Work and Employment
Was I Wrongfully Terminated? A Comprehensive Guide
Losing your job can be tough, especially if it happened because you stood up against discrimination or illegal activities at work. In this comprehensive guide, we help you understand if you've been wrongfully terminated, explain the laws that protect you, and outline the steps to take if you choose to take legal action.
By:
Chelsea Spinos
Reviewer:
Timothy Lenahan, Esq.
10 min read • April 29, 2024
Key takeaways
Wrongful termination encompasses discrimination, retaliation, breach of contract, or violation of labor laws.
Federal laws provide protection against wrongful termination, with many states offering additional safeguards.
Settlements for wrongful termination outside of court, according to EEOC data, typically range from $5,000 to $80,000 on average.
If you need a wrongful termination lawyer, Manifest Law can assist in building your case and advocating for the justice and compensation you deserve.
Imagine waking up one day, ready to tackle the world, only to find yourself blindsided by a termination notice. It's a gut-wrenching experience, but you're not alone.
In a world where job security seems uncertain, many people encounter the harsh reality of unexpected job loss, often due to wrongful termination – whether it be discriminatory reasons or retaliation.
This guide is here to help you better understand if you’ve been wrongfully terminated. We break down federal and state laws safeguarding you as an employee and the steps you should take if you’ve been wrongfully terminated.
Wrongful termination means being unfairly fired from your job. It occurs when your employer lets you go for reasons that break the law or don't follow the terms of your contract.
This includes (A) being fired because of who you are— discrimination based on your race, gender, age, disability, religion, or sexual orientation, as well as (B) being fired for whistleblowing (speaking up about something illegal at work), or (C) reporting workplace harassment.
It's also wrongful termination if your employer doesn't follow the rules laid out in your contract when they fire you, or if they don't pay you for overtime work or give you the time off you're legally entitled to.
Let’s break each of these scenarios down to better understand if you’ve been wrongfully terminated.
Form of wrongful termination
Discrimination
Retaliation
Breach of employment contract
Violation of labor laws
Scenario
When you get fired because of your race, gender, age, religion, disability, sexual orientation, or other protected characteristics.
(A) When you get fired for whistleblowing (reporting illegal activities within the company) or (B) after requesting medical leave or (C) reasonable accommodations for a disability.
When you get fired because your employer doesn't want to follow your contract. For example, pay your commission, bonus or other benefit.
When you get fired for things that are protected by law, like refusing to work overtime without pay or taking time off when you're legally allowed to.
If any of these sound familiar and you think you've been treated unfairly, you have rights.
Reach out to get an evaluation the strength of your case.
There are a lot of common misconceptions about what kind of scenario is considered wrongful termination. Let's take a look at a few scenarios:
Scenario
A female employee is consistently passed over for promotions despite having more qualifications and experience than her male colleagues. When she raises the issue to HR, she is terminated shortly afterward without any valid explanation.
An employee working for a financial services app finds evidence of fraudulent activities involving senior management. When the employee reports the fraud to their supervisor, they are terminated for some pretense reasons.
A startup company experiences financial difficulties and decides to reduce its workforce to cut costs. The employer informs the affected employees that their positions are being eliminated due to budget constraints and provides them with severance pay and assistance in finding new employment.
Your boss constantly criticized your work and made you feel small in front of everyone. Eventually, you decided you had enough and quit.
Wrongful termination?
❌ No. Unlikely to be wrongful termination.
This scenario aligns with the principles of at-will employment and the support from the company to the employees let go is fair and lawful.
❌ No. Unlikely to be wrongful termination.
While your boss's behavior isn't okay, your resignation isn't wrongful termination because it was your choice to leave.
There are instances where your employer has the right to let you go. This could happen if you don’t meet performance expectations or the job description, especially if your company gave you a second chance to improve.
If you’ve violated company policies or rules laid out in your employment contract, you could also get legally fired. And, if you work in a jurisdiction where at-will employment is recognized, you could legally be fired for no reason at all.
So before you reach out to an employment lawyer and build your case, let’s cover the situations where your boss has the legal right to fire you.
Form of legal termination
Performance-based termination
Misconduct or ethical reasons
Violation of company policies
Contractual agreements
At-will employment
Scenario
If your work consistently doesn't meet what your boss expects, they might let you go. This typically involves documenting poor performance, providing feedback and coaching, and giving you a chance to improve before getting fired.
If you’ve engaged in serious misconduct or ethical breaches, that could justify termination. This includes theft, fraud, violence in the workplace, discrimination against coworkers, or sharing confidential information when you aren’t supposed to.
If you’ve violated your company policies or rules, especially those outlined in an employee handbook or communicated verbally, you can legally get fired.
If you signed a contract when you got hired, both you and your employer have to stick to it. If you break the rules in the contract, you could get let go.
If you work in a jurisdiction where at-will employment is recognized, your employer has the right to terminate you for any reason or no reason at all (as long as it's not an illegal reason, like workplace discrimination).
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At-will employment is where either the employer or you as an employee, can end the employment at any time – with or without cause, and with or without notice.
This means that the employer can terminate the employee for any reason, as long as it's not illegal such as discrimination, retaliation, or in violation of policy. Similarly, the employee is free to leave their position at the company without needing to provide a reason.
In most U.S. states, at-will employment is the default. But in some states, there are special rules that add extra protections for employees. These rules might come into play if there's an implied agreement about your job, if firing you goes against public policy, or if your employer isn't acting fairly. These exceptions can make it harder for your boss to let you go without a good reason.
At-will employment states:
When it comes to wrongful termination, federal and state laws have your back as an employee. These laws cover protections for whistleblowing, workplace discrimination, overtime pay, and more.
Let's take a closer look at each of these laws and how they relate to cases of wrongful termination.
Federal laws
Law
What is it?
This law prohibits discrimination based on race, color, religion, sex, or national origin.
This law protects individuals who are 40 years of age or older from discrimination based on age.
This law prohibits discrimination against qualified individuals with disabilities in employment.
This law gives eligible employees with unpaid, job-protected leave for specified family and medical reasons.
This law requires equal pay for equal work regardless of gender.
These laws protect employees who report violations of laws or regulations by their employers.
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State laws
Some states extend protections beyond what federal laws provide. They might include additional categories for discrimination (like sexual orientation or gender identity) or lower the threshold for what constitutes harassment or discrimination.
For example, the California Fair Employment and Housing Act (FEHA) prohibits discrimination based on additional categories such as sexual orientation, gender identity, gender expression, marital status, and military or veteran status.
New York State's Human Rights Law includes protections against discrimination based on sexual orientation, gender identity, and transgender status.
Additionally, state laws may broaden protections for whistleblowers, to cover more situations or provide additional remedies for retaliation. Massachusetts has strong whistleblower protections under the Massachusetts Whistleblower Protection Act, which covers public and private sector employees and provides legal remedies for retaliation.
Requirements for termination procedures, like giving advance notice before a layoff or providing a reason for termination, can also vary depending on the state.
For instance, California's WARN Act requires 60 days' advance notice for layoffs affecting 50 or more employees at companies that have 75 or more employees. However New York's mini-WARN Act, applies to employers with 50 or more full-time employees and requires 90 days' advance notice for mass layoffs affecting 25 or more employees.
Overall, state laws can provide additional protections for employees and set standards that go beyond what federal laws require. If you think you have a case for wrongful termination, it’s important to be aware of the specific laws and protections in your state, and understand your rights at the federal and state levels.
Terminating an employee as a form of retaliation is when an employer fires or takes adverse action against an employee in response to the employee engaging in protected activities, such as reporting illegal conduct, discrimination, or safety violations in the workplace.
This is considered unlawful because it undermines the employee's right to speak up about wrongdoing without fear of reprisal.
When you see something illegal happening at work and report it, you're protected by whistleblower laws. These laws make it illegal for your boss to fire you, demote you, or treat you unfairly because you spoke up.
If you think you got fired for speaking up, it's important to talk to a lawyer who knows about employment laws. You might be able to get your job back, get paid for the time you missed, and even get compensated for any harm you suffered because of what happened.
Get in touch with a wrongful termination lawyer today and see if you have a case.
Reach out to get an evaluation the strength of your case.
Whether you can sue for wrongful termination depends on multiple factors, like the circumstances of your specific case.
If your termination violates federal or state laws against workplace discrimination, retaliation for whistleblowing, or breach of contract, you may have grounds for a wrongful termination lawsuit.
If you're an at-will employee, your employer can generally terminate you for any reason that's not illegal or prohibited by contract. However, even at-will employees are protected from certain types of wrongful termination, such as discrimination or retaliation.
To understand if you have a strong wrongful termination case, it’s recommended that you consult with an experienced employment lawyer. Our lawyers at Manifest Law have extensive experience with cases of wrongful termination, and can help review and build your case.
When it comes to suing for wrongful termination, the time you have to take action depends on where you live and the specific circumstances of your case.
Federal law
If you believe you've been wrongfully terminated due to discrimination, like being fired because of your race or gender, under federal law, you typically have around 6 months to a year to file a complaint.
You may also choose to file a complaint with a federal agency like the Equal Employment Opportunity Commission (EEOC).
State law
As we’ve seen, different states have different laws regarding wrongful termination and employment discrimination – and the statute of limitations can vary. Some states may have longer timeframes for filing such claims under their own state laws.
For example, California allows up to 1 year to file a discrimination complaint with the California Department of Fair Employment and Housing (DFEH) and up to 1 year from the date of receiving the "right-to-sue" letter to file a lawsuit.
New York also gives you more time to take action than you would under federal law. You have up to 300 days to file a complaint with the New York State Division of Human Rights (NYSDHR) from the date you experienced discrimination.
This extra time means you have a better chance to pursue your case under state law, compared to the shorter 180-day limit under federal law.
Extension or tolling of statutes of limitations
Depending on the situation, the time you have to file a claim for wrongful termination doesn’t start right when you get let go.
In some cases, the statute of limitations may start from the date you become aware of the wrongful termination, rather than the date you were fired. This is known as the “discovery rule” and applies to cases where you couldn’t have reasonably known about the wrongful termination when it happened.
Sometimes wrongful termination is part of an ongoing issue of workplace discrimination. If this is the case, then the statute of limitations may be extended to cover the entire duration of the violation, rather than the date you got terminated.
Statute of limitations may also be “tolled” or suspended if you had a legal disability during the time you were terminated. The statute of limitations for these cases would start once the disability is no longer.
If you've been unfairly fired from your job, you might be entitled to compensation for the harm you've suffered. This compensation, usually referred to as “damages”, aims to make up for the different ways you've been affected by your wrongful termination.
Here are some common types of damages you might be able to claim in a wrongful termination case:
Type of Damage
Loss of earnings
Loss of benefits
Medical expenses
Cost of job search
Pain and suffering
Punitive damages
Liquidated damages
Attorney fees
What is it?
This includes the wages and bonuses you would have earned if you hadn't been fired.
You may be compensated for the value of benefits like health insurance, retirement contributions, or other perks you lost because of the termination.
If your termination led to health issues or increased medical costs, you might be reimbursed for these expenses.
Expenses related to finding a new job, such as resume printing or travel for interviews, may be included in the damages.
Compensation for emotional distress or suffering caused by the wrongful termination.
In cases of severe misconduct by the employer, additional damages may be awarded to punish them and deter similar behavior in the future.
These are predetermined amounts specified in employment contracts or laws for certain violations, which you may be entitled to if your rights were violated.
If you win your case, the employer may be required to cover your legal expenses.
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When it comes to wrongful termination settlements, the numbers can vary quite a bit.
According to data from the Equal Employment Opportunity Commission (EEOC), settlements outside of court typically range from $5,000 to $80,000 on average.
However, research suggests that higher settlements often happen when employees turn down the first offer from their employer, when the company in question is on the larger side, or when a lawsuit gets filed and the employee dives into the discovery process to gather evidence. Plus, cases involving discrimination based on race, disability, or sex can lead to even higher settlements, especially if there's physical or mental harm involved.
Calculating what you might get in a wrongful termination settlement can be tricky. It depends on a bunch of things. Some damages are easy to figure out because they're about money you would have earned. Others are less straightforward because they're about things like how you've been hurt emotionally.
Generally speaking, the starting point for calculating damages is based on how much you were making at your job before you got fired. This includes your salary plus any bonuses or commissions you usually received. For example, if you made $60,000 a year in salary plus $15,000 in bonuses, your total yearly pay would be $75,000.
If the termination occurred before potential future raises or promotions, these can also be factored into the calculation. For instance, if you would have received a 5% raise each year, the lost future raises would be added to the total damages.
Don't forget about benefits like health insurance or retirement contributions. Those count too, and they can add up to a lot of money!
In some cases, the total damages are multiplied by a factor that takes into account the amount of time you’re unemployed and the expected length of future unemployment if you haven’t found another job. This is to make up for the money you would have made if you hadn't been unfairly fired.
Here is a simple formula for calculating damages in a wrongful termination lawsuit:
(Total Annual Compensation) x (# of Years Unemployed) = Economic Damages
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For example, let's say you were wrongfully terminated and have been unemployed for one year with a reasonable expectation of still being unemployed for another year.
If your total annual compensation was $75,000, and the multiplier was 2 (reflecting the two years of unemployment), the total calculated damages would be $150,000 ($75,000 x 2).
Keep in mind that the use of multipliers is not universal, and not all wrongful termination cases involve multiplying damages by a specific factor. Each case is evaluated individually, and damages are determined based on the unique circumstances and applicable laws.
Consulting with an experienced employment lawyer is the best way to understand how damages might be calculated in your specific case and what factors might influence the outcome. Our team of wrongful termination lawyers can offer personalized guidance based on the details of your situation and help you pursue the compensation you deserve.
Considering taking legal action for wrongful termination? Check out the steps of the process and dive deeper into each one below.
Process for wrongful termination lawsuit
Step 1: Know your rights under federal and state laws
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Step 1: Know your rights
Before taking legal action, it’s essential to first know your rights under federal and state laws. Take another look at the section above to learn about the laws around wrongful termination, or book a free consultation with Manifest Law to explore about your legal options.
Step 2: Consult with a wrongful termination lawyer
When it comes to suing, having an experienced wrongful termination lawyer by your side can make all the difference. At Manifest Law, our team is here to assess your case, break down your legal rights in easy-to-understand language, and lead you through every step of the legal journey. Plus, we'll handle all the communications with your employer, so you can have peace of mind throughout the process.
Step 3: Gather your evidence
Collect any documentation related to your termination, such as employment contracts, performance evaluations, emails, witness statements, and any other records that support your case.
Anything that shows you were let go right after experiencing discrimination, retaliation for speaking out, or any other unlawful behavior by your employer, will be crucial evidence for your case.
Step 4: File a complaint
Depending on your case, you might need to file a complaint with a government agency, before filing for a lawsuit. For example, if your wrongful termination involved workplace discrimination, you may need to file a charge with the Equal Employment Opportunity Commission (EEOC).
Your wrongful termination lawyer can help you with this step!
Step 5: Receive a right to sue letter
Once you've filed a complaint with a government agency, they'll usually send you a "right-to-sue" letter if they find that you're entitled to take legal action. This letter gives you the green light to move forward and file a lawsuit in court.
Step 6: File the lawsuit
With the right-to-sue letter in hand, you can proceed to file a lawsuit against your former employer in court. Your lawyer will handle the preparation and filing of legal documents, as well as representing you in court proceedings.
So, what happens after you file a lawsuit for wrongful termination?
Once the lawsuit is filed, the legal process will be underway. This will include a pre-trial discovery, settlement negotiations, and possibly a trial if the case doesn't settle. If you choose to hire an employment lawyer from Manifest Law, they will represent you throughout these proceedings and advocate for the best possible outcome.
💡 Manifest Tip: Did you know? A pre-trial discovery is when both sides in a lawsuit gather info and evidence from each other to get ready for court. The goal of pre-trial discovery is to promote fairness, facilitate settlement negotiations, and ensure both sides have all the needed information.
Losing your job is tough, and being wrongfully terminated can feel even worse. Whether you've been let go due to discrimination, retaliation, or for reasons that aren’t legal, we're here to support you. At Manifest Law, we understand the challenges you're facing, and we're ready to help.
Schedule a free same-day consultation with our team, and we'll dive into your situation to see how we can assist you. If it looks like you've got a strong case, we'll pair you with an experienced workplace retaliation lawyer. They'll gather all the necessary documents and evidence, handle all communication with your former employer, and fight to get you the compensation you deserve.
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