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Wrongful Termination Examples: 10 Cases (Federal & CA)

Losing your job suddenly and unexpectedly can put you in a state of deep, emotional shock. But, beyond that emotional impact, being fired from your job can also cause a lot of financial pressure for families. You may be uncertain about what the future holds and analyze whether your employer's decision was fair. In California, where most employment is considered "at-will," an employer generally has the ability to terminate your employment at any time, just as you have the right to quit at any time. But, that does not mean your employer can fire you for illegal reasons.

A termination is considered legally "wrongful" when a worker is fired for an unlawful reason such as discrimination, harassment, retaliation, exercising their protected rights or other employment law violations. A termination can also be wrongful if it violates the terms of an employment agreement.

When you understand real-world examples of wrongful terminations, it can help recognize whether your rights may have been violated. These cases often involve scenarios when the reason for termination an employer states might not match the real motivation behind the firing or layoff.

If you believe that you were fired unlawfully, speaking with an experienced wrongful termination attorney in Los Angeles may help you understand your options and evaluate whether your employer's actions may have crossed legal boundaries. The following examples illustrate common situations that may qualify as wrongful termination under federal and California law.

The Reality of "At-Will" Employment vs. Legal Exceptions

We often see that the term "at-will employment" is often misunderstood to mean that an employer can fire a worker for just about any reason. What "at-will" means is that the employer generally has the right to end an employment arrangement at any time, with or without cause. An employee can do the same without giving any specific reasons. But, the at-will arrangement does not bestow your employer with unlimited power. There are still boundaries they cannot cross.

So, the important issue in wrongful termination cases is not whether an employer had the right to end an employment relationship, but whether the stated reason for the firing was lawful and genuine. This is where the concept of "pretext" comes in. Employers will not openly say if they had an illegal motive for firing you. For example, you'll never hear them say they let you go because you complained about harassment or discrimination in the workplace. Instead, they may give you a different explanation that might seem legitimate on the surface. They might suddenly say an employee is performing poorly or announce a “restructuring” immediately after an employee might have complained about workplace discrimination. 

Pretext essentially refers to a false or misleading reason that is used to hide the real motive behind a termination. When you have evidence that the reason your employer is giving is inconsistent, unsupported or has suspicious timing, you can show that your employer's reason for firing you might not be as straightforward as they say it is.

5 Universal Examples of Wrongful Termination (Federal Protections)

Seeing examples of wrongful termination is probably the best way to understand when a job termination can be unlawful. Here are a few common example that involve federal workplace protections.

A. Discrimination Based on Protected Classes (Title VII & ADA)

Federal laws, such as Title VII of the Civil Rights Act and the Americans with Disabilities Act (ADA), prohibit employers from firing employees because of protected characteristics such as race, religion, national origin, gender, disability, etc. These laws exist so employers understand that they cannot make employment decisions based on their personal bias or stereotypes.

Let's look at an example where an employee with a strong job performance record informs their manager that they need medical treatment for a newly diagnosed health issue and that they may need workplace accommodations as they are coping with the condition. Shortly afterward, the employer states the worker is not “a good culture fit” and terminates them in spite of not having any prior concerns or documentation about performance – until the employee spoke up about the health issue. In this case, the employer's explanation may be viewed as a pretext for disability discrimination.

B. Retaliation for Reporting Harassment

Workers are protected from retaliation when they report harassment in the workplace or participate in workplace investigations. An employer is prohibited from punishing an employee just because they raise concerns about harassment, discrimination or a hostile work environment.

Here's an example of a worker who reports inappropriate comments from a supervisor to the HR department. Within weeks, this employee is fired for allegedly failing to follow minor workplace rules such as coming into work a few minutes late. If the employee's managers previously ignored similar conduct, but now begin documenting it as a problem after the employee's complaint to HR, the termination may be an example of workplace retaliation in the guise of ordinary discipline.

C. Medical Leave Violations (FMLA)

The Family and Medical Leave Act (FMLA) gives eligible employees job-protected leave for qualifying reasons, including serious health conditions, major medical procedures or the birth or care of a newborn child. Employers cannot fire workers simply because they exercised their right to take this protected leave.

Let's look at this example when an employee takes approved FMLA leave for a major surgical procedure. While the employee is away recovering, the company announces that their position was permanently eliminated because of “a department reorganization.” If the employee's role still exists, or if the timing of this “reorganization” closely follows the employee's request for leave, the restructuring explanation may be a pretext for unlawful termination.

D. Whistleblower Retaliation

Federal Whistleblower Retaliation protections exist so employees are protected when they report their employer's illegal activity, financial misconduct, fraud or serious workplace violations through the appropriate government agencies. Firing or retaliating against workers simply because they raised concerns about illegal activities in the workplace is unlawful.

Here's an example of an employee who blows the whistle on suspected financial fraud to a government regulatory agency after noticing irregular financial records. This employee who had received positive performance reviews for years, now suddenly gets several negative performance evaluations and is terminated shortly afterwards for “poor results.” This sudden change in performance evaluations may indicate that the employer's stated reason may not have been the real motive behind the firing.

E. Workers' Compensation Retaliation

Workers who are injured on the job generally have the legal right to seek workers' compensation benefits. Employers can't fire workers simply because they reporting a workplace injury or exercised their right to  file a wrongful termination lawsuit

Let us take the example of an employee who is injured on the job, files a workers' compensation claim and follows medical instructions as he recovers. Soon afterwards, his employer says the company is "downsizing" and eliminates the employee's position. The employer may also claim that the injured worker can no longer perform essential duties without considering the possible workplace accommodations. If the termination is connected to the injury or the workers' comp claim, the employer's explanation may be a cover for retaliation.

Deep Dive: Wrongful Termination California Examples

California provides some of the strongest protections for workers in the country. While California generally follows the at-will employment rule, employers still cannot fire workers for illegal reasons. In California, the Fair Employment and Housing Act (FEHA) and the California Labor Code create important exceptions that safeguard workers from discrimination, harassment, retaliation and other wrongful workplace practices. 

A. Pregnancy and Lactation Discrimination (FEHA)

In California, FEHA prohibits employers from discriminating against employees because they are pregnant, have related medical issues or need accommodations such as lactation. Under California law, employers are required to assess workers based on their ability to do their jobs, and not by making assumptions about their pregnancy or any future leave they may request. 

For instance, consider an employee who tells her manager that she is pregnant and may require some accommodations for it. Following this, her employer removes her from say, her important accounts stating that they are “lightening her workload.” And also, before she begins maternity leave, the company terminates her due to “budget cuts.” If employees who are not pregnant were treated differently here then or the termination and its timing can indicate discrimination because of the employee's pregnancy.

B. Wage and Hour Retaliation (California Labor Code Section 98.6)

California Labor Code Section 98.6 protects employees who exercise their rights under wage and hour laws. So, employers can't punish them for asking about unpaid wages, missed meal or rest breaks, etc.

For example, an employee complains that their employer is not providing required meal breaks, failing to pay overtime or requiring off-the-clock work. Soon after making the complaint, management accuses the employee of having a "poor attitude" or being "insubordinate" and terminates them. If the employee had a strong work performance record before reporting the wage issues, the employer's explanation may be a pretext for retaliation.

C. Kin Care and Sick Leave Retaliation (Labor Code Section 233)

California Labor Code Section 233, often called “Kin Care,” allows eligible employees to use certain accrued sick leave to care for family members who are ill. Employers cannot retaliate against workers for using this protected sick leave.

For example, an employee takes approved sick leave to care for a child with a medical issue. After returning to work, the employer begins criticizing his or her attendance and terminates them for “excessive absenteeism” or being “unreliable.” If the absences were legally protected and previously accepted, the termination may amount to unlawful retaliation.

D. Breach of Implied Contract

Although California is an at-will employment state, an employer may not have those grounds if their actions create an implied agreement with the employee. This can happen when company policies, handbooks or repeated practices indicate that employers will only be terminated under certain specific procedures. 

For example, an employee handbook states that workers will receive gradual or progressive discipline before termination, including a verbal warning, written warning and suspension. Instead, the employer fires an employee immediately without following those steps, the termination may amount to unlawful workplace retaliation

E. Constructive Discharge (Forced to Quit)

Under California law, a resignation can still be viewed as a termination when the employer deliberately creates a hostile work environment and the employee feels the need to quit.

For example, an employer cuts an employee's pay without justification, publicly humiliates them or repeatedly changes their role to make the job impossible. If the employer's actions were meant to push the employee out by creating an intolerable environment, the resignation may be treated as a constructive discharge.

F. Violations of Public Policy (Tameny Claims)

California recognizes wrongful termination claims when a worker is let go for reasons that violate fundamental public policies. These protections prevent employers from punishing workers for engaging in lawful activities or refusing unlawful demands.

For example, an employee is terminated after serving jury duty, taking legally protected time off to vote, or refusing to sign an illegal agreement such as a non-compete clause that violates employee rights. The employer's claim that the firing here was based on performance or business needs may be a pretext and the termination may be viewed as a violation of public policy.

Spotting a Fake Excuse: Evidence the Employee Must Gather

When your employer gives a reason for having fired you, the most important question is whether the reason was genuine or just an excuse. Employers rarely admit to an illegal motive, which is why wrongful termination cases often depend on proof that the employer's stated reason was a pretext. 

Wrongful termination claim: Timeline

An employer's real motivation for the termination of an employee can be questioned when it occurs immediately after the employee has engaged in what is considered a rightful or protected workplace activity. Such activities include, filing a harassment complaint or reporting wage violations, etc. So, the timeline of the employee being terminated here in the following days or weeks serves as substantial evidence of the employer's pretext (and not legitimate grounds) for the wrongful termination claim. 

The employer's explanation comes into question in such cases and his or her wrongdoing is typically connected to the timeline relating to the said protected activity and the firing of the employee. Also, explanations or grounds for the termination that include “reorganization” or “budget cut” or the employee's sudden “poor or lack of performance” can be dubious particularly, if it occurs right after the complaint or protected activity.

Keeping an Evidence Checklist

Preserve and document evidence as soon as possible if you think that you were wrongfully terminated. Make sure that it includes:

  • Performance review records, evaluations, any awards, written praise or commendations from supervisors, etc.
  • A timeline of dates, meetings, any disciplinary action leading up to your termination.
  • Emails, text messages and other communications that show positive feedback as well as changes in treatment after your complaint.
  • Names of witnesses/co-workers who heard conversations or observed changes in your workplace treatment.
  • Employment documents including offer letters, employment agreements, workplace policies and employee handbooks.
  • Records of complaints made to HR, supervisors, government agencies or other channels.
  • Termination documents, written reasons given by the employer and final communications.

Corporate speak such as "performance issues," "restructuring," "not a team player" or "not being the right fit," etc., are typically used to hide what's actually behind the wrongful termination. Understanding how such pretexts works and being able to recognize your situation in these wrongful termination California examples can help you identify the red flags.

If you are in a similar situation, please do not assume you don't have rights simply because your employer makes unjustified claims about why their decision was right. Using an employment lawyer can help you get a maximum settlement for your case.  Contact our experienced employment attorneys as soon as possible to request a free case evaluation and protect your rights.

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You do not have to go through this alone. Contact our Los Angeles Employment law firm for a free case evaluation. We represent our clients on a contingency fee basis, which means that you do not pay any fees unless you win or recover compensation, and you will never have to pay out-of-pocket. California-only. We are unable to help those outside of California. Call (818) 990-8300

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