employees’ rights to form, join, or assist labor unions. Employers can’t fire workers for exercising these rights, including the following activities:

• Participating in union creation efforts
• Attending union meetings
• Signing union authorization cards
• Supporting a union’s cause, even if they’re not a member 

Importantly, these protections apply whether or not a union already exists in your workplace. The NLRA also protects “concerted activities,” meaning you can’t be fired for attempting to improve working conditions with your coworkers, even if these efforts aren’t part of formal union organizing. 

This means discussions about wages, benefits, or safety concerns with coworkers are protected, whether at work, outside of work hours, or through electronic communications. 

Termination due to refusing to violate public policy

Employers can’t fire employees for refusing to engage in activities that violate laws, regulations, or widely accepted ethical standards. Here are some examples. 

• Breaking the law: Falsifying financial records, ignoring safety regulations, or implementing fraudulent billing practices
• Ethical violations: Lying to customers or misrepresenting product safety information
• Civic duties: Serving on jury duty, responding to a court subpoena, or voting

While specific protections vary by state, courts generally recognize a termination as wrongful if the employee refuses to do something illegal or harmful to the public. There may be specific case precedents that apply to your situation, so it’s always best to talk to a lawyer.

Termination for taking time off

Taking time off from work isn’t automatically protected from termination, but certain types of leave are protected by law. Here are various examples of legally protected leave: 

• Family and medical leave. Under the Family and Medical Leave Act (FMLA), eligible employees can take up to 12 weeks of unpaid leave per year for serious health conditions, to care for family members, or to bond with a new child. 
• Military leave. The Uniformed Services Employment and Reemployment Rights Act (USERRA) protects service members’ jobs while they’re serving and upon return. 
• Pregnancy and parental leave. Federal law protects workers from being fired due to pregnancy, childbirth, or related medical conditions, even if they don’t qualify for FMLA. 

In addition, many states have their own laws and mandates for paid family leave programs, sick leave, and extended leave periods. 

If an employer fires an employee because they took legally protected time off, this could qualify as wrongful termination and provide grounds for legal action. However, employees must still follow all internal policies and procedures when requesting these leaves.

Termination for filing a complaint

Federal laws protect employees who report illegal activities or safety concerns—often called “whistleblowers”—from being fired in retaliation. Whistleblower protections apply whether the employee files a complaint internally or with government agencies.

Here are a few examples of protected complaints:

• Safety issues, unsafe working conditions, or equipment hazards
• Illegal conduct, fraud, or violations of environmental regulations
• Hostile work environments, harassment, or wage violations 

If an employer terminates someone for making these types of complaints, it’s considered wrongful discharge. However, termination isn’t the only form of illegal retaliation. Other actions like demotion, reduction in work hours, or unfavorable schedule changes are also unlawful. 

How to sue for wrongful termination

If you believe you’ve been wrongfully terminated, you can begin by filing a claim with the appropriate federal agency, which may vary depending on the reason you believe you were fired. Then, you can follow these steps to assess and build your case. 

Step 1: Contact a wrongful termination attorney

Start by researching wrongful termination or employment attorneys in your area. Many of them offer free initial consultations to evaluate your case, including the following: 

• The circumstances of your termination
• Whether you have a valid legal claim and potential compensation 
• Your legal rights and options under federal and state laws
• Their fee structure

Even if you don’t move forward with their services, it’s highly recommended to contact an attorney as soon as possible to at least review your options. You should also consider the statute of limitations (i.e., the deadline) for filing a wrongful termination case, which depends on your state (discussed more below).

Step 2: Review your employment contract

Next, you should gather your employment contract and any other relevant documents you’re still able to access, such as: 

• Employee handbook or company policies
• Your termination letter
• Performance reviews, written warnings, or email communications about your standing with the company

Look for any clauses or statements that might affect your claim, such as standard disciplinary procedures, termination policies, or required notice periods. You should also note any clauses for dispute resolution, also known as an arbitration agreement, as this could affect how you pursue your case. 

Still, your wrongful termination lawyer will ask for these documents and review them to identify potential violations and strengthen your claim. 

Step 3: Establish grounds for a lawsuit

You’ll need to clearly establish how your employer’s actions violated the law or your employment agreement. If it’s the latter, you’ll also need to demonstrate that you followed proper workplace procedures and didn’t deserve to be fired. 

To establish grounds, you or your attorney will determine which laws apply to your termination and develop the legal arguments for why your employer was in the wrong. Sometimes, this might involve multiple grounds, such as job discrimination and retaliation. 

Step 4: Gather evidence

Besides the employment documents you’ve already gathered, it helps to show additional evidence to support your case, such as: 

• Any communications with supervisors, HR, or other relevant parties
• Witness statements from coworkers
• If applicable, documentation of protected activities (e.g., FMLA paperwork), leaves, or medical records
• Pay stubs, benefit information, and approximate lost wages 
• Any evidence of discriminatory treatment or harassment

Keep all original documents and be sure to make copies for your attorney. You should also try to create a timeline of events leading up to your termination to establish any patterns for your claim. 

Step 5: File a complaint with the EEOC

If you haven’t already filed a complaint with the EEOC, you’ll need to do so before pursuing most wrongful termination lawsuits. Be thorough and honest when filing your complaint, as any inconsistencies or errors could affect your case later. 

Your attorney can also help you file this complaint and ensure you include all the relevant details. However, keep in mind that you have a limited time to file—usually 180 days from the date of the termination, though this deadline may be extended to 300 days in some circumstances. 

Step 6: Offer to negotiate

Before proceeding with a formal lawsuit, your attorney may attempt to negotiate a settlement with your former employer. Many wrongful termination cases are resolved through negotiation, saving both parties the time and expense of a court battle. 

During this phase, your attorney will draft a demand letter outlining your claims, grounds for wrongful termination, and proposed settlement terms. This might include compensation for lost wages, benefits, emotional distress, and attorney fees. 

Step 7: File your lawsuit

If negotiations fail and the other side won’t agree to a fair settlement, you may still proceed with your lawsuit. First, your attorney will submit a legal complaint and file all the necessary forms with the appropriate court. Once filed, your former employer will have the chance to respond to your claims, which officially begins the formal legal process. 

Still, settlement negotiations can continue before reaching trial, so you may be able to reach a resolution without attending a hearing.

Step 8: Attend your hearing

If your case proceeds to court, both sides will present evidence and testimony supporting their positions. Your attorney will argue your case, question witnesses, and respond to the other side’s defense. Finally, though it could take one or several appearances, the court will decide whether your termination was illegal and what compensation you deserve. 

How much does it cost to sue for wrongful termination?

Many employment attorneys handle wrongful termination cases on a contingency fee basis, so they only get paid if you win your case. Typically, attorneys take 30% to 35% of the final settlement or court award, which is the largest expense of the process. 

This investment often pays off—the average compensation for wrongful termination cases without a lawyer is around $19,000, while those with legal representation average nearly $49,000. Still, the exact range can be quite broad, with successful claims ranging anywhere from $5,000 to $100,000 or more. 

However, federal limits on damages may affect your case’s potential compensation. For reference, the EEOC sets the following limits on compensatory and punitive damages based on employer size. 

• 15-100 employees: $50,000 
• 101-200 employees: $100,000
• 201-500 employees: $200,000
• More than 500 employees: $300,000

While these cases are rare and often challenging, they can certainly be worth pursuing if you have a valid claim. In 2023, the EEOC secured more than $665 million in monetary relief for over 22,000 victims of employment discrimination, though this includes all legal claims at issue, not just wrongful termination.  

FAQs

Can at-will employers be sued for wrongful termination?

Yes, at-will employers can be sued for wrongful termination if they violate employment laws or their own policies. For instance, they can’t fire an employee for discriminatory reasons, in retaliation for protected activities, or because the employee escalated a complaint. 

How do I defend myself against wrongful termination?

If you’re an employer facing a wrongful termination claim, you should contact an employment attorney immediately. They can help review the circumstances, gather evidence supporting your decision, and advise you on how to proceed. 

How long after you’re fired can you file a wrongful termination lawsuit?

The timeline varies by state and circumstances, but for most cases, you must first file a complaint with the EEOC within 180 days of termination (some states may extend this to 300 days). Then, you must file a lawsuit within the statute of limitations, which varies by jurisdiction.