Keith Mack
Texas is an at-will employment state, which means that employers can generally terminate an employee at any time for any lawful reason. However, there are important exceptions to this rule that employers must be aware of. For example, it is illegal to terminate an employee for discriminatory reasons, such as race, colour, religion, sex, disability, or nationality. Other unlawful reasons for termination include an employee filing an overtime wage claim, filing a workers' compensation claim, or refusing to perform an illegal act. If an employee is fired for an unlawful reason, they may be able to file a wrongful termination claim and seek compensation for damages. To avoid legal repercussions, employers in Texas must understand and comply with both federal and state-specific employment laws.
| Characteristics | Values |
|---|---|
| State | Texas |
| Employment type | At-will |
| Termination reasons | Good, bad, or no reason |
| Notice required | No |
| Severance pay | Not required by law |
| Final paycheck | Required |
| Wrongful termination reasons | Discrimination, retaliation, violation of public policy, breach of contract |
| Discrimination grounds | Race, color, national origin, sex, disability, religion, age, citizenship status, pregnancy, military or veteran status |
| Retaliation grounds | Whistleblowing, refusal to perform an illegal act, reporting illegal activities, filing a worker's compensation claim, filing an overtime wage claim |
| Legal recourse | Lawsuit, compensation, job reinstatement |
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What You'll Learn
Discrimination
Texas is an "at-will" employment state, meaning that employers can generally fire employees for any reason or no reason at all. However, there are exceptions to this rule, and employers cannot terminate employees for discriminatory reasons. Discrimination in the context of employment law means treating someone differently or less favourably because of their membership in a protected class. Protected classes in Texas include race, colour, religion, sex, national origin, disability, age (40 or older), and genetic information.
Other forms of discrimination include denying reasonable workplace accommodations for religious beliefs or disabilities and retaliating against employees for complaining about discrimination or participating in related proceedings. Retaliation, another form of wrongful termination, occurs when an employer takes adverse action against an employee for engaging in legally protected activities, such as filing a worker's compensation claim, taking medical leave, or refusing to perform an illegal act.
If an employee believes they have been discriminated against, they can submit a complaint to the Texas Workforce Commission Civil Rights Division (TWCCRD) through the Employment Discrimination Inquiry Submission System (EDISS). They may also need to file a charge with the Equal Employment Opportunity Commission (EEOC) or the National Labor Relations Board (NLRB) within 180 days of the incident. It is important to note that proving wrongful termination or discrimination can be challenging, as employers rarely admit to illegal motives. Therefore, employees should gather evidence and consult with an employment lawyer to navigate the complexities of termination laws and build a strong case.
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Retaliation
In Texas, an employer is prohibited by law from retaliating against an employee for engaging in a "protected activity". This means that an employee has the right to engage in certain conduct without facing retaliation from their employer in the form of a "materially adverse action".
Protected activities include:
- Filing a workers' compensation claim
- Refusing to perform an illegal act
- Taking medical leave
- Attending jury duty
- Serving in the military
- Participating in an official investigation into the employer's practices
- Filing a Charge of Discrimination with the Equal Employment Opportunity Commission (EEOC) or the Texas Workforce Commission, Human Rights Division (TWC)
To win a retaliation claim, an employee must prove that:
- They engaged in a protected activity
- They suffered an adverse employment action (e.g. termination, demotion, shift change)
- The employer's motive behind the adverse employment action was retaliation for the employee engaging in a protected activity
It can be difficult to prove a retaliation claim, as employers rarely admit to an illegal motive for firing an employee. However, it is not necessary for an employee to have direct evidence of retaliation. Courts have affirmed the usefulness of circumstantial evidence in employment cases, and employees can win cases by presenting evidence that the employer's claimed reason for the adverse employment action was a pretext to hide their true, unlawful reason.
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Violation of public policy
Texas is an ""at-will employment" state, meaning employers can generally terminate employees at any time for any lawful reason, even a bad reason or no reason at all. However, termination cannot be for an unlawful reason, such as a violation of public policy.
A violation of public policy occurs when an employer terminates an employee for refusing to engage in an illegal act or for reporting legal violations, safety violations, or discriminatory practices. This is often referred to as the "illegal act exception" or "public policy exception" to the at-will employment doctrine.
For example, under the Occupational Safety and Health Administration (OSHA), it is illegal for an employer to fire an employee for complaining about unsafe working conditions or reporting a violation. Similarly, the Texas Whistleblower Act protects public employees who report legal violations by their employer to a law enforcement authority. Employers must not terminate employees in retaliation for whistleblowing, as this would violate public policy.
Another example of a violation of public policy is when an employer terminates an employee based on discriminatory reasons. Federal and state laws prohibit termination based on race, colour, religion, sex, national origin, disability, age, genetic information, or military/veteran status.
If an employee believes they have been wrongfully terminated for a violation of public policy, they may be able to file a lawsuit against their employer. It is important to act quickly, as the deadline for filing wrongful termination claims in Texas is typically 180 days from the date of dismissal.
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Breach of contract
Texas is an "'at-will' employment state, which means that employers can generally fire employees at any time and for any reason, as long as the reason is not illegal under state or federal law. However, if there is a written or oral employment contract in place, and an employer fires an employee in breach of this contract, the employee may have a legal claim for wrongful termination.
To prove a claim for breach of contract, an employee must first establish the existence of a valid contract. This could be a written contract that promises an employee a job or job security, or an oral contract where the employer indicates a definite intent to be bound to not terminate the employee except in clearly specified circumstances.
Secondly, the employee must show that they performed or tendered performance under the contract. Thirdly, they must demonstrate that the employer breached the contract by terminating their employment without good cause or for an unlawful reason. Finally, the employee must prove that they were damaged as a result of the breach.
If an employee successfully sues their employer for breach of an employment contract, they may be entitled to various damages, including benefit-of-the-bargain damages, reliance damages, specific performance, liquidated damages, and attorney's fees and costs.
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Performance issues
Texas is an "at-will employment" state, which means that employers can generally terminate an employee at any time for any lawful reason, with or without prior notice. However, employers must ensure that the termination does not violate Texas state or federal laws.
To legally terminate an employee for performance issues, employers must follow certain procedures and practices. Proper documentation and record-keeping are critical. All performance-related issues, policy violations, and any related disciplinary actions should be well-documented. This documentation supports the employer's decision to terminate and can be vital in defending against legal claims. Clear policies that are consistently followed help to avoid potential discriminatory or unfair practices and should be outlined in an employee handbook.
If an employee is terminated for performance issues, they are still entitled to their final paycheck, which is due within 6 calendar days of discharge under the Texas Payday Law. Terminated employees should also ensure their contact information is up to date with the employer for receiving final documents, such as the W-2 Form for tax purposes.
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Frequently asked questions
Texas, like most other U.S. states, operates under the "at-will" employment doctrine, which means that employers can fire employees at any time for any lawful reason. This could be a good reason, a bad reason, or no reason at all.
Unlawful reasons for termination include discrimination based on race, colour, religion, sex, nationality, disability, pregnancy, age, or military status, as well as retaliation for an employee exercising their legal rights, such as filing a worker's compensation claim or refusing to perform an illegal act.
If you believe you have been wrongfully terminated, it is important to seek legal aid from experienced employment lawyers, who can help you assemble a case against your former employer and potentially help you get your job back or receive reasonable compensation.
To terminate an employee lawfully in Texas, employers should consult with HR and legal counsel, document clear and legal reasons for termination, and handle the termination process professionally and respectfully.
