Wrongful Termination: What Counts as Illegal Firing

Losing your job is one of life’s most stressful events, but it can feel even more overwhelming when you suspect your termination was unfair—or worse, unlawful. While many people use the phrase “wrongful termination” to describe any firing that feels unjust, the law has a much narrower definition. Not every firing is illegal, but certain situations may give you the right to take legal action.

This article explains what wrongful termination really means, the circumstances that count as illegal firing, and what you can do if you believe your employer violated your rights.

Understanding Wrongful Termination

The Difference Between Unfair and Illegal Firing

It’s important to understand that wrongful termination does not simply mean a firing was unfair, unreasonable, or poorly handled. For example, being let go because your manager dislikes you, or because of office politics, is frustrating—but it isn’t necessarily unlawful.

Wrongful termination occurs when an employer violates federal or state laws, breaches an employment contract, or retaliates against an employee for exercising their legal rights.

Employment-at-Will and Its Limits

Most employees in the United States work under an “at-will” employment system. This means employers can terminate employees at any time, with or without cause, and without prior notice—so long as the reason isn’t illegal.

However, there are important exceptions to at-will employment. If your employer fires you for a reason prohibited by law or in violation of an agreement, it may constitute wrongful termination.

Common Forms of Wrongful Termination

1. Discrimination-Based Termination

Federal and state laws protect workers from discrimination in the workplace. It is illegal for an employer to fire you based on protected characteristics, including:

• Race or color
• National origin
• Sex, gender identity, or sexual orientation
• Religion
• Disability
• Age (40 and older)
• Pregnancy
• Genetic information

For example, if you were terminated shortly after announcing your pregnancy, or if older employees are systematically replaced with younger workers, these may be signs of discrimination.

Key laws that protect workers include:

• Title VII of the Civil Rights Act of 1964
• Americans with Disabilities Act (ADA)
• Age Discrimination in Employment Act (ADEA)
• Pregnancy Discrimination Act

2. Retaliation

Retaliation occurs when an employer fires an employee for engaging in legally protected activity. Some common examples include:

• Reporting workplace harassment or discrimination
• Filing a workers’ compensation claim
• Participating in an investigation by the Equal Employment Opportunity Commission (EEOC)
• Reporting safety violations to OSHA
• Whistleblowing illegal company practices

Federal law prohibits retaliation, and courts take these claims very seriously.

3. Breach of Employment Contract

If you have an employment contract—whether written, oral, or implied—your employer must honor its terms. If the contract states that you can only be fired for “just cause,” and you are terminated without a valid reason, that could amount to wrongful termination.

Similarly, if your contract promises a certain employment period (such as one year), and your employer dismisses you early without cause, you may have a claim for breach of contract.

4. Violation of Public Policy

An employer cannot fire you for reasons that violate public policy. This includes situations such as:

• Refusing to engage in illegal activity at your employer’s request
• Taking time off to serve on a jury
• Voting in an election
• Exercising rights under state or federal labor laws

For example, if you were fired for refusing to falsify financial documents, that termination could be considered unlawful.

5. Constructive Discharge

Sometimes, employers don’t technically “fire” employees but instead create intolerable working conditions to force them to resign. This is called constructive discharge. If you quit because your employer made the workplace hostile or unbearable—often through harassment, discrimination, or unsafe conditions—you may still have grounds for a wrongful termination claim.

Signs Your Firing Might Be Illegal

Recognizing whether your termination crosses into wrongful territory can be challenging. Some warning signs include:

• You were fired shortly after filing a complaint, reporting misconduct, or requesting accommodations.
• Other employees in your position (outside your protected class) were treated more favorably.
• Your employer violated its own policies or procedures during your termination.
• You had an employment contract that was disregarded.
• You were pressured to resign under unfair or discriminatory conditions.

If any of these apply to your situation, it’s worth seeking legal guidance.

The Legal Process for Wrongful Termination Claims

Step 1: Document Everything

Keep detailed records of:

• Performance reviews
• Emails, texts, or written communication with your employer
• Witness statements
• Company policies or employee handbooks
• The circumstances surrounding your termination

Documentation is crucial for proving your case.

Step 2: File an Administrative Complaint

Before suing, you often must file a complaint with a government agency. For discrimination and retaliation claims, this usually means filing with the EEOC or your state’s fair employment agency. These agencies will investigate your claim and may attempt to resolve the dispute.

Step 3: Pursue a Lawsuit

If the agency grants you a “right to sue” letter, you can file a lawsuit against your employer. Depending on your case, you may be entitled to remedies such as:

• Back pay and lost wages
• Reinstatement to your position
• Compensatory damages for emotional distress
• Punitive damages (in cases of especially egregious conduct)
• Attorneys’ fees and court costs

State-Specific Wrongful Termination Protections

While federal laws cover broad categories, many states provide additional protections. Some states expand the list of protected characteristics (such as marital status or political affiliation), extend time limits for filing complaints, or strengthen whistleblower rights.

For example:

• California offers extensive protections against discrimination and retaliation.
• Montana is unique in limiting at-will employment, requiring “good cause” for termination after a probationary period.
• Colorado (where many wrongful termination disputes arise) follows at-will employment but recognizes exceptions for discrimination, retaliation, public policy, and implied contracts.

Always check your state’s employment laws to understand your rights.

What Doesn’t Count as Wrongful Termination?

Not every firing is actionable. For instance:

• Being let go due to poor performance, company downsizing, or restructuring is typically legal.
• Personality conflicts with your manager, while frustrating, don’t violate the law unless discrimination or retaliation is involved.
• Employers can legally terminate you without giving a reason—so long as that reason isn’t discriminatory or unlawful.

Understanding this distinction helps manage expectations and clarify whether legal recourse is available.

Preventing Wrongful Termination Issues as an Employee

While you cannot control your employer’s decisions, you can take proactive steps:

• Know your rights. Familiarize yourself with federal and state employment laws.
• Maintain records. Keep copies of contracts, performance reviews, and communications.
• Request clarity. If you’re given instructions that seem unlawful or discriminatory, ask for clarification in writing.
• Seek legal advice early. Consulting with an employment lawyer at the first signs of trouble can help you protect your rights.

How Employers Can Avoid Wrongful Termination Claims

From an employer’s perspective, preventing wrongful termination claims requires:

• Training managers on discrimination and retaliation laws
• Following written policies consistently
• Documenting performance issues clearly
• Consulting HR or legal counsel before termination decisions
• Providing fair warning and opportunities for improvement where possible

Prevention not only reduces legal risk but also fosters trust and respect in the workplace.

What to Do If You Believe You Were Wrongfully Terminated

If you suspect your firing was unlawful, here are practical steps:

1. Stay calm and avoid rash decisions.
2. Request documentation from HR regarding your termination.
3. Gather evidence such as emails, performance records, and witness statements.
4. File a complaint with the EEOC or state agency promptly—deadlines can be as short as 180 days.
5. Consult an employment lawyer to evaluate your case and explore your options.

Conclusion: Protecting Yourself Against Illegal Firing

Wrongful termination cases are complex, and not every unfair firing qualifies as illegal. However, if you were dismissed due to discrimination, retaliation, breach of contract, or violation of public policy, you may have legal recourse.

Understanding your rights is the first step toward protecting yourself and holding your employer accountable. If you believe you’ve been wrongfully terminated, don’t wait—gather evidence, explore your options, and seek professional legal advice.

At Thomas & Associates, our experienced employment lawyers help workers navigate wrongful termination claims with skill and compassion. Contact us today for a consultation to protect your rights and pursue the justice you deserve.