Most people who get fired think they might have been wrongfully terminated. The hard truth is that most firings — even unfair, sudden, or seemingly cruel ones — are legal. But some firings are genuinely illegal, and when that's the case, you may be entitled to significant compensation. This guide explains the difference.

Key concept: At-will employment. In most US states, employment is "at-will," meaning your employer can fire you for any reason or no reason at all — with some important exceptions. Those exceptions are what lemon law is about.

What Is Wrongful Termination?

Wrongful termination (also called unlawful termination) is when you're fired for an illegal reason. There are three main categories:

1. Discrimination

It's illegal to fire someone because of a protected characteristic. Federal law protects you from being fired based on:

Many states add additional protected categories, including sexual orientation, gender identity, marital status, and political affiliation. If you were fired and you're in a protected class, and you believe the protected characteristic was a factor in the decision, you may have a discrimination claim.

2. Retaliation

Retaliation is one of the most common wrongful termination claims — and one of the strongest. It's illegal to fire someone for:

The key element is timing. If you filed an OSHA complaint and were fired two weeks later, the timing is powerful evidence of retaliation — even if the employer claims another reason.

3. Violation of Contract

If you had an employment contract — written or implied — that specified the conditions under which you could be fired, and the employer violated those terms, that's wrongful termination. An implied contract can be created by an employee handbook that says employees will only be fired for cause, or by verbal promises made during hiring.

What Wrongful Termination Is NOT

These situations feel unfair but are typically legal:

Unfair isn't the same as illegal. The employer doesn't have to be fair — they have to avoid the specific illegal reasons listed above.

How to Know If You Were Wrongfully Terminated

Ask yourself these questions:

If you answered yes to any of these, it's worth talking to an employment attorney.

What You Can Recover

In a successful wrongful termination claim, you may be entitled to:

What to Do If You Think You Were Wrongfully Terminated

Immediately after being fired:

Critical: If offered severance, you typically have 21 days to consider it (45 days if part of a group layoff) and 7 days to revoke after signing if age discrimination is involved. Do not sign under time pressure without legal advice.

Within 180–300 days of termination:

If you're filing a discrimination claim under federal law, you must file a charge with the EEOC (Equal Employment Opportunity Commission) before you can sue. The deadline is 180 days in states without a state discrimination agency, and 300 days in states that have their own agency (most states). Missing this deadline can bar your claim entirely.

Consult an employment attorney:

Employment attorneys typically work on contingency for wrongful termination cases — meaning you pay nothing unless you win. Many offer free initial consultations. Given the EEOC filing deadlines, consult an attorney as soon as possible after termination.

Check If You Have a Case

Use our free lemon law checker to see if your situation qualifies — takes less than 60 seconds.

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Also dealing with a car problem? If your car keeps breaking down and the dealer can't fix it, lemon law lawyers work on contingency — meaning you pay nothing unless you win.