Wrongful Termination in Texas: When Can You Sue Your Employer?
In this guide, we’ll explore what constitutes wrongful termination in Texas and when you can sue your employer.
Losing a job can be devastating, especially when it feels unjust. In Texas, which is an “at-will” employment state, employers generally have the right to terminate employees at any time and for almost any reason. However, there are legal exceptions. If you believe you’ve been fired unlawfully, you might have grounds to file a lawsuit. In this guide, we’ll explore what constitutes wrongful termination in Texas, when you can sue your employer, and how to protect your rights.
Understanding At-Will Employment in Texas
Texas adheres to the at-will employment doctrine, which means that either the employer or the employee can end the employment relationship at any time, with or without cause, and with or without notice.
However, this rule is not absolute. Wrongful termination in Texas occurs when an employer fires an employee for reasons that violate federal or state laws, employment contracts, or public policy.
What Is Wrongful Termination?
Wrongful termination refers to firing an employee for illegal reasons. While an employer might claim the firing was due to poor performance or restructuring, if the real reason violates your legal rights, you may have a claim.
In Texas, wrongful termination cases typically fall under the following categories:
- Discrimination
- Retaliation
- Violation of Employment Contracts
- Constructive Discharge
- Refusal to Commit an Illegal Act
- Whistleblower Protection
1. Termination Based on Discrimination
Under both federal and Texas state laws, it is illegal for employers to terminate employees based on certain protected characteristics. These include:
- Race or Color
- National Origin
- Sex or Gender (including pregnancy and sexual orientation)
- Religion
- Age (40 and over)
- Disability
- Genetic Information
The Texas Labor Code and federal laws like Title VII of the Civil Rights Act, Americans with Disabilities Act (ADA), and the Age Discrimination in Employment Act (ADEA) provide protections.
Example: If you were let go after disclosing a disability or shortly after announcing your pregnancy, you might be a victim of wrongful termination in Texas due to discrimination.
2. Retaliation for Protected Activities
Employers are prohibited from firing employees for engaging in certain protected activities, such as:
- Reporting harassment or discrimination
- Filing a workers’ compensation claim
- Reporting safety violations
- Taking legally protected leave (e.g., FMLA leave)
- Participating in an investigation
If you’re terminated shortly after engaging in one of these protected activities, it may constitute retaliatory termination.
Example: If you report sexual harassment to HR and are suddenly demoted or terminated, you may have a case for wrongful termination due to retaliation.
3. Breach of Employment Contract
While most employment in Texas is at-will, some employees have written employment contracts or implied agreements that limit an employer’s ability to fire them without cause.
Wrongful termination can occur when an employer violates the terms of such a contract, including promises made in:
- Offer letters
- Employee handbooks
- Collective bargaining agreements
- Oral promises (in some cases)
Example: If your employment contract states you can only be terminated for specific reasons, and none of those apply, you may sue your employer for breach of contract and wrongful termination.
4. Constructive Discharge
Texas recognizes constructive discharge as a form of wrongful termination. This occurs when an employer makes working conditions so intolerable that a reasonable person would feel forced to resign.
To prove constructive discharge, you must show:
- The work environment was objectively hostile or abusive
- The employer intended to force your resignation or was aware of the conditions and did nothing
Example: Being harassed daily due to your religion and having HR ignore complaints may support a claim of constructive wrongful termination in Texas.
5. Refusal to Commit an Illegal Act
Texas law protects employees who are fired for refusing to commit a criminal act. This is known as the Sabine Pilot exception, named after a Texas Supreme Court case.
Example: If your boss asks you to falsify safety reports and you refuse, only to be terminated, you may have a valid wrongful termination lawsuit in Texas.
6. Whistleblower Protection
Public employees in Texas are protected under the Texas Whistleblower Act, and federal laws may also apply to private-sector workers.
You may be protected if you:
- Report illegal activity by your employer
- Cooperate with a government investigation
- Report fraud, corruption, or environmental violations
Example: If you work for a government agency and report misuse of taxpayer funds and are then fired, you could have a claim for wrongful termination in Texas under whistleblower protection laws.
Filing a Wrongful Termination Claim in Texas
If you believe you were wrongfully terminated, here are the steps you should take:
1. Document Everything
Keep detailed records of:
- Emails, texts, and written communications
- Performance reviews
- Complaints or HR reports
- Witness names and statements
- Timing of your termination vs. protected actions
2. File with the EEOC or Texas Workforce Commission (TWC)
If your claim involves discrimination or retaliation, you must file a charge with the Equal Employment Opportunity Commission (EEOC) or the TWC Civil Rights Division before suing.
- You have 180 days to file with the TWC
- You have 300 days to file with the EEOC (in most cases)
3. Get a Right-to-Sue Letter
Before taking your case to court, you must obtain a “Right-to-Sue” letter from the EEOC or TWC, depending on which agency you used.
4. Consult a Wrongful Termination Lawyer
Employment law is complex. An experienced Texas wrongful termination attorney can help evaluate your case, gather evidence, and file a lawsuit if necessary.
Damages Available in a Wrongful Termination Lawsuit
If you succeed in a wrongful termination lawsuit in Texas, you may be entitled to compensation, including:
- Back pay (lost wages)
- Front pay (future lost earnings)
- Emotional distress
- Punitive damages
- Attorney’s fees
- Reinstatement (in some cases)
The amount and type of compensation depend on the nature of the case and whether federal or state law applies.
Defenses Employers May Use
Employers often defend against wrongful termination claims by arguing:
- The termination was due to legitimate performance issues
- There is no evidence of discrimination or retaliation
- The employee voluntarily resigned
- There is no protected activity or class involved
- The action taken was in compliance with company policy
That’s why it’s crucial to build a strong case with supporting documentation.
How Long Do You Have to Sue for Wrongful Termination in Texas?
The statute of limitations varies depending on the type of claim:
- Discrimination or retaliation claims: Must file with EEOC/TWC within 180–300 days
- Breach of contract: Typically within 4 years
- Whistleblower claims (public employees): Generally 90 days after the adverse action
- Sabine Pilot claims: 2 years from the date of termination
Missing a deadline can result in losing your right to sue.
Tips to Strengthen Your Case
- Act quickly after termination
- Stay professional and avoid social media rants
- Request a copy of your personnel file
- Talk to a lawyer before signing any severance agreement
- Be honest and accurate in all documentation and statements
Final Thoughts on Wrongful Termination in Texas
While Texas employers have broad authority under the at-will employment doctrine, they are not above the law. If you’ve been fired for an illegal reason, you have the right to pursue justice through a wrongful termination claim.
Understanding your rights and the laws surrounding wrongful termination in Texas is the first step toward holding your employer accountable. Whether your termination involved discrimination, retaliation, or breach of contract, legal options may be available to you.
If you believe you were wrongfully terminated, consult an employment attorney to evaluate your situation and take the appropriate steps toward recovery and justice.
Frequently Asked Questions (FAQs)
Can I be fired without warning in Texas?
Yes. Texas is an at-will employment state, meaning employers can terminate employees without warning or cause—unless the firing violates legal protections.
Is it hard to prove wrongful termination in Texas?
It can be challenging without solid evidence. However, with the help of a skilled attorney and proper documentation, you can build a strong case.
Do I need a lawyer to sue for wrongful termination?
It’s highly recommended. Wrongful termination cases involve complex legal standards and procedural requirements that are best handled by an experienced lawyer.
