Employers can terminate you for valid reasons, such as unsatisfactory performance, misconduct, violation of company policies, etc. But in certain situations, it can be against the law.
According to a government website, termination based on discrimination, retaliation, exercising your rights, or a labor law violation is considered wrongful. In such scenarios, you can file a wrongful termination claim.
Filing a wrongful termination claim can feel overwhelming, especially if you are facing financial stress or uncertainty about your future. Many employees are unsure of what the process involves, how long it will take, and what outcomes they can reasonably expect.
Understanding the legal steps ahead of time can make the experience less confusing and help you prepare for what comes next.
Understanding the Basis of a Claim
An employee can file a wrongful termination claim if they’re fired for reasons that violate employment laws or go against their employment contract. To move forward, the employee must show evidence that the termination was unlawful rather than a result of performance issues or company downsizing.
Because employment law is a complex field, many attorneys spend years studying the subject and applying it in real cases. They have to start with a foundational education, like a Juris Doctor (J.D.) degree. According to Cleveland State University, this degree is vital for fulfilling the goal of becoming an attorney. These programs offer externships, mentorship, and supervised clinical programs.
Moreover, online degrees are also available, with 100% of the coursework accessible online. Such online law degree programs enable potential candidates to become attorneys while still engaged in their professional lives.
After completing the basic education, individuals can proceed in their specialization area. Since labor law is complicated, it is best for you to seek support from someone who has a specialization in this field. These lawyers can help you figure out if you have a valid case against your employer.
Do I need a written contract to prove wrongful termination?
No, a written contract is not always necessary. While contracts can strengthen a case, employment laws protect workers even without one. Verbal agreements, company policies, or clear evidence of discriminatory behavior can still serve as a foundation for a wrongful termination claim.
Filing the Claim and the Investigation Process
If grounds for wrongful termination are established, the next step is to file a claim. According to the U.S. Equal Employment Opportunity Commission (EEOC), you can file for different reasons, including:
- Being discriminated against based on your age, race, sex, religion, color, disability, etc.
- Being harassed at work
- Being denied workplace change for genuine purposes like disability, pregnancy, medical condition, etc.
- Being treated unfairly for helping with a discrimination investigation or raising concerns around it
This is known as a ‘Charge of Discrimination’ complaint, which is a requirement for filing a discrimination-related lawsuit against your employer. You have either 180 or 300 days to file a complaint with the EEOC. Once you report it to the EEOC, you can then file an official lawsuit against the employer.
It then goes through an investigative phase. Agencies such as the EEOC or state-level labor boards may review the details, request documents, and conduct interviews with witnesses.
Employees should gather as much documentation as possible to support their claims, as the strength of this evidence directly impacts whether the case moves forward. For many workers, this feels like a waiting game, but it is the foundation upon which the rest of the claim is built.
What happens if my employer refuses to cooperate with the investigation?
If an employer refuses to provide requested documents or testimony, the investigating agency can issue subpoenas or impose penalties. Non-cooperation may also work against the employer if the case advances, as it signals a lack of transparency that courts may interpret unfavorably.
Possible Employer Responses
Employers often contest wrongful termination claims by presenting their own evidence to support their position. They may argue that the dismissal was due to legitimate reasons such as performance problems, company restructuring, or policy violations.
Employers often use performance reviews to defend against wrongful termination claims. As stated by Reuters, these reviews can be a useful tool for employers to win these cases.
Around 49% of companies conduct it and document it well. This usually helps them prevent wrong allegations. However, it can also be used to get out of real cases.
In some cases, employers attempt to resolve the matter early through settlement negotiations. These discussions can result in compensation for lost wages, reinstatement to the former position, or an agreement to part ways with financial support.
It is also common for employers to hire legal teams that specialize in defending against employment claims. They may provide documentation of performance issues, testimony from supervisors, or company policies that they argue justify the termination. This can create an intimidating situation for employees, but it also highlights the importance of having strong legal representation on the employee’s side.
What if my employer offers a severance package before I file a claim?
Employers sometimes offer severance agreements that include clauses waiving your right to sue. Before you sign, you should carefully read the terms and, if you can, get legal advice. Accepting such agreements may prevent you from pursuing a wrongful termination claim later.
The Role of Mediation and Litigation
If early resolution does not work, mediation may be the next step. In mediation, a neutral third party helps both sides talk and reach an agreement. The mediator doesn’t make a decision but guides the conversation toward a compromise.
A lot of disputes are resolved at this stage, which saves both parties the money and stress of a court trial. Even if mediation does not provide everything the employee hoped for, it can still result in meaningful compensation and closure.
If mediation doesn’t work, litigation is the last resort, and the case will go to court. However, most cases do not reach this stage. For instance, the EEOC website shows that there were a total of 88,531 charges filed against employers for wrongful termination in 2024. However, only 111 of these claims led to litigation, while all the others were resolved before that.
Court proceedings can be lengthy, sometimes taking a year or more. Also, the outcome depends on the evidence and how the judge or jury interprets the law. While this route can be emotionally taxing, it provides employees with the chance to present their case and seek a legal judgment fully.
Wrongful termination claims are rarely resolved overnight. They involve a careful review of facts, legal arguments, and sometimes courtroom battles. For many employees, filing a claim isn’t just about getting money; it’s also about holding their employers legally accountable.
By understanding what to expect, individuals can move through the process with greater confidence and ensure that their rights are protected. With preparation, patience, and the right guidance, employees can stand on firmer ground as they navigate a challenging experience in their professional lives.