Wrongful Termination: What to Do If You've Been Fired Illegally

Every state except Montana follows the 'at-will' rule, meaning an employer can fire an employee for any reason or no reason at all. But at-will does not mean unlimited. Federal and state laws carve out major exceptions: an employer cannot fire you for an unlawful reason.

The most common categories of wrongful termination are discrimination, retaliation, breach of contract, and violation of public policy.

It is illegal under federal law to fire an employee because of race, color, national origin, religion, sex (including pregnancy and sexual orientation), age (40+), disability, or genetic information. Many states add categories such as marital status, sexual orientation, gender identity, and veteran status.

Proving discrimination usually requires evidence beyond just being a member of a protected class — for example, a pattern of comments, comparable employees treated differently, or a sudden negative performance review after years of positive ones.

Retaliation is the most common type of EEOC charge filed today. It is illegal to fire someone for filing a complaint of discrimination or harassment, reporting safety violations to OSHA, filing a workers' comp claim, taking FMLA leave, refusing to perform an illegal act, or being a whistleblower.

Timing matters in retaliation cases. A firing that happens shortly after protected activity raises a strong inference of retaliation that the employer must rebut.

If you have a written employment contract that limits the reasons for termination — or guarantees a specific term — your employer cannot fire you in violation of that contract. Some union and government employees also have 'just cause' protection requiring legitimate reasons backed by progressive discipline.

Implied contracts can also exist through employee handbooks and consistent past practice, though most modern handbooks include disclaimers preserving at-will status.

Do not sign a severance agreement right away. Severance agreements typically include a release of all claims — once signed, you lose the ability to sue. Most agreements give you at least 21 days to consider (and 7 days to revoke after signing) if you are over 40.

Save every email, text, performance review, and handbook section relevant to your firing. Write down a detailed timeline while it is fresh. File for unemployment benefits — they are usually available unless you were fired for serious misconduct.

EEOC discrimination charges must generally be filed within 180 or 300 days of the firing, depending on the state. State agency deadlines and statutes of limitations for state-law claims vary widely. Wait too long and you lose the right to sue forever.

Submit your case to National Legal Connect to be matched with employment attorneys who handle wrongful termination claims in your state.