Can You Sue for Wrongful Termination?

What Constitutes Wrongful Termination?

In California and Nevada, employment is generally “at-will,” meaning employers can terminate employees for any reason or no reason. However, there are critical exceptions where terminations are deemed wrongful:

• Discrimination: Under Title VII of the Civil Rights Act and the Americans with Disabilities Act, firing based on race, gender, age, disability, religion, or other protected characteristics is illegal.

• Retaliation: Terminating an employee for engaging in protected activities, such as reporting workplace violations or participating in investigations, is prohibited.

• Breach of Contract: If an employment contract specifies conditions for termination and the employer violates these terms, it may constitute wrongful termination.

• Violation of Public Policy: Firing an employee for reasons that contravene public interest, like refusing to engage in illegal activities, is unlawful.

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Proving Wrongful Termination

To establish a wrongful termination claim, an employee must demonstrate:

1. Protected Activity or Status: Evidence that they belonged to a protected class or engaged in a protected activity.

2. Adverse Employment Action: Proof of termination or other negative employment actions.

3. Causal Connection: A link between the protected activity/status and the termination.

Evidence to Support Claims:

• Documentation: Emails, performance reviews, or written communications indicating discriminatory or retaliatory motives

• Witness Testimonies: Statements from colleagues or others who can corroborate the employee’s claims.

• Comparative Evidence: Instances where similar employees were treated differently under comparable circumstances.

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Statute of Limitations

California:

• Discrimination Claims: Must be filed with the Department of Fair Employment and Housing (DFEH) within one year of the alleged unlawful act.

• Breach of Contract: Generally, a four-year statute of limitations applies.

Nevada:

• Discrimination Claims: These claims must be filed with the Nevada Equal Rights Commission (NERC) within 300 days.

• Common-Law Claims: A two-year statute of limitations is standard.

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Steps to Take if Wrongfully Terminated

1. Document Everything: Keep records of all relevant communications, performance reviews, and any incidents leading up to the termination.

2. File a Complaint: Submit a claim to the appropriate state agency (DFEH in California or NERC in Nevada) within the specified time frame.

3. Consult an Attorney: Seek legal advice to understand your rights and the viability of your claim.

4. Consider Legal Action: If necessary, file a lawsuit within the applicable statute of limitations.

Wrongful Termination: Types, Legal Protections, and Employee Rights

Wrongful termination occurs when an employee is dismissed in violation of legal protections, contractual obligations, or public policy. Recognizing the various forms of unlawful dismissal is crucial for safeguarding employee rights and ensuring fair workplace practices.

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Discrimination-Based Termination

One of the most prevalent forms of wrongful termination is discrimination. Both federal and state laws prohibit employers from firing employees based on:

• Race, color, or ethnicity

• Religion or religious beliefs

• Disability

• Veteran status

• Gender or sex

• Age (40 and over)

• Pregnancy or maternity

• Genetic information

These protections are enshrined in laws such as Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Age Discrimination in Employment Act.

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Retaliation and Whistleblower Protections

Employees are shielded from termination when engaging in legally protected activities, including:

• Filing complaints about workplace discrimination or harassment

• Reporting safety violations or illegal conduct (whistleblowing)

• Participating in investigations or lawsuits against the employer

Retaliatory dismissal in these contexts is unlawful. For instance, in the landmark case Chopourian v. Catholic Healthcare West, the plaintiff was awarded over $167 million after being terminated following complaints about sexual harassment and patient safety violations.

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Fraudulent Inducement and Misrepresentation

If an employer makes false promises or misrepresents job conditions to entice an employee into employment and the employee suffers harm as a result, this may constitute wrongful termination. For example, promising a long-term position knowing it will be short-lived can be grounds for legal action if the employee relies on that promise to their detriment.

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Defamation and Damage to Reputation

Employers who make false or malicious statements about an employee during termination or in references to potential employers can be liable for defamation. Such actions can severely impact the employee’s future job prospects and may warrant compensation for damages.

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Violations of Public Policy

Terminating an employee for reasons that contravene public policy is illegal. Examples include firing someone for:

• Serving on a jury

• Taking legally protected family or medical leave

• Refusing to engage in illicit activities at the employer’s behest

Such terminations undermine societal interests and are prohibited under state and federal laws.

Proving Wrongful Termination

To prove wrongful termination in court, your attorney must present a significant volume of evidence, which is even more true for those employed in at-will states. Evidence such as pay stubs, emails, voicemails, texts, firing/hiring forms, witness statements taken, and employment contracts should be kept, as these are commonly used to build a strong wrongful termination case.

You may be able to sue for wrongful termination if it can be proven that:

• The firing occurred for a discriminatory reason. Any dismissal for a discriminatory reason may be grounds for a wrongful termination case. Suppose an employee believes they were dismissed for race, sexual orientation, age, gender, religious beliefs, ethnicity, maternity status, or genetic information. In that case, they may have a strong case for wrongful termination based on discrimination. If you believe you may have a case based on discrimination, a workplace discrimination attorney can help you get the compensation you deserve.
• Insufficient notice was given. Even if an employee’s dismissal was justified, it may still be considered a wrongful termination if proper notice was not given upon the termination of employment.
• Suppose the employer changed a fundamental contract term. If your employment contract was changed fundamentally without your consent, this can create a situation where you’ve breached the contract without even knowing it. Pay reductions, changes in job titles or responsibilities, changes in work hours, reductions in reporting staff, and the creation of toxic work environments constitute contractual changes that may be able to be sued for. If too much time passes after these changes are made, the employee legally accepts them and may be unable to sue for them any longer.
• If an employer claimed they had cause to fire when they did not. Many employees lose out on severance pay or unemployment benefits because they have been fired for breaching their employment contract, but not all dismissals are rooted in due cause. With the proper evidence, an experienced wrongful termination attorney may be able to prove that you were wrongfully fired even if the employer claimed that it had a legitimate cause for dismissal.
• If an employee was forced to resign under duress, the employee is often not entitled to severance pay. If an employer forces an employee to resign, this can be considered a form of wrongful termination, and the employee may be able to sue for the lost severance pay.
• If an employee was fired in retaliation or for whistleblowing, or if an employee filed a complaint against their employer or filed for workers’ compensation and was retaliated against, this could be grounds for a wrongful termination case if the employee lost their job. Employees cannot be fired for exercising their legal rights, so a wrongful termination attorney often has a strong argument to make in these types of cases.
• Suppose an employer uses defamation to dismiss an employee. When an employer makes untrue, defamatory statements to justify the dismissal of an employee, the employee may be able to sue for wrongful termination over having their character slandered.
• If a dismissal does not follow state or federal laws regarding firing, an employee may have a case for wrongful termination. Employees have many protections that state and federal laws extend when it comes to being fired. If any of these are violated in the dismissal process, an employee may have a case for wrongful termination.

Statute of Limitations for Wrongful Termination

California

In California, the statute of limitations for wrongful termination varies based on the nature of the claim:

• Breach of Implied Contract or Violation of Public Policy: 2 years from the termination date. 

• FEHA Retaliation, WARN Act Violations, or Whistleblower Retaliation: 3 years from the termination date.

• Filing with the California Civil Rights Department (CRD): Employees have 3 years to file an administrative complaint. Once a “Right to Sue” notice is issued, they have 1 year to file a lawsuit in court.

Nevada

Nevada is an “at-will” employment state, but wrongful termination claims can still be pursued under certain conditions:

• Common-Law Wrongful Termination: 2 years from the date of termination.

• Administrative Complaints: The 2 years is tolled while an administrative complaint is pending for 93 days after its conclusion.

Steps to Take If You’ve Been Wrongfully Terminated

Experiencing a wrongful termination can be emotionally and financially devastating. Whether you’re seeking reinstatement or compensation for damages, understanding the appropriate steps is crucial to protecting your rights and pursuing justice.

1. Gather Essential Documentation

Begin by collecting all pertinent documents that can support your case:

• Employment Contract: Outlines the terms and conditions of your employment.

• Company Policies and Handbooks: Provide insight into company procedures and codes of conduct.

• Performance Reviews and Evaluations: Demonstrate your work performance and any commendations.

• Termination Letter or Notices: Detail the reasons provided for your dismissal.

• Email Correspondence and Internal Communications: May contain evidence of discriminatory or retaliatory behavior.

• Witness Statements: Testimonies from colleagues who can attest to your work ethic or any incidents leading to termination.

A comprehensive set of documents strengthens your position when presenting your case to legal professionals or relevant agencies.

2. File a Complaint with the EEOC or State Agency

A complaint must be filed with the Equal Employment Opportunity Commission (EEOC) or the corresponding state agency before a lawsuit for wrongful termination based on discrimination or retaliation can be initiated.

• EEOC Filing Deadlines: You typically have 180 days from the date of the alleged violation to file a charge. This period extends to 300 days if a state or local anti-discrimination law also applies.

• State Agencies:

  • California: Department of Fair Employment and Housing (DFEH) handles such complaints.

  • Nevada: Nevada Equal Rights Commission (NERC) is the appropriate agency.

Filing with these agencies is a prerequisite for obtaining a “Notice of Right to Sue,” which allows you to proceed with a lawsuit in court. 

3. Consult an Experienced Wrongful Termination Attorney

Engaging a seasoned wrongful termination lawyer can significantly influence the outcome of your case. Legal professionals can help:

• Evaluate the Strength of Your Case: Assess the validity of your claims based on collected evidence.

• Navigate Legal Procedures: Ensure all filings and deadlines are met appropriately.

• Negotiate Settlements: Aim for fair compensation without the need for prolonged litigation.

• Represent you in Court: If the case proceeds to trial, advocate.

For residents in California and Nevada, firms like Heidari Law Group specialize in employment law and offer free case evaluations.

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Frequently Asked Questions (FAQs)

Q: What constitutes wrongful termination?

A: Wrongful termination occurs when an employee is dismissed for illegal reasons, such as discrimination based on race, gender, age, religion, or retaliation for whistleblowing or filing a complaint against the employer.

Q: How long do I have to file a wrongful termination lawsuit?

A: After receiving a “Notice of Right to Sue” from the EEOC, you have 90 days to file a lawsuit in federal court.

Q: What compensation can I expect from a wrongful termination claim?

A: Compensation varies but may include:

• Back Pay: Wages lost from the time of termination to the present.

• Front Pay: Estimated future earnings lost due to termination.

• Emotional Distress Damages: Compensation for mental anguish suffered.

• Punitive Damages: In cases of egregious employer misconduct.

Q: Are wrongful termination cases commonly settled out of court?

A: Approximately 90% of wrongful termination cases are settled before trial. Legal representation increases the likelihood of a favorable settlement.

***Disclaimer: The content of this webpage, created by Heidari Law Group, is intended solely for educational purposes. While it endeavors to provide a general understanding of the law, it should not be construed as specific legal advice. Accessing and reading this site does not establish an attorney-client relationship with any member of Heidari Law. Furthermore, please be aware that the legal landscape constantly evolves, potentially rendering some information outdated or inapplicable.