Wrongful Termination: When Your Firing Is Illegal

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Getting fired is never easy, but sometimes it’s more than just unfair—it’s actually illegal. If you’re wondering whether your termination violated the law, you’re not alone. Many employees don’t realize that even in “at-will” employment states, there are significant legal protections against wrongful termination.

Understanding the difference between a legal firing and wrongful termination can mean the difference between walking away empty-handed and securing compensation for your losses. Let’s break down when your firing crosses the line from unfortunate to unlawful, and what you can do about it.

Disclaimer: This article provides general information for informational purposes only and should not be considered a substitute for legal advice. It is essential to consult with an experienced employment lawyer at our law firm to discuss the specific facts of your case and understand your legal rights and options. This information does not create an attorney-client relationship.

Understanding At-Will Employment vs. Wrongful Termination

Most employees in the United States work under “at-will” employment, which means your employer can terminate you for almost any reason—or no reason at all. This might sound harsh, but it also means you can quit anytime without notice.

However, at-will employment isn’t unlimited. There are crucial exceptions that protect employees from illegal termination. When your firing violates one of these exceptions, it becomes wrongful termination.

The Key Exceptions to At-Will Employment

Public Policy Exception: You cannot be fired for exercising legal rights or fulfilling civic duties. This includes filing for workers’ compensation, reporting illegal activities, serving on jury duty, or voting.

Implied Contract Exception: If your employer created reasonable expectations about job security through employee handbooks, verbal promises, or established practices, they may be bound by those implied agreements.

Covenant of Good Faith Exception: Some states recognize that employers must act in good faith when making termination decisions, particularly regarding commission payments or pension benefits.

Comparison table showing Legal vs Illegal Termination Reasons. Left column lists legal reasons including poor job performance, policy violations, economic layoffs, misconduct, attendance problems, personality conflicts, and business restructuring. Right column shows illegal reasons including discrimination based on race/gender/age/disability, retaliation for reporting violations, filing workers' comp claims, refusing to break the law, taking FMLA leave, whistleblowing, and union organizing activities.

Common Types of Wrongful Termination

Discrimination-Based Termination

Federal laws protect employees from termination based on race, color, religion, sex, national origin, age (over 40), and disability. Many states add additional protected categories like sexual orientation, marital status, or political beliefs.

Discrimination isn’t always obvious. It might look like suddenly receiving negative performance reviews after years of positive feedback, being excluded from important meetings, or facing different standards than your coworkers.

Retaliation for Protected Activities

Employers cannot fire you for engaging in legally protected activities. This includes:

The key is proving a connection between your protected activity and your termination. Courts look at timing, changes in treatment, and whether your employer’s stated reasons make sense.

Breach of Employment Contract

Even at-will employees may have contract protections. These can come from:

Written Employment Contracts: If you have a written contract specifying termination procedures or reasons, your employer must follow those terms.

Employee Handbooks: Progressive discipline policies in handbooks can create enforceable expectations. If the handbook says employees receive warnings before termination, suddenly firing someone without following that process might be wrongful.

Verbal Promises: Statements like “you have job security here” or “we don’t fire people without cause” can create implied contracts, especially when combined with long employment history.

How to Recognize Wrongful Termination

Warning Signs Your Termination May Be Illegal

Timing Red Flags

  • Fired shortly after filing a complaint or taking protected leave
  • Termination following a workplace injury
  • Fired after refusing to do something illegal or unethical
  • Dismissed during pregnancy or after requesting accommodations

Treatment Pattern Changes

Inconsistent Employer Explanations

  • Changing reasons for your termination
  • Disciplining you for issues other employees aren’t held accountable for
  • Claiming performance problems despite recent raises or promotions
  • Citing policies that aren’t consistently enforced

Documentation Is Your Best Defense

Start documenting immediately if you suspect wrongful termination might be coming. Save emails, performance reviews, witness contact information, and keep detailed records of conversations.

Pay particular attention to any comments about your age, race, gender, religion, or other protected characteristics. Even seemingly innocent remarks can become evidence if they show discriminatory intent.

The Wrongful Termination Claims Process

Flowchart showing the 7-step wrongful termination claims process: Step 1 - Document everything including evidence and witness information; Step 2 - File administrative complaint with EEOC, DOL, or state agency within deadlines; Step 3 - Wait for right to sue letter during agency investigation; Step 4 - File lawsuit in court within 90-day deadline; Step 5 - Discovery and evidence gathering including document requests and depositions; Step 6 - Settlement negotiations or trial with mediation attempts; Step 7 - Resolution and damages award through settlement or court judgment.

Administrative Requirements

Many wrongful termination claims require filing with government agencies before you can sue in court. Discrimination claims typically go to the Equal Employment Opportunity Commission (EEOC) first, while wage claims might go to the Department of Labor.

These agencies have strict deadlines. For EEOC complaints, you typically have 180 days from the discriminatory act (300 days in states with their own civil rights agencies). Missing these deadlines can destroy your case permanently.

Building Your Case

Gather Evidence: Collect employment records, emails, performance evaluations, witness statements, and any documentation supporting your claim. Your employer must preserve relevant documents once they know about potential litigation.

Identify Witnesses: Coworkers who witnessed discriminatory comments or inappropriate conduct can provide crucial testimony. Get their contact information before they leave the company or forget important details.

Calculate Damages: Document your financial losses, including lost wages, benefits, job search expenses, and emotional distress. Keep records of unemployment benefits received and mitigation efforts like job applications.

What You Can Recover in Wrongful Termination Cases

Economic Damages

Back Pay: Wages and benefits you would have earned from termination until judgment or settlement. This includes salary, bonuses, commissions, and the value of lost benefits like health insurance.

Front Pay: Future lost earnings when reinstatement isn’t practical. Courts consider factors like your age, health, work-life expectancy, and the likelihood of finding comparable employment.

Non-Economic Damages

Emotional Distress: Compensation for anxiety, depression, humiliation, and other psychological harm caused by wrongful termination. The amount depends on the severity of your employer’s conduct and the impact on your life.

Punitive Damages: In cases involving intentional discrimination or particularly egregious conduct, courts may award punitive damages to punish the employer and deter similar behavior.

Timeline showing critical deadlines after wrongful termination: Day 1-30 - Document termination details, gather evidence, and collect witness information; Day 30-60 - Consult employment attorney and file unemployment claim; Day 60-180 - File EEOC complaint for discrimination claims (180-day deadline, 300 days in some states); Day 180-300 - Continue job search and document mitigation efforts while preserving evidence; Day 300+ - Receive right to sue letter from EEOC and file lawsuit in court within 90 days.

Additional Remedies

Reinstatement: Getting your job back with full seniority and benefits. While not always practical due to workplace tension, it’s sometimes the most appropriate remedy.

Attorney’s Fees: Many employment laws allow successful plaintiffs to recover attorney’s fees from their employer, making it more feasible to pursue valid claims.

Protecting Yourself During the Process

Continue Your Job Search

You have a legal duty to “mitigate damages” by looking for comparable work. Keep detailed records of your job search efforts, including applications submitted, interviews attended, and positions you’ve turned down.

Don’t reject reasonable job offers just to increase your damages. Courts expect you to minimize your losses by finding new employment when possible.

Be Careful What You Say and Do

Avoid bad-mouthing your former employer on social media or in professional settings. Anything you post online can be used against you in court to argue that you damaged your own reputation.

Stay professional in all communications with your former employer. They may be monitoring your behavior to use against you later.

Preserve Evidence

Don’t delete emails, throw away documents, or lose contact with witnesses. Create backup copies of important evidence and store them safely outside your former workplace.

Your former employer has a duty to preserve relevant documents once they know about potential litigation, but it’s better to have your own copies of critical evidence.

When to Consult an Employment Attorney

Time-Sensitive Situations

Contact an attorney immediately if you believe you were fired for discriminatory reasons or in retaliation for protected activities. The deadlines for filing administrative complaints are strict and unforgiving.

Don’t wait to see what happens or try to handle the situation yourself first. Employment law is complex, and mistakes in the early stages can permanently damage your case.

Complex Legal Issues

Some wrongful termination cases involve multiple legal theories or intersect with other areas of law like contracts, torts, or constitutional rights. An experienced employment attorney can identify all potential claims and choose the best legal strategy.

They can also evaluate whether your case is strong enough to justify the time and expense of litigation, or whether settlement negotiations might achieve better results.

Red Flags That Suggest You Need Legal Help

If any of these situations apply to you, consult with an employment attorney promptly:

  • Your employer cited reasons for termination that seem pretextual or inconsistent
  • You were fired shortly after engaging in protected activities
  • The termination process didn’t follow established company procedures
  • You have evidence of discriminatory comments or conduct
  • Your employer is pressuring you to sign a release agreement

You received a severance package that seems inadequate

Taking Action: Your Next StepsTaking Action: Your Next Steps

If you believe you were wrongfully terminated, time is critical. Here’s what you should do immediately:

Document Everything: Write down the details of your termination while they’re fresh in your memory. Include who was present, what was said, and any circumstances that seemed unusual or suspicious.

Gather Evidence: Collect performance reviews, emails, witness contact information, and any other documents that support your case. Make copies of everything before you lose access to company systems.

File for Unemployment: Apply for unemployment benefits immediately, even if you plan to challenge your termination. You can receive benefits while pursuing your wrongful termination claim.

Consult an Employment Attorney: Don’t go it alone. Wrongful termination law is complex, and the stakes are too high to risk making mistakes. An experienced attorney can evaluate your case, explain your options, and guide you through the legal process.

Continue Your Job Search: Keep looking for new employment to minimize your financial losses. Document your efforts, as this information will be important if your case goes to court.

Remember, wrongful termination cases are about more than just getting compensation—they’re about holding employers accountable for illegal conduct and protecting the rights of all workers. If you believe your firing was illegal, don’t let it slide. Take action to protect your rights and secure the justice you deserve.

For a confidential consultation about your potential wrongful termination case, contact Nisar Law Group today. We’ll review your situation, explain your legal options, and help you determine the best path forward.

At Nisar Law Group, P.C., our New York lawyers are prepared to help hold your employer accountable for mistreatment directed at you. Please call us at or contact us online to discuss your case.

Written by Mahir S. Nisar

Mahir S. Nisar is the Principal at the Nisar Law Group, P.C., a boutique employment litigation firm dedicated to representing employees who have experienced discrimination within the workplace. Mr. Nisar has developed a stellar reputation for effectively advocating for his clients through his many years of practice as a civil litigator. Mr. Nisar’s passion in helping people overcome adversity in life and in their livelihood led him to train himself as a life coach with the Institute of Life Coach Training (ILCT). He routinely provides life coaching and executive coaching services to his existing clients as they collectively navigate the challenges of the legal process.