When a Firing May be Illegal

Some state laws go further and prohibit discrimination because of marital status, AIDS, and sexual orientation.

Courts have also held that discharges were unlawful when they determined that the employer’s action violated a public policy. In one example, an employee was threatened with losing his job when he refused to lie before a grand jury as ordered by his supervisor. In another case, a discharged employee had been called for jury duty and was told by his supervisor not to serve.

Closely related to the public policy exception are laws that protect whistle-blowing. This occurs when an employee “blows the whistle” on, or reports, and employer to the authorities for ellegal acts. Some federal laws specifically protect this type of conduct, which protects employees from being fired for making complaints about unfair labor practices, gender discrimination, and unsafe or hazardous conditions. Some states also have laws that forbid the firing of whistle – blowers.

Whistle – blowing raises the conflict between employees duty of loyalty to their employer and their obligation to act ethically and legally. In situations not involving whistle – blowing, loyalty is expected of employees. They can be legally fired for disloyal actions such as selling a company’s trade secrets to a competing firm.

Employees must be careful when they complain to someone on the outside. For example, employees who call a newspaper to complain that their employer is breaking the law can be fired if they are acting unreasonably-that is, if the report is based on hearsay and no effort has been made to confirm its accuracy. Workers who complain are required to act reasonably and in good faith. If they do not, the courts are likely to let the firing stand.

Sometimes employees are not fired but are laid off. This often occurs when a company is in trouble financially or experiences a temporary lag in business. After a period of time, the laid – off workers may get their jobs back. Depending on the company policies or it’s employment contract, the workers may have right to continued health insurance or other benefits during the layoff.

All states have a system of unemployment compensation also called unemployment insurance that protects you if you lose your job through no fault of your own. This system allows you to  collect payments from the government while you look for another job.

Someone who was fired for misconduct is not eligible for unemployment compensation. To apply for unemployment compensation, a person must file an application with the state agency that handles these claims. It is important to do this immediately after being discharged or quitting. because it can take awhile to process the application. Agency staff must investigate all applications, and hearings are sometimes held if employers protest the claims. Employers may protest the payment of unemployment benefits to a former employee because it can result in higher payroll taxes for the employer in the future.