Employment Laws on Firing

Federal and state law protects employees from unlawful termination by providing multiple outlets for terminated workers to pursue a former employer for civil damages. An employer who terminates employees for discriminatory or retaliatory reasons may incur multiple lawsuits as well as investigations from federal and state government agencies. The resulting fines and court judgments could cripple the employer and force the shutdown of his business.

  1. Employment At Will

    • Every state in the country expect Montana has a doctrine of employment at will. This allows an employee and employer to terminate a working relationship at any time without prior notice. This allows the employer and employee to find a better work situation without the need of a formal legal proceeding to separate. This is not to say an employer may fire an employee for any reason. An employer is still bound by federal and state law relating to discrimination in the workplace.

    Discrimination Laws

    • The Civil Rights Act and the Americans with Disabilities Act makes it illegal for an employer to fire an employee based on gender, race, ethnicity, country of origin, marital status, disability or age. An employer is also prohibited under the Family and Medical Leave Act from firing an employee because she is pregnant or has a medical condition caused by childbirth. An employer who terminates an employee in violation of any of these regulations may incur hefty fines, lose business licenses and be vulnerable to a civil lawsuit from the former employee.

    Retaliation Against Employees

    • It is illegal for an employer to terminate an employee as a form of retaliation for the worker asserting his rights under any state or federal statute. For example, an employer who terminates a worker for reporting workplace safety issues to the Occupational Safety and Health Administration is breaking the law. An employee who is fired under such circumstances may file a lawsuit against his former employer to obtain compensatory and punitive damages. The employer may also incur a full investigation from a state or government agency in relation to the employee's work-related complaints.

    Legal Rights and Public Policy

    • An employee is free under law to exercise her legal rights at all times. It is illegal for an employer to fire an employee for exercising these rights including leaving work to vote in a government election, taking leave under the Family and Medical Leave Act or refusing to take a lie detector test as per the Employee Polygraph Protection Act. It is also illegal to fire an employee for refusing to break the law or refusing to perform what the employee perceives as an immoral or unethical act.

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