Wrongful Termination: Definition and Examples

Were you terminated from your job and convinced that you were fired wrongfully? You're not alone.

In fact, the U.S. Equal Employment Opportunity Commission (EEOC), a federal agency that administers and enforces civil rights laws against workplace discrimination, handles about 700,000 calls and inquiries regarding employment discrimination each year — almost half of which have to do with wrongful termination. As such, the EEOC ends up securing about $404 million dollars from employers each year.

Here's exactly what wrongful termination is, what qualifies as wrongful termination and how you can prove your wrongful termination.

What Is Wrongful Termination?

• "Firing in violation of federal and state anti-discrimination laws"
• "Firing as a form of sexual harassment"
• "Firing in violation of oral and written employment agreements"
• "Firing in violation of labor laws, including collective bargaining laws"
• "Firing in retaliation for the employee's having filed a complaint or claim against the employer"

• Discrimination (based on race, sex, age, religion or other factors)
• Sexual Harassment
• Breach of Contract
• Retaliation
• Invasion of Privacy

What Qualifies as Wrongful Termination?

1. You were fired because you wouldn't engage in sexual activity with your boss, which is a form of sexual harassment.
2. You were fired because of your gender, race or sexuality, which are all forms of discrimination.
3. You were fired in retaliation for asking for an equal pay raise.

What Does a Wrongful Termination Settlement Look Like?

Now that you know what wrongful termination is and what qualifies as wrongful termination, you might be wondering, what is the average settlement for wrongful termination? 

"Some of these violations carry statutory penalties, while others will result in the employer's payment of damages based on the terminated employee's lost wages and other expenses," FindLaw explains. "Certain wrongful termination cases may raise the possibility that the employer pay punitive damages to the terminated employee, while other cases may carry the prospect of holding more than one wrongdoer responsible for damages."

These settlements usually amount to a lot of money. The average out-of-court settlement is about $40,000, according to the EEOC. Specifically, 10 percent of wrongful termination cases result in $1 million dollar settlements, and the court rules the majority of these cases (about 67 percent) in the plaintiff's favor when they're taken to litigation.

How Do You Prove Wrongful Termination?

If you're wondering, is it hard to prove wrongful termination? The answer is, simply, yes.

Because most states have an "at will" policy when it comes to employment, wrongful termination is difficult to prove. Basically, under this at will policy, either the employer or the employee can terminate employment at any time without consequence.

That said, there are still illegal reasons to terminate an employee. So you can, indeed, prove wrongful termination if you follow the right steps. Here's how to prove that you were wrongfully terminated.

1. Record Your Impression of the Termination

2. Follow up With Your Manager

3. Get Your Facts Together

• Your employer can't fire you for one of the aforementioned illegal reasons.
• You cannot be fired for refusing to perform an illegal act.
• It is illegal for your employer to practice "constructive discharge," which means that they've made your work environment so uncomfortable that you'd quit.

4. Speak to an Attorney to File a Complaint Alleging Wrongful Termination

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