Legal Definitions - wrongful-termination action

A wrongful-termination action (also known as a wrongful-discharge action) is a lawsuit filed by a former employee against their previous employer. This type of legal action alleges that the employee's termination was illegal, violated public policy, or breached the terms of an employment contract.

While many employment relationships are "at-will" (meaning an employer can generally fire an employee for any reason, or no reason, as long as it's not an illegal one), a termination becomes "wrongful" if it falls into specific prohibited categories, such as:

• Discrimination: Termination based on protected characteristics like race, gender, age, religion, national origin, disability, or sexual orientation.
• Retaliation: Termination for engaging in legally protected activities, such as reporting workplace safety violations, filing a harassment complaint, or taking protected medical leave.
• Breach of Contract: Termination that violates the terms of an express written or implied employment contract.
• Violation of Public Policy: Termination for refusing to commit an illegal act, performing a public duty (like jury service), or exercising a legal right.

Here are some examples illustrating a wrongful-termination action:

• Example 1: Age Discrimination

  A 62-year-old marketing director, who has consistently received excellent performance reviews for 15 years, is suddenly fired. The company claims it's due to "restructuring," but immediately hires a 30-year-old with less experience for the same role at a lower salary. The former director believes they were terminated because of their age, in violation of anti-discrimination laws.

  This scenario demonstrates a wrongful-termination action because the employee is alleging that their dismissal was based on age discrimination, which is prohibited by federal and state laws. If proven, the termination would be deemed illegal.

• Example 2: Whistleblower Retaliation

  An accountant discovers that their employer is deliberately misreporting financial data to avoid taxes. After reporting this illegal activity to the appropriate government agency, the accountant is fired the following week, with the company citing "poor cultural fit" as the reason, despite no prior performance issues. The accountant believes they were terminated in retaliation for exposing the illegal conduct.

  This illustrates a wrongful-termination action based on retaliation. Many laws protect employees who report illegal activities by their employers (often called "whistleblowers"). Firing an employee for such a protected act would be considered a wrongful termination.

• Example 3: Breach of Employment Contract

  A software engineer signs a two-year employment contract that specifies they can only be terminated "for cause," such as gross misconduct or failure to meet specific performance metrics after a probationary period. Eight months into the contract, the company fires the engineer without providing any specific cause, simply stating they are "downsizing."

  This is an example of a wrongful-termination action based on a breach of contract. The employer's action directly violates the terms of the written agreement, which limited the reasons for termination. The engineer could sue for damages resulting from the company's failure to adhere to the contract.