Losing your job can be difficult under any circumstances. It can be even more frustrating when you believe you were fired because you reported wrongdoing, exercised a legal right, refused to participate in unlawful conduct, or because of a protected characteristic.
North Carolina generally follows the employment-at-will doctrine. This means that, in many situations, an employer can terminate an employee without providing a specific reason. But there are important exceptions.
An employee may have a wrongful discharge claim when the termination violates North Carolina public policy or another law protecting employees.
Our North Carolina employment lawyers help employees understand their rights after a termination that may have been unlawful. We can review what happened, identify the laws that may apply, and explain your legal options.
With more than 70 years of combined experience, our North Carolina wrongful discharge lawyers deliver more.
Wrongful discharge, sometimes called wrongful termination, occurs when an employee is fired for a reason that violates the law or established public policy.
North Carolina recognizes a public-policy exception to the general rule that employment is at will. Courts have recognized wrongful discharge claims in circumstances involving conduct such as firing an employee for refusing to violate the law, engaging in legally protected activity, or because of conduct by the employer that violates public policy.
Not every unfair termination is legally wrongful.
For example, an employer may generally terminate an at-will employee because of poor performance, personality conflicts, restructuring, or other lawful reasons.
The reason for the termination matters.
This means that when there is no contract establishing a definite term of employment, either the employer or employee can generally end the employment relationship at any time.
However, at-will employment does not give an employer the right to terminate someone for every possible reason. North Carolina recognizes exceptions when a termination violates public policy or another applicable law.
This distinction is important when determining whether a termination may support a wrongful discharge claim.
An employer generally has broad discretion to terminate an at-will employee, but the reason for the termination cannot violate applicable employment laws or recognized public policy.
An employer generally cannot lawfully fire an employee because of a protected characteristic covered by federal anti-discrimination laws, or in retaliation for certain protected activities.
North Carolina law may also protect employees who refuse to engage in conduct that violates public policy.
The specific law that applies depends on why the employee was terminated.
A termination may raise wrongful discharge concerns when an employee is fired for reasons such as:
The specific protections available depend on the circumstances and the law involved.
It depends on what you reported and which law applies.
Some employees are protected from retaliation when they report or oppose unlawful conduct. North Carolina courts have also recognized wrongful discharge claims in circumstances where an employee was terminated for refusing to violate the law or participate in conduct that violated public policy.
Not every complaint to an employer is automatically protected, however.
The nature of the conduct, what the employee reported, who received the report, and what happened afterward can all matter.
An employee may have a wrongful discharge claim when they are terminated for refusing to participate in conduct that violates the law or public policy.
The North Carolina Supreme Court recognized this type of public-policy exception in Coman v. Thomas Manufacturing Co., involving an employee who refused to violate federal transportation regulations and falsify records.
The specific facts of the situation are important when determining whether the conduct is protected.
An employee may be protected from retaliation for opposing unlawful discrimination or participating in an employment discrimination proceeding.
For example, retaliation may involve termination after an employee complains about discrimination, participates in an investigation, or serves as a witness in an employment discrimination matter. The EEOC recognizes these activities as potentially protected from retaliation.
The employee’s complaint does not necessarily have to ultimately result in a successful discrimination claim for the employee to have protection against retaliation, although other requirements still apply.
North Carolina law provides protections for employees who exercise rights under the workers’ compensation system.
If you were terminated after suffering a workplace injury or pursuing workers’ compensation benefits, the circumstances surrounding the termination may be important.
The timing alone does not necessarily prove that a termination was unlawful. However, communications, company policies, treatment by supervisors, and the employer’s stated reason for the termination may all be relevant.
It depends on the reason for the leave and the laws that apply.
Certain employees may have rights to protected leave under federal or state law. Medical leave may also intersect with disability accommodation requirements under the Americans with Disabilities Act.
An employer may generally enforce legitimate attendance and leave policies, but it cannot use an employee’s protected leave, disability, or protected activity as a basis for unlawful discrimination or retaliation.
The Family and Medical Leave Act provides eligible employees with job-protected leave for qualifying reasons.
An employer generally cannot retaliate against an employee for exercising rights protected by the FMLA.
However, FMLA eligibility and coverage requirements apply, and not every employee or employer is covered.
If you were fired after taking or requesting FMLA leave, the details of your employment, leave request, and termination may be important.
Employees may have legal protections when they exercise rights under applicable wage and hour laws.
Examples can include raising concerns about unpaid wages, overtime, minimum wage violations, or other wage-related issues.
Whether a termination is unlawful depends on the law involved and the circumstances surrounding the employee’s complaint.
Some workplace safety complaints and activities may be protected by federal or state law.
If you reported unsafe conditions and were subsequently fired, the nature of the safety complaint, where it was reported, and what happened afterward can be important.
Employees should preserve copies of safety complaints, emails, text messages, reports, and other communications whenever possible.
No. Federal employment laws prohibit covered employers from discriminating against employees based on protected characteristics.
Depending on the law and employer, protected characteristics can include race, color, religion, sex, national origin, disability, age, and genetic information. Federal law also protects against certain forms of retaliation.
A termination based on a protected characteristic may support a discrimination claim rather than, or in addition to, a common-law wrongful discharge claim.
An employer may not discriminate against a qualified employee because of a disability when the ADA applies.
Disability-related termination cases can involve issues such as reasonable accommodations, performance expectations, medical leave, attendance, and whether the employee could perform the essential functions of the job with reasonable accommodation.
If your termination occurred after you requested disability accommodation, it may be important to examine both the accommodation issue and the reason given for your termination.
Federal law generally protects workers age 40 and older from age discrimination under the Age Discrimination in Employment Act.
If an employee is terminated because of age, the employee may have an age discrimination claim depending on the circumstances and applicable employer coverage requirements.
Evidence such as comments about age, replacement decisions, treatment of similarly situated employees, and changes in the employee’s job responsibilities may be relevant.
Federal law prohibits covered employers from discriminating against employees because of protected characteristics including race, color, religion, sex, and national origin.
A termination based on one of these characteristics may support an employment discrimination claim.
The evidence may include statements by supervisors, treatment of other employees, employment records, disciplinary history, performance evaluations, and the circumstances surrounding the termination.
Retaliatory discharge occurs when an employer terminates an employee because the employee engaged in legally protected activity.
Protected activity can include opposing unlawful discrimination, participating in an employment discrimination investigation, or filing a discrimination complaint.
The EEOC explains that retaliation generally requires evidence that the employee engaged in protected activity, the employer took a materially adverse action, and the protected activity caused the employer’s action.
Termination is one example of an adverse employment action.
The timing of a termination can be important evidence, particularly when the termination occurs shortly after an employee engages in protected activity.
However, timing alone does not necessarily prove retaliation or wrongful discharge.
Other evidence may include:
Looking at the full timeline can help determine whether the termination may have been unlawful.
An employer may provide a reason for termination that an employee believes is inaccurate.
A false explanation does not automatically make a termination unlawful. However, evidence that the employer’s stated reason was a pretext for discrimination, retaliation, or another unlawful reason can be important.
For example, if an employer claims an employee was fired for poor performance but the employee had consistently received positive reviews until making a protected complaint, the circumstances may warrant further review.
A positive performance history can be relevant evidence in a wrongful termination or discrimination case, particularly when an employer later claims that poor performance was the reason for termination.
However, a good performance review does not by itself establish that a termination was unlawful.
Employment records should be reviewed as a whole, including performance evaluations, disciplinary records, communications, and the timing of employment decisions.
North Carolina employers generally do not have to provide advance warning before terminating an at-will employee unless a contract, company policy, or applicable law provides otherwise.
Being fired without warning does not automatically make a termination wrongful.
The more important question is whether the reason for the termination violated an applicable law, employment agreement, or recognized public policy.
Generally, an at-will employer may terminate an employee without providing a reason.
That does not mean the employer is allowed to terminate the employee for an unlawful reason.
An employer may also be required to provide certain information or documentation in particular circumstances, depending on the applicable law and employment situation.
An employee does not necessarily have to be formally fired to have a potential employment claim.
In some situations, working conditions can become so difficult that an employee believes they had no realistic choice but to resign. This is sometimes referred to as constructive discharge.
Constructive discharge claims can be difficult and are highly dependent on the facts.
If you resigned because you believed your employer was forcing you out after discrimination, retaliation, or another unlawful practice, the circumstances should be carefully reviewed.
Employees may have legal protections when they oppose or report unlawful sexual harassment.
An employer generally cannot retaliate against an employee for engaging in protected activity under federal employment discrimination laws.
If you were fired after reporting harassment, the content of your complaint, who you reported it to, when you made the complaint, and what happened afterward can all be important.
There is no single piece of evidence required for every wrongful discharge case.
Evidence that may be relevant includes:
Keeping these records can help establish what happened before and after your termination.
A severance agreement can affect your legal rights.
Some agreements may contain provisions concerning:
If you believe you were wrongfully terminated, it can be useful to understand what rights you may be giving up before signing an agreement.
Whether you qualify for unemployment benefits depends on the circumstances of your separation and the requirements of North Carolina unemployment law.
A wrongful termination claim and an unemployment claim are separate matters.
Applying for unemployment does not necessarily determine whether you have a wrongful discharge or discrimination claim.
The potential remedies depend on the legal claim involved.
Depending on the circumstances, an employee may potentially seek remedies such as:
Not every wrongful discharge claim allows every type of damages.
The available remedies depend on the specific law supporting the claim and the facts of the case.
At Counsel Carolina, we offer free consultations for employment law matters.
You can speak with a lawyer about what happened, explain the circumstances surrounding your termination, and learn more about the legal options that may be available.
The cost of legal representation depends on the type of claim and the circumstances of the case. We can explain the fee arrangement before you decide whether to move forward.
When you believe you were wrongfully terminated, it is important to have a lawyer who understands the difference between an unfair workplace decision and a legally actionable termination.
A lawyer handling your case should:
