What are wrongful termination laws?

Wrongful termination laws govern when an employer may legally terminate an employee and provide legal remedies to former employees who weren't terminated in accordance with applicable laws, Nolo explains. When an employee is hired "at will," he may be terminated for any legal reason.

If an employee is hired under a contract, that contract may provide limitations on the circumstances under which the employee can be fired. Sometimes employers make implied promises regarding continued employment. A court may decide an employee was illegally fired if the employer breaches an implied promise, according to Nolo. Other reasons for wrongful termination include breaches of good faith, such as firing an employee to prevent his collecting sales commissions or to hire a replacement for lower wages. In addition, firings for reasons such the employee's jury service or whistle-blowing constitute wrongful termination.