Wrongful Termination: Were You Unlawfully Fired?

It is a general assumption that an employee can be fired whenever a boss wants or needs to do so. After all, the boss is the one in charge, right? Actually, there is a legal foundation for an employee’s right to keep his or her job. The legal theory is called “employment-at-will” and it has been held to be the general rule in Texas, except for a few well-defined exceptions.

Employment-At-Will Rule

The “employment-at-will” rule means that an employer can fire an employee for a good reason, a bad reason, or no reason at all. An employee who is terminated in violation of this rule may be entitled to bring a claim against his or her employer and recover damages resulting from the wrongful termination.

The exceptions to this rule are: (1) when the firing violates a written contract or agreement, which is called a “breach of contract” claim; (2) when the firing violates an implied contract, which is called a “breach of the covenant of good faith and fair dealing” claim; (3) when the firing is made in violation of a public policy, which is called a “tort” claim; or (4) when the firing violates an anti-discrimination statute, which is called a “statutory” claim.

Breach of Contract Claim

The first exception to the employment-at-will rule is when an employer has a written contract with an employee and the firing violates one or more of the terms of that contract. The contract may be for a specific period of time, for a certain “term” of employment, or for “at-will” employment. It may be expressed in a job description, an employee handbook, or in a stand-alone contract.

For example, if your employee handbook says that you will receive two weeks’ notice prior to being terminated “for cause,” you may have a contract right not to be fired without two weeks’ notice. Or, if your written employment contract says that you are employed by the company “at-will” but defines “at-will” to mean that you can only be fired for “cause,” you may have a contract right not to be fired without “cause.”

Breach of the Covenant of Good Faith and Fair Dealing Claim

The second exception to the employment-at-will rule is when an employer has made an implied promise of good faith and fair dealing to an employee. This claim is sometimes called a “breach of the implied covenant of good faith and fair dealing.” For example, if you are working for an employer that pays you based on the number of sales or accounts that you bring in and your employer has told you that you will never be fired as long as you do a good job, an implied contract may have been created.

If your employer then fires you for no reason, you may have a claim for breach of the implied covenant of good faith and fair dealing. In addition, if your employer tells you that you will receive a promotion and raises if you work hard and then do not promote you or give you a raise, you may have a claim for breach of the implied covenant of good faith and fair dealing.

Tort Claim

The third exception to the employment-at-will rule is when an employee is fired in violation of a public policy. For example, if you are fired for reporting your employer for a safety violation, you may have a claim under state or federal law. This type of claim is sometimes called a “tort” claim because it is considered to be a civil wrong.

Statutory Claim

The fourth exception to the employment-at-will rule is when an employee is fired in violation of an anti-discrimination statute. These statutes are enforced by the Equal Employment Opportunity Commission (“EEOC”) and the Texas Commission on Human Rights (“TCHR”). For example, if you are fired because of your race, gender, religion, or national origin, or because you have made a complaint about discrimination at work, you may have a claim under the federal Civil Rights Act of 1964, the Americans with Disabilities Act, the Age Discrimination in Employment Act, or the Equal Pay Act.

Alternatively, if you are fired in violation of state law, you may have a claim under the Texas Commission on Human Rights Act. If you have a claim under any of these laws, you must first file a complaint with the EEOC or the TCHR within 300 days after the date that the act of discrimination occurred. The agency will conduct an investigation and, if it finds that discrimination occurred, it may ask your employer to voluntarily remedy the situation or file a lawsuit on your behalf.

If the agency does not believe that discrimination occurred, or if your employer does not agree to remedy the situation, you will receive a “right to sue” letter. Once you receive the right-to-sue letter, you will generally have 90 days within which to file suit in federal or state court or both.

Should You Contact an Attorney?

If you have been fired and you believe that you have a claim against your employer, you should contact an attorney to discuss the matter. An attorney will tell you whether you have a claim, what the claim is worth, and how to proceed. It is important to consult with an attorney as soon as possible because there are time limits on the filing of claims. As a general rule, you should not wait more than 90 days after the date you are fired to speak with an attorney.

Many claims against employers are very complicated and can be difficult for an individual to prove on his or her own. In addition, many employers have insurance policies that will pay a portion of the judgment if you win, and have attorneys that are paid to defend against such claims.

If you have a claim against your employer, you should contact a lawyer to discuss the matter and to help you decide whether or not it is in your best interest to bring a claim. Many lawyers offer a free initial consultation to discuss your particular situation and to help you determine whether or not you have a claim.

Some lawyers represent clients on a contingency basis, which means that the lawyer gets paid only if he or she wins the case. You should discuss this issue with the attorney prior to hiring one.

Our Lawyers can help determine if your firing was wrongful.