Wrongful Termination
Firing an employee for an illegal reason — such as discrimination, retaliation for protected activity, or in breach of an employment contract.
Wrongful termination occurs when an employer fires an employee for an unlawful reason. Most US employees are "at-will" — meaning they can be fired for any reason or no reason, unless that reason is illegal. Illegal reasons include: firing based on a protected characteristic (race, sex, age, national origin, disability, religion under federal law), retaliation for filing a workers' compensation claim, reporting OSHA violations, filing an EEOC charge, or whistleblowing; and breach of an employment contract (express or implied).
At-will employment is the default in 49 states (only Montana limits it). But "at will" does not mean "can fire for any reason" — it means the employer doesn't need a reason, as long as the reason isn't an illegal one. Proving the illegal reason is the challenge: circumstantial evidence like suspicious timing, comparator evidence, prior positive reviews, or statements by managers can establish the necessary inference.
Before filing a wrongful termination lawsuit under federal employment law (Title VII, ADA, ADEA), most employees must first file a charge with the EEOC within 180–300 days of the adverse action. The EEOC issues a "right to sue" letter (automatically after 180 days if not resolved) before a lawsuit can proceed in federal court.
Real-World Example
The employee was fired two weeks after reporting a billing fraud to her supervisor; the suspicious timing, combined with her recent performance review rating her "excellent," helped her attorney argue the termination was retaliatory, resulting in a $175,000 settlement.