Legal Definitions - wrongful-discharge action

A wrongful-discharge action is a type of lawsuit filed by a former employee against their previous employer. This legal action alleges that the employee's termination was improper because it either violated the terms of an employment contract or was illegal under federal, state, or local laws.

Essentially, a wrongful-discharge action challenges the employer's right to dismiss an employee under specific circumstances, claiming the termination was unjust or unlawful.

Here are some examples illustrating when a wrongful-discharge action might be brought:

• Example 1: Breach of Contract

  Maria had a written employment contract with her company that stated she could only be terminated for "just cause" and after a specific progressive disciplinary process had been followed. One day, without any prior warnings or documented performance issues, Maria was abruptly fired. She believes her performance was excellent and that the company failed to adhere to the contractual terms for termination.

  Explanation: Maria could file a wrongful-discharge action because she alleges her employer violated the explicit terms of her employment contract by firing her without just cause and without following the agreed-upon disciplinary procedure.

• Example 2: Retaliation for Whistleblowing

  David, an accountant at a large corporation, discovered evidence of serious financial fraud within the company. He reported his findings to the appropriate government regulatory agency, as required by law for certain types of fraud. Shortly after his report became known internally, David was fired, with the company citing vague "performance issues" that had never been raised before. David suspects his termination was directly in retaliation for exposing the illegal activities.

  Explanation: David could pursue a wrongful-discharge action, arguing that his termination was illegal because it was in retaliation for his protected act of whistleblowing. Laws protect employees who report illegal activities, and firing someone for such an act is often a violation of public policy.

• Example 3: Discrimination

  Sarah, a highly qualified and experienced engineer, was 55 years old and had consistently received outstanding performance reviews throughout her career at a tech firm. After a new management team took over, she was suddenly laid off, with the company stating it was due to "restructuring." However, several younger, less experienced male engineers in similar roles were retained, and Sarah overheard comments from management about wanting a "younger, more dynamic" team. She believes her age and gender were the real reasons for her dismissal.

  Explanation: Sarah could initiate a wrongful-discharge action, claiming her termination was illegal because it constituted age and gender discrimination, which are prohibited by federal and state anti-discrimination laws. Her lawsuit would allege that her protected characteristics, rather than legitimate business reasons, were the true basis for her dismissal.