Federal Employment Laws on Wrongful Termination
Federal employment laws have only a little bit to say on the subject of wrongful termination. Employers are free to terminate employment for virtually any reason they choose. The doctrine of at-will employment, which has prevailed in the United States since the middle of the 1800s, leaves employees with only narrow federal protections from even arbitrary or unjustified terminations.
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Basics
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The Fair Labor Standards Act establishes employment policy at the federal level. While requiring minimum wage and overtime pay for all covered workers, the FLSA does not regulate the issue of job terminations. According to the U.S. Department of Labor, employers do not have to provide advance notice or a reason for discharge, nor do they have to follow any specific procedure in the buildup to a discharge. In addition, they face no requirement to pay final wages immediately upon termination.
Discrimination
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Cases of discrimination represent one exception to at-will employment. Employers may not penalize employees, including by terminating them, on the basis of various characteristics: age, ethnic/national origin, sex, religion, race, color, and disability. Most federal discrimination laws cover businesses with 15 or more employees, while the law on age discrimination covers businesses with 20 or more employees. The federal Equal Employment Opportunity Commission looks into potential cases of discrimination in termination and other employment practices, and may seek compensatory and punitive damages on behalf of affected employees.
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Whistleblower
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Another federal limitation on employers' authority to terminate employees applies to whistleblowers. Laws pertaining to occupational safety and health prohibit retaliation against employees who file complaints with their employer, union or federal agency officials regarding issues such as unsafe working conditions, some hazards relating to public safety, and environmental concerns. A related law covers the reporting of certain violations of securities fraud statutes. Employers may take no punitive actions, including termination, against whistleblowers.
Contracts
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The U.S. Department of Labor, which enforces the Fair Labor Standards Act, recognizes contracts as a potential bulwark against at-will employment. Employers may negotiate private contracts with individual employees or labor contracts with unions. Contracts may establish the viable reasons for terminating employees, as well as the process employers must follow preceding a discharge. Employers who go outside the terms of the contract when terminating an employee may be guilty of a breach of contract and subject to legal remedies.
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References
- U.S. Bureau of Labor Statistics; The Employment-at-will Doctrine: Three Major Exceptions; Charles J. Muhl; January 2001
- U.S. Department of Labor: Handy Reference Guide to the Fair Labor Standards Act
- U.S. Equal Employment Opportunity Commission: Federal Laws Prohibiting Job Discrimination Questions and Answers
- U.S. Department of Labor: Whistleblower Protections
- U.S. Department of Labor: Termination
- Law Library -- American Law and Legal Information: Contract Law
