Employers may terminate workers for a variety of legitimate reasons, such as disciplinary infractions, poor performance, or as part of a reduction-in-force or corporate restructuring. However, terminated employees may accuse their former employers of discharging them for unlawful reasons, such as discrimination or retaliation.
When employers wrongfully terminate workers, they may face significant legal and financial liability and damage to their reputation and goodwill. If a former employee accuses your company of wrongful termination, hiring experienced attorneys can protect your business’s interests. Mitchell & Sheahan, P.C., focuses on representing employers in legal disputes. Our attorneys have developed in-depth knowledge of complex state and federal employment laws, leading to a proven record of successfully resolving employer-employee disputes at the negotiating table, during administrative proceedings, and in court.
Understanding Wrongful Termination Laws
Although at-will employment allows an employer to terminate a worker for any reason (or even no reason), state and federal laws outline specific circumstances under which an employer has wrongfully terminated an employee. Examples of circumstances that may constitute a wrongful termination include discrimination based on:
- Race
- National origin
- Religious affiliation
- Age
- Sex and gender
- Sexual orientation
- Pregnancy
- Disability
- Military service or veteran status
Wrongful termination may also involve an employer terminating a worker in retaliation for exercising their rights under federal and state labor laws. For example, a retaliatory termination may occur when a worker files a workers’ compensation claim, requests disability accommodations, requests protected family or medical leave, or reports illegal or unethical conduct by the employer (whistleblower retaliation).
An employee may have a wrongful termination claim by alleging that their employer discharged them in violation of their employment agreement, such as when an agreement expressly limits the reasons the employer may terminate the employee or requires the employer to follow a specific procedure to terminate the employee.
A worker can also suffer a wrongful termination through a constructive discharge, which occurs when an employee resigns due to a work environment that has become so hostile or intolerable that no reasonable person would continue working in that job.
Potential Liability in a Wrongful Termination Claim
An employer may face various forms of liability in a worker’s wrongful termination claim. First, when workers report wrongful termination to state and federal labor departments, those agencies may investigate the wrongful termination claims and impose administrative penalties on an employer that has wrongfully terminated workers. Such penalties may include fines and administrative agency orders compelling the employer to adopt new policies to prevent future wrongful terminations.
An employee who files a wrongful termination lawsuit can seek various forms of legal relief from the courts, including:
- Injunctive relief requires the employer to reinstate the employee
- Compensation for lost back pay from the date of the employee’s termination to the date they obtained new employment or reinstatement
- Compensation for lost front pay if the employee has yet to obtain new employment or obtained a new job that pays less than their old job
- Compensation for ancillary expenses, such as the cost of the employee’s job search
- Compensation for the employee’s emotional distress or damaged reputation if the employer intentionally or knowingly terminated them for a wrongful purpose
How Can Companies Prepare to Face a Wrongful Termination Claim?
Companies can take steps to protect their rights and interests after an employee files a wrongful termination claim. These steps should include gathering all relevant documentation, such as:
- The terminated employee’s employment records, including any employment contracts, performance reviews, and disciplinary records
- Any performance improvement plans, including documentation of the employee’s work performance under the PIP
- Evidence of the worker’s misconduct (if relevant), such as surveillance footage, emails, timecards, or co-worker testimony
- Documentation of the company’s reduction-in-force policy (if relevant)
- Documentation from the employee’s termination, including correspondence provided to the worker detailing the reasons for their termination
Preventative Strategies to Avoid Wrongful Termination Claims
Companies can reduce their risk of liability in wrongful termination claims by adopting specific policies and procedures for employee discipline and termination, including:
- Develop and implement anti-discrimination/harassment policies, including fostering a workplace culture where employees feel comfortable reporting discriminatory or harassing behavior by co-workers or supervisors.
- Carefully document employee disciplinary measures, including written warnings and performance improvement plans. Ensure that PIPs have objectively measurable goals to document whether workers have complied with their plans.
- Document the termination process, including gathering disciplinary records, performance evaluations, and documentation of the reason(s) for a worker’s termination.
- When conducting layoffs or reductions-in-force, implement objective, neutral guidelines for selecting workers for termination, avoiding any criteria that might constitute discrimination, including age, disability, or family status.
How Our Firm Can Defend Your Company Against Wrongful Termination Allegations
After a terminated worker has accused your company of wrongful termination, let the legal team at Mitchell & Sheahan, P.C. advocate for your business’s interests and help you pursue a favorable resolution to the dispute by:
- Investigating the worker’s claims and gathering all relevant evidence to begin building your company’s case
- Developing a defense strategy based on the facts and evidence
- Discussing your company’s legal options, such as pursuing alternative dispute resolution methods like mediation or arbitration
- Communicating with state and federal regulators and the worker’s legal counsel to handle evidence requests or settlement negotiations
- Pursuing a favorable resolution of the dispute, even when that means defending your company’s interests and reputation in court
Contact Mitchell & Sheahan, P.C., to Discuss Your Business’s Legal Options
When an employee accuses your company of wrongful termination, you need experienced legal representation to defend its rights and reputation. Contact Mitchell & Sheahan, P.C., today for a confidential case evaluation. Our wrongful termination defense attorneys will outline your company’s legal options for successfully resolving an employee’s wrongful termination claim.
Mitchell & Sheahan, based in Stratford, CT, also serves clients in Fairfield County, New Haven County, Greenwich, Danbury, White Plains, and New York.