What Are My Legal Rights When Fired from a Job?

Losing a job is disruptive enough, but the impact is worse when it happens for suspicious or unlawful reasons. Though most employees work at-will, meaning you can be fired without warning or cause, not every firing is legal. If your termination stems from discrimination, retaliation, or a breach of contract, it may qualify as wrongful termination.

Beyond why you were let go, you also have financial rights. Final paycheck laws control when you must receive your last wages. Severance agreements can affect what compensation you take home.

Knowing where the law draws the line and when to seek legal counsel can make all the difference in how you move forward.

What Is Employment At-Will?

Under at-will employment, employers retain broad discretion over all hiring and firing decisions. A company does not need a “good” or “fair” reason to remove an at-will employee.

Still, they can’t end an employment relationship for an illegal reason. If they do so, the terminated employee may have a wrongful termination claim.

What Are the Grounds for Wrongful Termination?

A wrongful termination claim involves more than your employer treating you unfairly. It has to be for an illegal reason like the following.

Employment Discrimination

State and federal laws prohibit workplace discrimination based on protected classes. Protected classes include including race, sex, gender identity, sexual orientation, marital status, pregnancy status, religion, national origin, age, and disability.

Workplace discrimination can involve many types of adverse employment actions that an employer takes against an employee because of their membership in a protected class. One adverse action is termination. In many ways, the most adverse employment action of all.

Retaliation

Retaliation is when an employer takes an adverse action against an employee as punishment for engaging in activities protected by public policy.

Protected activities include:

• Acting as a whistleblower by reporting unsafe working conditions to a government agency
• Filing a complaint with human resources about sexual harassment in the workplace
• Taking protected medical leave under federal or state law

“Say you request and take the 12 weeks of medical leave provided under the Family and Medical Leave Act (FMLA) because your spouse has cancer treatments,” says Twila S. White, an employment law attorney in Hermosa Beach, California, who represents employees in wrongful termination and discrimination claims.

“You come back after the 12 weeks, and your employer says goodbye. They can’t do that and try to justify it by saying that you’re an at-will employee. The statute lets you take 12 weeks of medical leave to care for a family member with a serious health condition. You requested and took the time off to meet all the requirements. The employer cannot retaliate against you or look for a reason to get rid of you because of that.”

Breach of an Employment Contract

Some employees have a written contract with their employer that specifies their terms of employment and other provisions. If an employer violates the provisions of an employment contract, the employee may have a valid breach of contract claim.

Additionally, some courts will infer an implied contract from employment policies as laid out in an employee handbook or from assurances by employers regarding continued employment.

Some workers’ employment is controlled by a union. A collective bargaining agreement outlines the process for terminating a union employee. If the employer doesn’t follow the agreement, they can be in breach of employment rights.

Does Your Employer Have To Tell You Why You Were Fired?

Employers are generally not legally required to tell employees why they are being terminated. One near exception to this is mass layoffs. The federal Worker Adjustment and Retraining Notification Act (WARN) requires employers with 100 or more employees to give them advance notice of layoffs or plant closures.

If you have an employment contract, it may have a provision requiring the employer to give notice of termination or an explanation of why the termination is happening.

As a practical matter, employers will often provide some explanation of termination so as to avoid legal disputes down the road or to maintain their reputation as a desirable employer. However, this is not guaranteed by law.

Final Paycheck Laws

The time limit for an employer to issue a final paycheck to a terminated employee varies from state to state. It ranges from immediately to several business days or the next payday.

Factors that determine the amount of time include whether the employee was fired or quit, and whether the employee provided advance notice of quitting.

Continuing Health Insurance with COBRA

Employees are generally entitled to continued healthcare coverage from their former employer following termination. Under the federal Consolidated Omnibus Budget Reconciliation Act (COBRA), employers with 20 or more employees must give terminated employees the option of staying on their company’s healthcare plan.

The duration of continued coverage ranges from 18 months to 36 months. It depends on the “qualifying event” or reason for job loss, such as:

• Quitting
• Getting fired
• Getting reduced hours
• Dying or getting injured (in which case, the employee’s spouse and dependents receive continued coverage)

Am I Eligible for Unemployment Benefits?

Unemployment benefits eligibility is determined by state law and the reason for termination of employment. You are generally entitled to unemployment benefits under the following circumstances:

You Quit Your Job for “Good Cause”

There are many valid reasons to quit your job voluntarily, such as pursuing a new career opportunity or finding a better work-life balance. However, to receive unemployment benefits after quitting, you need a “good cause.” What counts as good cause depends on state laws but generally includes quitting because of harassment, discrimination, unsafe working conditions, or threats of termination. Many states also provide unemployment compensation for employees who quit due to serious illness or injury.

You Were Laid Off

If you were laid off or had drastically decreased work hours, you may be eligible for compensation under your state’s labor laws.

You Were Fired for Reasons Unrelated to Misconduct

For example, if you were fired due to the company needing to downsize for financial reasons, you would be eligible for unemployment compensation. However, if you were fired for serious misconduct in your role, you would not be entitled to compensation.

Understanding Severance Agreements

Severance pay is not mandated by law. You are only entitled to severance pay if you have a severance agreement with your employer. The severance agreement specifies the type and amount of compensation you’re entitled to following termination and is typically based on how long you were with the company.

If your employer has violated the terms of your severance agreement, or you need clarification on what you’re entitled to under a severance package, consider speaking with an employment law attorney about your situation.

Can I Access My Personnel File?

Accessing your personnel file can make a big difference after a termination. Though the rules vary, many states give employees the right to review or request a copy of their file.

Your file usually includes performance reviews, disciplinary records, pay history, and training certifications. It often excludes confidential references or internal investigation notes. Reviewing this information can help you spot evidence of discrimination, retaliation, or a breach of policy.

If you want a copy, submit a written request under the law in your state, and if your employer refuses, reach out to your state labor department or consult an attorney.

Your Right To Be Free from Defamation

Your employer cannot spread false statements that damage your reputation. Workplace defamation happens when an employer or former employer makes untrue claims, whether in a termination letter, a job reference, or conversations with colleagues, that harm your ability to work. These claims may be spoken (slander) or written (libel). A common example is a supervisor telling others you were fired for theft or misconduct without any proof.

For a statement to count as defamation, it must be false, shared with someone else, and cause harm. While employers have some protection when giving references, that protection disappears if they act with malice. If defamation has cost you wages, damaged your career, or caused serious distress, you may be able to seek compensation, including punitive damages in extreme cases.

Keep detailed records of what was said and who heard it, and talk with an employment attorney about your legal options.

Knowing When To Seek Legal Advice

If your job has been terminated and you’re concerned that your legal rights have been violated, whether from wrongful termination or because you haven’t received benefits you’re entitled to by law or contract, consider speaking with an attorney.

Look for a lawyer with previous experience helping employees with legal action. “A lot of times, there are lawyers who don’t regularly practice employment law and may not be as well-versed in those laws as they should be. So problems can arise,” says White. “I try to stay in my lane and handle what I know. I don’t want to be a Jane of all trades, I think that’s when errors can come up.”

In searching for an employment lawyer, “I think that a consumer should look at the attorney’s track record and research that lawyer to see if they’ve handled the type of cases that they are seeking help for,” she adds.