What Pennsylvania Employers Need to Know About Wrongful Termination Claims
As an employer in Pennsylvania, navigating the complexities of employment law can be challenging, especially when it comes to wrongful termination claims. Understanding your legal obligations and how to minimize risk is crucial to protecting your business from costly lawsuits and reputational harm.
At Sweat Law, we specialize in employment law and regularly assist Pennsylvania employers in handling wrongful termination matters. In this blog, we’ll cover what wrongful termination means, common causes of claims, Pennsylvania-specific laws employers must consider, and best practices to reduce the risk of legal disputes.
What Is Wrongful Termination?
Wrongful termination occurs when an employee’s dismissal violates the law or breaches an employment contract or public policy. It is important to note that not every fired employee has a valid wrongful termination claim. Employers in Pennsylvania generally operate under “at-will” employment, meaning either party can end the employment relationship at any time for any legal reason — or no reason at all.
However, termination becomes wrongful if it:
- Violates anti-discrimination laws
- Breaches an employment contract or collective bargaining agreement
- Violates public policy (e.g., firing an employee for reporting illegal activity)
- Retaliates against employees for legally protected activities (like whistleblowing or filing a workers’ compensation claim)
Understanding these boundaries is essential to avoid wrongful termination claims.
Pennsylvania and Federal Laws That Protect Employees
While Pennsylvania is an “at-will” employment state, several laws protect employees from unfair termination:
1. Federal Anti-Discrimination Laws
Employers must comply with federal laws such as Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA), and the Age Discrimination in Employment Act (ADEA). These laws prohibit firing employees based on:
- Race, color, religion, sex, or national origin
- Disability or medical conditions
- Age (40 or older)
2. Pennsylvania Human Relations Act (PHRA)
The PHRA provides similar protections at the state level, often mirroring or supplementing federal protections. It covers discrimination based on race, religion, ancestry, age, sex, and disability, among others.
3. Retaliation Protections
Both federal and Pennsylvania laws prohibit employers from retaliating against employees who file complaints about discrimination, harassment, wage violations, or who participate in investigations.
4. Employment Contracts and Implied Contracts
If an employee has a written contract or an implied contract (based on company policies or statements), firing in violation of those agreements can constitute wrongful termination.
5. Public Policy Exceptions
Pennsylvania recognizes a narrow public policy exception to at-will employment. This means an employer cannot fire an employee if it violates a clear public policy, such as terminating an employee for refusing to engage in illegal activities or for reporting safety violations.
Common Wrongful Termination Claims in Pennsylvania
Employers should be aware of frequent bases for wrongful termination lawsuits, including:
- Discrimination claims: Alleging termination due to protected characteristics.
- Retaliation claims: Firing after an employee reports harassment or safety concerns.
- Breach of contract claims: Termination that violates the terms of a written or implied contract.
- Whistleblower claims: Firing employees for reporting illegal or unethical behavior.
- Violations of the Family and Medical Leave Act (FMLA): Terminating employees for taking protected medical leave.
How Pennsylvania Employers Can Reduce the Risk of Wrongful Termination Claims
1. Maintain Clear, Consistent Policies
Develop clear employee handbooks and termination policies that comply with federal and state laws. Make sure policies are communicated and applied consistently to all employees.
2. Document Performance Issues
Keep thorough records of employee performance problems, disciplinary actions, and communications. Objective documentation helps justify termination decisions if challenged.
3. Train Managers and Supervisors
Ensure those involved in hiring and firing understand the legal boundaries. Training on anti-discrimination laws, harassment, and retaliation is essential.
4. Conduct Fair Investigations
If an employee files a complaint, promptly and thoroughly investigate before taking adverse action. This can prevent retaliatory claims.
5. Use Termination Letters
Provide clear written notice when terminating employment, stating the reason in a professional and factual manner.
6. Consult Employment Law Counsel
Before terminating employees in sensitive situations—such as those on leave, with disabilities, or involved in complaints—consult with an experienced employment attorney to minimize risks.
What To Do If You Face a Wrongful Termination Claim
If your business is served with a wrongful termination claim or lawsuit, taking prompt and strategic action is vital. At Sweat Law, we help Pennsylvania employers:
- Assess the claim’s merits
- Collect and preserve evidence
- Develop a defense strategy
- Negotiate settlements or pursue litigation
Early involvement of legal counsel often leads to better outcomes, reduced costs, and preservation of your business reputation.
Wrongful termination claims are a serious concern for Pennsylvania employers, but understanding the laws and taking proactive steps can significantly reduce your risk. Remember that clear policies, consistent practices, careful documentation, and professional legal advice are your best defenses.
At Sweat Law, we are committed to helping Pennsylvania employers navigate employment law challenges, protect their interests, and resolve disputes effectively. If you have questions about wrongful termination or need guidance on an employment issue, contact Sweat Law today.