Wrongful Termination Statutes

by Ruth Mayhew

Wrongful termination occurs when an employer engages in unfair employment practices by ending the working relationship based on discriminatory actions. Federal and state civil rights laws govern workplace provisions against discriminatory employment practices. Employers also may be subject to wrongful termination claims if they violate laws or doctrines that prohibit them from exercising their rights under the employment-at-will doctrine.

Employment At Will

Most private-sector employers reserve their right to end the employment relationship by asserting the employment-at-will doctrine. Employment-at-will is neither a statute nor a law. It's a doctrine that permits an employer to terminate an employee at any time, for any reason or for no reason, with or without notice. Companies print employment-at-will disclaimers on their employment applications and in employee handbooks. In addition, many companies incorporate the disclaimer into their online application systems.

Montana Wrongful Discharge

As of publication, Montana is the only state with a wrongful discharge statute that prohibits employment-at-will terminations. Under the Montana Wrongful Discharge from Employment Act, employers must have just cause for terminating an employee after he has completed the company's probationary period. If the employer does not have a probationary period, Montana law sets the threshold at six months. After six months, employers in Montana cannot exercise their right to terminate workers based on the employment-at-will doctrine or it may be considered wrongful termination.

Employment Contract Exception

Employees who are covered under an employment agreement or labor union contract also are not subject to the employment-at-will doctrine. Employment contracts -- such as the ones for high-profile executives -- generally have a clause that requires advance written notice of the company's intent to terminate the agreement. An employer who does not adhere to the terms and conditions of an employment contract may be charged with wrongful termination. Likewise, a labor union contract, often called a collective bargaining agreement, prohibits employers from terminating a union employee without just cause. Union contracts specifically state that employers cannot exercise their rights under the employment-at-will doctrine to terminate a union worker.

Public Policy Exception

It's unlawful to use the employment-at-will doctrine to justify terminating an employee who exercises his public policy rights. Public policy rights include actions such as filing a workers compensation claim, whistle-blowing or testifying in a case against the employer who is named as a defendant in a lawsuit. For example, if Jane Doe files a discrimination lawsuit against ABC Company and names John Smith as a witness, John can be subpoenaed to testify in court. If ABC Company then fires John, he can claim that he was wrongfully terminated for exercising his rights under public policy.

Federal Anti-Discrimination Laws

Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967 and the Americans with Disabilities Act of 1990 together prohibit workplace discrimination based on non-job-related factors. Firing an employee based on age, color, disability, national origin, race, religion or sex constitutes wrongful termination, because these factors are unrelated to the job. Employees who believe they have been wrongfully terminated or discriminated against can file a formal charge of discrimination with the U.S. Equal Employment Opportunity Commission

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