In the United States, most employees are “at-will” employees, meaning that, absent an employment agreement that states otherwise, both the employer and employee may terminate the employment relationship at any time, with or without reason. An employer may terminate an employee for economic reasons, or for restructuring purposes, or simply because the employer happens to dislike the employee on a personal level.
The Exceptions
Discrimination
While an employer can terminate an employee at any time and for nearly any reason, there are certain federally protected reasons for which an employer may not terminate an employee.
Title VII of the Civil Rights Act of 1964, which applies to employers having fifteen or more employees, prohibits an employer from terminating an employee on the basis of sex, race, religion or national origin. Additionally, Congress has expanded protection against job discrimination to cover age, and disability. Most recently, a federal bill was passed by the House of Representatives in November 2007 which would prohibit discrimination by employers on the basis of sexual orientation or gender identity (though such bill is still awaiting approval by the Senate).
Additionally, under the Civil Service Reform Act of 1978, federal employers are further prohibited from discriminating against employees based on such things as marital status and political affiliation.
Many states have also passed their own laws on employment discrimination, which more or less reflect these federal protections, and the vast majority of large companies have also adopted their own policies with respect to employment discrimination.
Retaliation
It is against the law for an employer to terminate an employee in retaliation of certain actions (or inactions) of the employee. For example, an employer may not terminate an employee for reporting the employer’s illegal actions to proper authorities (known as whistle-blowing), for doing something which that employee is legally entitled to do (such as filing a legitimate workers’ compensation claim) or for choosing not to do something that is against public policy or sound moral judgment (such as resisting sexual advances.)
Breach of Actual or Implied Contract
Oftentimes, employers and employees enter into written contracts to define the terms of employment. While such contracts typically state that employment is “at-will,” there may be instances where an employment contract expressly states the duration of employment and/or prohibits termination of the employee for reasons other than “good cause.”
Additionally, some states might consider an employer’s policy manual, employee handbook or other similar materials – which may discuss that employer’s termination policy – to be an “implied contract” between the parties, potentially giving cause for a wrongful termination claim.
Breach of Good Faith and Fair Dealing
Some states (though not all) recognize an implied covenant of good faith and fair dealing, which requires employers to treat their employees fairly. An employer might breach this covenant if, for example, it terminates an employee right before that employee was set to receive a bonus or other similar benefit.
Defamation of Character
Finally, an employee can bring a claim for wrongful termination against an employer who intentionally defamed him/her to justify termination, such as falsely accusing that employee of stealing as an excuse to fire him/her.
Additional Resources
If you need more information on wrongful termination or other employment-related issues, or information on how to find an attorney for a potential claim, the following websites may be helpful:
Equal Employment Opportunity Commission
Wrongful termination information
Book recommendations:
Employees’ Rights: Your Practical Handbook to Workplace Law (Employee’s Rights)
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* Please note that the information provided above is not, and is not intended to be, legal advice, but merely conveys general information about common issues in this field. If you have a legal question, you should contact an attorney and seek legal advice based on your particular situation.
April 20th, 2009 at 6:23 pm
These are interesting ideas. Thanks for writing them.