Losing your job can be frustrating, stressful, and confusing. You may worry about paying your bills and whether being fired will affect your career prospects. Believing your boss terminated you for an unfair reason is even more upsetting. But do you have any options if you live in an at-will employment state?
Thankfully, you do. There are several legal exceptions to the at-will rule. If your employer violated one of these exceptions, you may seek back pay, compensation for emotional distress, and other damages. This post covers what to know about wrongful termination in an at-will employment state like North Carolina.
What Is At-Will Employment?
At-will employment means that you or your employer can end your employment at any time and for any reason — or no reason at all. The vast majority of US states follow at-will employment models, including North Carolina. In North Carolina at-will employees are employees without contract terms specifying the duration of employment or the reasons for discharge.
Employers may also change your job duties, pay, and benefits for no reason. Even if you are an outstanding worker, your boss can lower your salary, modify your hours, or demote you whenever they want. Additionally, they have no legal obligation to show you your personnel files or say why you are being fired.
While this sounds scary, it doesn’t mean you have no rights. State and federal laws prohibit employers from firing employees under certain circumstances.
What Are the Exceptions to At-Will Employment Laws?
The exceptions to at-will employment laws fall into the following three broad categories.
1. Violations of Anti-Discrimination Laws
Employers may not violate an employee’s civil rights. Both state and federal laws prohibit job terminations based on discrimination against an employee’s protected characteristics. Protected categories include the following:
- Race, ethnicity, and color
- Age (if 40 or older)
- Sex (including sexual harassment)
- Pregnancy status
- Religion
- Disability
- Citizenship status
In addition, North Carolina statutes protect employees from employer retaliation for engaging in certain covered activities. The Retaliatory Employment Discrimination Act (REDA) prohibits terminations for the following:
- Filing a discrimination or sexual harassment complaint
- Reporting unethical or illegal activities
- Filing a workers’ compensation claim
- Making a workplace safety complaint
- Seeking domestic violence protective orders
- Participating in the National Guard
2. Violations of Other Laws or Public Policy
Many states provide public policy exceptions to at-will employment rules. In other words, they protect employees against termination for reasons society considers morally or ethically wrong, such as firing someone for participating in jury duty.
In North Carolina, employers cannot fire you for refusing to break the law or asserting rights given to you by state statute. Examples include taking family leave, participating in military service, and using workers’ compensation benefits. North Carolina has a common law tort cause of action for wrongful discharge in contravention of public policy.
3. Violations of Contract Terms
Finally, at-will employment in North Carolina does not apply to employees with contract terms inconsistent with at-will status. These include contracts that define a minimum employment period, limit the reasons for termination of the employment relationship, or require a process your employer must follow before firing you. These provisions may be in a formal, written contract, signed employee handbook, or collective bargaining agreement; however, many employers expressly preserve at-will employment.
Note that the above lists are not all-inclusive. If you believe you’ve been terminated unfairly, contact an experienced employment law firm to evaluate your case and determine whether you qualify to seek compensation.
What Are My Options After Wrongful Termination in an At-Will Employment State?
If you were not fired for misconduct, you may file for North Carolina unemployment after losing your job. Misconduct includes actions like violating a drug policy, lying on employment applications, or stealing company property. However, if your employer terminates your employment due to lack of skill or company downsizing, you can still qualify for unemployment.
Another option in North Carolina is filing a wrongful termination lawsuit. To succeed, you must prove that your employer fired you for an illegal reason. If your boss provided a legitimate reason, you may have to prove it is a pretext or a mixed motive termination. Wrongful termination claims may qualify for lost past and future wages, compensation for psychological distress, and reinstatement to your former position.
Contact Our NC Employment Law Attorneys Today
Now that you know what constitutes wrongful termination in an at-will employment state like North Carolina, you may be considering filing a lawsuit. The experienced team at Anderson Jones, PLLC, can guide you through the process. Our knowledgeable lawyers will answer your questions, explain your rights, and discuss your legal options. Call us at 919-277-2541 to schedule a consultation today.