What Is Wrongful Termination in an At-Will State?
In the United States, most employees work under what’s known as “at-will” employment. This means an employer can terminate an employee at any time, for any reason—or for no reason at all—without advance notice or cause. However, at-will does not give employers the right to fire someone for illegal reasons. When a termination crosses legal boundaries, it becomes wrongful termination, even in an at-will state.
In this blog, we’ll explain what wrongful termination looks like in an at-will employment state, the exceptions to at-will laws, and what to do if you believe your firing was unlawful.
What Does “At-Will” Employment Mean?
At-will employment allows either the employer or the employee to end the working relationship at any time, with or without cause, and with or without notice. The idea is that both parties have the freedom to leave the employment arrangement when they choose.
While this gives employers wide discretion, it doesn’t grant the right to violate laws or contracts. If an employee is fired for an illegal reason, the at-will doctrine no longer applies—and the termination may be considered wrongful.
Wrongful Termination Defined
Wrongful termination occurs when an employee is fired in violation of federal, state, or local laws, or in breach of an employment agreement. Even in at-will states, there are clear legal protections in place that prevent employers from firing employees for certain reasons.
Exceptions to At-Will Employment
Here are the most common exceptions that protect employees from being wrongfully terminated in an at-will state:
1. Discrimination
Federal and state laws prohibit employers from firing someone based on protected characteristics such as:
- Race or ethnicity
- Gender or sexual orientation
- Age (40 or older)
- Religion
- National origin
- Disability
- Pregnancy
If your termination was motivated by bias or prejudice tied to one of these characteristics, it may be considered wrongful—even in an at-will job.
2. Retaliation
It is illegal to fire an employee for engaging in certain protected activities, such as:
- Reporting discrimination or harassment
- Filing a workers’ compensation claim
- Requesting or taking medical or family leave under FMLA
- Reporting safety violations or unethical behavior (whistleblowing)
- Participating in a workplace investigation
For example, if you file a complaint about unsafe working conditions and are fired a week later, your employer may be violating retaliation laws.
3. Breach of Contract
If you have an employment contract—written, oral, or implied—that promises job security or outlines specific conditions for termination, your employer cannot fire you in violation of that agreement. This is an exception to the at-will rule.
Even company policies in employee handbooks can sometimes be viewed as implied contracts, depending on how they are written and enforced.
4. Violation of Public Policy
This occurs when an employer fires someone for reasons that violate broadly accepted public standards or rights. Examples include:
- Terminating an employee for taking jury duty or military leave
- Firing someone for refusing to commit an illegal act
- Letting someone go for reporting a crime or cooperating with law enforcement
- Terminating a worker for voting or participating in civic duties
These terminations may be considered wrongful despite the at-will employment relationship.
5. Constructive Discharge
In some cases, the employer doesn’t fire the employee directly but creates such hostile or intolerable working conditions that the employee is forced to resign. This is called constructive discharge and may be treated as wrongful termination if the conditions stem from discrimination, harassment, or retaliation.
What Doesn’t Qualify as Wrongful Termination in an At-Will State?
While wrongful termination laws offer important protections, not every unfair or frustrating firing qualifies as illegal. For example, the following situations are generally not wrongful in an at-will state:
- Being let go due to poor performance or productivity
- Getting fired because of company downsizing or budget cuts
- Losing your job after a personality conflict or poor fit
- Being terminated without a reason or explanation
Unless one of the legal exceptions applies, these types of terminations are permitted under the at-will doctrine.
What to Do If You Suspect Wrongful Termination
If you believe your firing was illegal, you should:
- Gather Evidence: Save termination letters, emails, performance reviews, and any written communication related to your firing.
- File a Complaint: Depending on the issue, you may need to report your employer to the Equal Employment Opportunity Commission (EEOC), the U.S. Department of Labor, or a state agency like the Maryland Commission on Civil Rights.
- Speak to an Attorney: A qualified wrongful termination lawyer in Maryland can evaluate your case, help you file the right complaints, and pursue compensation through settlement or legal action.
Final Thoughts
At-will employment gives employers flexibility, but it doesn’t give them a free pass to break the law. If you were fired for a discriminatory reason, in retaliation for a protected action, or in violation of a contract, your termination may be wrongful—even in an at-will state.
Know your rights, understand the exceptions, and take action if you suspect your termination crossed the legal line. If you’re looking at wrongful termination lawyers in Maryland, we recommend reaching out to us for consultation.