Most employment contracts are “at will,” meaning an employer may fire an employee for any reason or for no reason at all. An employee may also leave the employer for any reason or for no reason at all.

These would seem the ideal conditions to prevent lawsuits, yet there are many legal exceptions to the basic “at will” premise. Familiarity with the following common
legalities (and their shared themes of fairness, honesty, transparency, and anti-discrimination) can help employers avoid terminating employees for illegal reasons and being sued for wrongful termination.

1. Anti-Discrimination Laws

The most basic violation of these contracts is a termination that violates local, state, or federal anti-discrimination laws. Federal anti-discrimination laws protect employees against being discharged or penalized on the basis of national origin, sex, orientation, disability, race, age, and pregnancy.

2. Good Faith and Fair Dealing

In some instances, courts have ruled in favor of employees who have claimed wrongful termination on the basis of unfair dealings. These have included fabrication of reasons for firing (when the real reason would have been illegal), failure to communicate the undesirable or dangerous aspects of a position (to which the employee later objects), and giving objectionable work assignments to coerce the employee into quitting.

3. Exercising of Legal Rights

An employee cannot be terminated for exercising legal rights, including whistleblowing. This includes reporting an employer for violation of workplace safety laws or for a company practice of not meeting payment agreements to employees.

4. Ordering Illegal Acts

Employees cannot be required to perform a function or duty that violates any workplace laws. In some recent cases, employers unwittingly asked an employee to violate safety laws and fired the employee for refusing. If an employee refuses to perform a duty, the employer should carefully research the legality of that duty before terminating the employee.

5. Legal Time Off

Employers cannot terminate employees for taking time off under a law that allows such, including voting, jury duty, and military service.

6. Contractual Violations

If a written or oral agreement calls for a specific protocol for dealing with poor performance or misconduct, employees may be able to bring a wrongful termination suit. For instance, if the employer handbook calls for three written warnings or a continuation of poor performance for a certain period, these policies must be followed.

The rules governing employee termination are far more complex than the “at will” premise suggests. When in doubt, always obtain legal counsel before taking action against an employee.