Wrongful termination: what is it? With examples!

You may be wondering, “What is wrongful termination?” After all, getting fired seems a little unfair on the face of it, right? Wrongful termination, however, is a term that means that an employer has unjustly or unlawfully terminated an employee from their position. Wrongful termination occurs when the firing violates labor laws (which can vary by state) or employment contracts, but sadly, can also come as retaliation for whistleblowing, for example, or due to discrimination. 

Regardless of the cause, wrongful termination can damage a person’s professional life and even seep into their personal life. Fortunately, there are things you can do to protect yourself, so if you feel you’ve been wrongfully terminated, it’s important to be informed and take action.

How do you identify wrongful termination?

Along with employment contracts, there are laws and regulations designed to protect employees from wrongful termination. When those laws are violated or contracts ignored, termination can fall into the “wrongful” category. Wrongful termination can also describe the firing of an employee without just cause, removal as retaliation, or—in some cases—can even be a civil rights violation. 

4 Examples of wrongful termination

1. Breach of contract

If an employee has a contract with an employer, it should outline the scope and terms of their employment. Both parties must honor this contract. If the employer ends an employee’s employment in a way that violates the contract, that employee has been wrongfully terminated.

2. Harassment or discrimination

Hostile work environments or workplaces that allow discrimination to occur, can also result in wrongful termination situations. If an employee files a complaint about negative comments or actions regarding his or her gender, race, or disability status, and is then fired, that can be considered wrongful termination.

3. Whistleblowing

Employees should feel like they can report safety or environmental violations without fear for their job or personal well-being. But this isn’t always the case. If an employee is fired for reporting an employer’s illegal actions, this is also considered wrongful termination.

4. Retaliation

When an employee is terminated for performing a protected act such as whistleblowing, reporting harassment, or even federally protected acts such as voting, serving on a jury, or taking leave under the Family and Medical Leave Act (FMLA), that is wrongful termination. In the same way, if an employee is terminated for refusing to commit an illegal act or violate company policy, that is also wrongful termination. 

Do wrongful terminations vary by state?

According to Gartner, wrongful termination occurs when an employer ends an employee's work contract, but the termination "violates the terms of the employment agreement or some provision of employment law.” However, most states in the US are “at will” states or have carved out exemptions for “at will” employment—meaning that employment can be ended for just about any reason without warning. All US states (except Montana) have some form of at-will employment exemption. However, there are regulations that override the “at will” termination rule, such as employment contracts (formal or implied), public policy, misrepresentation, or an implied covenant of good faith and fair dealing.

It’s important to note that each state views exceptions to “at will” employment differently. 

• 42 states follow the public policy exception.

• 36 states recognize the implied contacted exception.

• 11 states recognize the “implied covenant of good faith” exception, which requires "just cause" for firing an employee.

If you feel you’ve been terminated wrongfully, do your due diligence and research if any exceptions are recognized in your state. 

How do you argue wrongful termination?

If you feel you’ve been the target of wrongful termination, you do have a few options. The first one is to write a letter appealing the decision. A wrongful termination letter is sent to your employer and serves as an official document letting them know you disagree with the decision to terminate your employment. There are a few steps you'll need to take when writing the letter.

Prepare your documentation

If you’re not already familiar with your employer’s policies, this is the time to do some research and collect evidence related to your employment and subsequent termination. In many cases, your former employer, by law, has to provide you with a copy of your employment file, including the termination letter. Make sure you have these items, as it will help you support your case.

Write the letter

Once you’ve done your homework and collected your evidence, write your letter. Address the letter to the HR department, your manager, or the person who fired you. Note the date you were terminated, the name and position of the person who terminated you, and the reason you were given, if any. After that, detail the reasons you believe you were wrongfully terminated in your letter, including any policies that were violated or examples of incidents that led you to believe you were terminated for a prohibited reason.

Call for a response timeframe

At the end of your letter, include a timeframe for which you require a response, usually within 30 days. If your employer doesn’t respond in that timeframe, you should consider taking advanced legal measures.

Include copies of your documentation.

You should include copies of the evidence showing you were wrongfully terminated, including anything you mentioned in your letter, to support your claim. Remember to keep copies of these for yourself, as you may need them later, and you don’t want your previous employer to have the only set of them.

Other steps you can take 

If writing a letter doesn't resolve the issue, you have other options, such as meeting with an employment lawyer with experience in wrongful termination cases. To further support your case, there are a few things you can do:

• File an official complaint with the Equal Employment Opportunity Commission (EEOC).

• Document all communication during and after your termination, such as emails, phone call logs, texts, or other forms of communication you have with your employer.

• Create a timeline of your career with your employer, documenting any types of conversations, projects, meetings, and actions taken by both you and your employer leading up to your termination.

• Contact witnesses who can corroborate your evidence of wrongful termination and ask if they are willing to provide statements or testify on your behalf.

How do you deal with being fired unfairly?

It’s a tough situation, no matter how you look at it, so how do you respond to an unfair termination? Along with taking any of the above steps, if you choose to pursue your legal options, it’s important to do some self-care. Don’t think of it as a devastating blow to your career, because you absolutely can recover.  Other things to keep in mind:

• Know that your emotions are valid. You might be in shock or denial, or you might be angry, afraid for the future, or depressed. It’s all valid. Seek help if you need it. 

• Attend to your physical and mental health. Yes, getting fired is rough, but don’t forget to take care of yourself by eating healthfully, staying active, and finding mindful activities that work for you, such as yoga, meditation, or breathing exercises.

• Attend to the other aspects of life. Find out about your healthcare options, if you have any PTO payout available, and unemployment insurance. Also, take a look at your budget and your current financial situation, and figure out what you’ll need to do to bridge the gap until your next job.

• Let it go. After you’ve taken time to process the situation, move on. Don't dwell on the "woulda, coulda, shoulda." It's not good for you, mentally or physically.

• Update your resume, do interview prep, and consider a Career Coaching service. Career.io's career coaches can give you advice on defining your professional brand, provide effective job search strategies, help you navigate workplace challenges, and design a plan for your career success.

Need help planning your next career move? Career.io’s Career Pathways will give you the tools you need to explore career options, set goals, bridge skill gaps, and plan for your future with confidence. If you’re on a journey seeking your next role, you can get success with a roadmap. Check out Career.io’s Job tracker to get started.

 Key takeaways

1. Wrongful termination means that the employer has unjustly or unlawfully terminated an employee from their position. 

2. Wrongful termination can also be used to describe the firing of an employee without just cause, and are often the result of a civil rights violation. 

3. Most states in the US are “at will” states, which means that employees can be fired for just about any reason, without warning.

4. You have options for addressing wrongful termination, including writing a letter and/or contacting an attorney. 

5. If you’ve been fired, take the time to attend to your physical and mental health, and prepare for the job search by updating your resume or enlisting the services of career.io’s Career Coaching.