Legal Definitions - wrongful termination

Wrongful termination is when an employee is fired in a way that breaks their employment contract or goes against the law. If an employment contract says that an employee can only be fired for a specific reason, and they are fired without that reason, they can sue for wrongful termination. This usually happens when an employee is fired for no reason, which is allowed under the default rule of at-will employment. However, in some states, an employee can sue for wrongful termination if they can show that they had an implied contract for permanent employment and were fired without proper cause.

For example, if an employee handbook says that termination will only be for cause, and an employee is fired without cause, they may be able to sue for wrongful termination. Another way an employee can sue for wrongful termination is if they were fired for an illegal reason, such as discrimination or retaliation for whistleblowing.

One example of wrongful termination is when an employee is fired for refusing to break the law. In Adams v. George W. Cochran & Co., the employee was fired for refusing to do something illegal, and the court allowed their wrongful termination claim to proceed.

Wrongful termination can also be called wrongful discharge, wrongful firing, wrongful dismissal, illegal discharge, illegal termination, and illegal dismissal.