Wrongful Termination
Illegal firing of an employee in violation of law, contract, or public policy.
Plain English
Wrongful termination occurs when an employer fires an employee for an illegal reason or in violation of an employment contract or established public policy. Common illegal reasons include retaliation for reporting safety violations, discrimination based on race or gender, refusal to commit an illegal act, or exercising a legal right like jury duty. In most US states, employment is at-will, meaning employers can fire workers for almost any reason, but there are important exceptions. An employee who is wrongfully terminated can sue for damages, including lost wages and emotional distress.
Example
An employee reports her company's unsafe working conditions to the government agency OSHA. Two weeks later, the company fires her, claiming poor performance. The employee can sue for wrongful termination because the firing was retaliation for a legally protected action.
Used in a sentence
“He filed a wrongful termination lawsuit after being fired for refusing to falsify company records.”
How Wrongful Termination differs by state
Wrongful Termination can apply differently depending on the state. Click a state to see local specifics.
Related terms
This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.