Wrongfully termination suits can occur when a (former) employee accuses you of firing them for an illegal reason. This may involve violation of anti-discrimination laws or a contractual breach. An employee cannot be fired on the basis of her race, gender, ethnic background, religion, or disability. It is also illegal to fire an employee because they lodged a legal complaint against your organization, or because the employee brought the employer’s wrongdoing to light as a whistleblower. Such terminations are considered “retaliation” and are unlawful.
Wrongful termination coverage can cover accusations based any of the following conditions:
- Exceeding “At Will” employment limits (including “forcing” an employee to quit)
- Allegations of violating anti-discrimination laws
- Contractual obligations
- Whistleblower retaliation
- Retaliation for failure to perform illegal acts
- Protected Time Off (i.e. Family Leave Act violations)