Wrongful termination, or wrongful discharge, refers to the act of an employer firing someone for acting within his/her legal rights. If a company enters into a contract of employment with an employee it must set out possible reasons for termination within the contract.

Although Arizona follows the standards set by the Federal Labor Standards Act of 1938 and the Civil Rights Act of 1964, it is an “at will” work state, meaning that employers and employees have a wide range of freedoms in terminating the work relationship. “At will” states allow the firing of employees with good reason or without any reason at all; however the termination must not violate the terms of a written contract, or break state or federal laws.

The following are plausible reasons that termination may be considered illegal:
•    Breach of explicit or implied contract: This refers to termination without good cause.
•    Retaliation: Arizona has laws that protect whistleblowers (employees who report illegal or unethical behavior). No employer can terminate an employee for being a whistleblower.
•    Discrimination: If a company consists of 15 or more employees, and employer may not terminate a contract based on religion, national origin, race, age, disability or sex.
•    Constructive Discharge: An employee has not been fired, but quit due to discrimination, sexual harassment or a hostile work environment.
•    Unrecognized Military Leave: Arizona requires an unlimited unpaid time off and guaranteed reinstatement.
•    Jury Duty: An employer must allow unpaid leave without losing sick days, vacation time, and can especially not terminate their employee.

Before filing a claim it is important to understand which things do not qualify for wrongful termination. Although minimum wage in Arizona is $6.75, the state has a “tip credit” of $3. This means that tipped employees can subtract $3 from the minimum wage, under the state’s assumption that tipped employees will make at least $3 in tips every hour they work. Minimum wage for tipped employees is therefore $3.75. Paid time off for voting is required, but only if it is requested at least one day in advance. Arrest convictions can lead to loss of occupational license if the conviction is related to the occupation. Finally, Arizona has no required state family and/or medical leave.

Under Arizona’s statute of limitations law, an employee has 2 years to file a lawsuit, or 180 days to file a claim through the Civil Rights Division. Claims must begin with the EEOC, and are generally pursued in three steps: investigation, mediation/conciliation, and the filing of a lawsuit. Compensation can include financial compensation for lost wages, continuation of benefits, out-placement services to get another job, classification of the termination as voluntary resignation, compensatory damages, compensation for stress and suffering, attorney’s fees, punitive damage to discourage repetition of employer’s actions and even policy changes.

If you think you may have a Phoenix wrongful termination case, contact an experienced employment attorney at Robaina & Kresin PLLC who can help you understand the complexities of potential claims and defenses.