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.
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:
Understanding these boundaries is essential to avoid wrongful termination claims.
While Pennsylvania is an “at-will” employment state, several laws protect employees from unfair termination:
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:
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.
Both federal and Pennsylvania laws prohibit employers from retaliating against employees who file complaints about discrimination, harassment, wage violations, or who participate in investigations.
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.
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.
Employers should be aware of frequent bases for wrongful termination lawsuits, including:
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.
Keep thorough records of employee performance problems, disciplinary actions, and communications. Objective documentation helps justify termination decisions if challenged.
Ensure those involved in hiring and firing understand the legal boundaries. Training on anti-discrimination laws, harassment, and retaliation is essential.
If an employee files a complaint, promptly and thoroughly investigate before taking adverse action. This can prevent retaliatory claims.
Provide clear written notice when terminating employment, stating the reason in a professional and factual manner.
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.
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:
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.