Resources > Wrongful Termination
A wrongful termination claim is a claim by an employee against his/her former employer for certain legal remedies, usually monetary damages. An employee who has not been terminated but who anticipates a wrongful termination may try to negotiate a severance package.
A severance package might be appropriate where an employee handbook or standing policy provides for such compensation. Often an employer will require an employee to sign an agreement waiving any legal claims against the employer in exchange for the severance package.
A claim for "wrongful termination" simply means an employee is claiming he/she was fired for unlawful reasons. Unlawful reasons for termination include:
- Firing in violation of federal and state anti-discrimination laws;
- Firing as a form of sexual harassment;
- Firing in retaliation for the employee filing a complaint against the employer;
- Firing in violation of written and even oral employment agreements; and
- Firing in violation of labor laws including collective bargaining agreements.
Wrongful termination claims usually result in the employer paying monetary damages to the employee based on the terminated employee's lost income and other expenses. Some wrongful termination claims include “statutory penalties” assessed in accordance with a federal or state regulation. Some wrongful termination claims even include allegations of malicious conduct on the part of the employer giving rise to punitive damages.
Given the high stakes for both the employer and employee, it is important for each to involve their own legal counsel as early as possible to provide guidance through the process leading up to and following termination.
Employers can take preventative measures to reduce exposure to wrongful termination claims. One measure is to regularly train supervisory employees to avoid pitfalls in hiring and firing. Another measure is to give supervisory employees access to legal advice and counsel before they utter those now famous words, "You're Fired"