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At Holden Litigation
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Does at-will employment prevent wrongful termination claims?

On Behalf of | Sep 1, 2025 | Employment Litigation

Those employed at an organization can have a direct impact on its efficiency and reputation. One worker’s poor job performance could lead to bad reviews, negative media coverage and even a lawsuit against the company.

Employers sometimes have to make the difficult decision to terminate employees. They may do so because of disciplinary issues, job performance concerns or financial concerns. Occasionally, the act of terminating an employee result in a wrongful termination lawsuit.

Employees may insist that a company violated their rights by firing them. Do at-will employment laws protect businesses from litigation brought by employees?

Wrongful termination claims are still possible

Both Texas and Oklahoma currently have at-will employment laws. So do most other states. As such, companies can generally terminate workers without advance notice. They do not need to provide a reason for the termination or justify a worker’s firing.

Despite the protection of at-will employment laws, workers can still sometimes claim that they experienced wrongful termination. Typically, these lawsuits involve claims of either discrimination or retaliation.

Employers typically cannot penalize workers for asserting their rights in the workplace. They also can’t target workers for termination based on their protected characteristics like race or religion. The timing of a termination, prior communications with the employee and other minor details can sometimes lend credibility to allegations that a worker was wrongfully terminated.

Companies responding to allegations of wrongful termination often need assistance proving that the termination was lawful. Reviewing communication and employment records may be the first step toward effectively handling a pending employment-related lawsuit.