Several restrictions on your right to fire employees exist and violating these restrictions can result in an employee bringing a wrongful discharge lawsuit against you. The following are the restrictions against firing that you need to be aware of:

• Discriminatory firing. Numerous federal, state, and local laws may restrict your right to fire an employee for discriminatory reasons.
• Retaliation against employees for exercising protected rights. It is generally unlawful to fire an employee because the employee asserted his or her rights under federal antidiscrimination laws.
• Retaliation against whistleblowers. Some state laws, such as whistleblowing laws, are broader in scope and coverage than similar federal laws with regard to restricting an employer’s right to fire an employee.
• Bad faith employment practices. Courts in some states have ruled that employers are generally obligated to deal fairly and in good faith with their employees when they are firing them.
• Public policy. Courts in almost every state have imposed public policy restrictions on an employer’s right to fire.

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