Wrongful Termination Lawsuit: 5 Signs You May Have a Strong Case

  • Sylvia Hysen
  • January 23, 2026
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Losing a job is stressful under any circumstances. When a termination feels sudden, unfair, or tied to something beyond job performance, that stress often turns into confusion and anger.

In many of these situations, a Wrongful Termination Lawsuit may be an option worth exploring. While many employers rely on at-will employment rules, those rules don’t give companies unlimited power.

Certain terminations cross legal lines and may qualify as wrongful termination under federal law or state labor laws.

Understanding the warning signs matters. When you act early, you can protect your rights, preserve evidence, and help avoid missed deadlines under the statute of limitations.

Below are five clear signs that your termination may justify legal action. 

1. Your Termination Followed Discrimination or Retaliation 

A termination raises serious concerns when it follows discrimination or retaliation. Employers aren’t allowed to fire someone because of racial discrimination, age, disability, gender, religion, or any other protected class. The same applies when an employee is let go shortly after reporting harassment, unsafe conditions, or unfair treatment. When timing lines up that closely, it’s rarely a coincidence. 

Retaliation often shows up quietly. You might notice sudden discipline after raising concerns, harsher scrutiny than coworkers face, or a shift in how management treats you once a complaint is on record. Even if the termination is framed as a performance issue, the surrounding facts often tell a different story. 

In New York, employee protections are more detailed, which makes situations like this worth a closer look. The New York labor law gives workers broader protections than many people realize, and employers are held to higher standards when it comes to fairness and accountability. That’s why speaking with a wrongful termination lawyer in New York can help clarify whether what happened to you crossed a legal line under local employment rules.  

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2. You Were Fired After Taking Protected Leave or Exercising Legal Rights 

Taking approved time off or standing up for employment rights shouldn’t put your job at risk. When termination follows closely after medical leave, injury-related time off, or raising concerns about workplace practices, that may be a sign of wrongful dismissal. 

Employers sometimes justify these terminations by suddenly pointing to performance issues that never appeared before. When criticism shows up only after leave begins or after concerns are raised, it often signals something deeper than job performance. 

Other situations raise similar concerns. Reporting unpaid wages, cooperating with an investigation, or raising safety issues, for example, are all actions employees are allowed to take without fear of retaliation. When termination follows one of these steps, the sequence itself can help explain what really drove the decision. 

When filing a lawsuit, make sure you have complete documentation and show it to your employment lawyer. Emails, written warnings, witness statements, and the termination letter often reveal gaps between what’s claimed and what actually happened. Those details become important if the situation escalates. 

3. Your Employer Violated an Employment Contract or Workplace Agreement 

Some jobs come with rules about how termination works. Those rules may be written into an employment contract, a union agreement, or even the company’s own policies. When an employer ignores them, that’s a problem. 

You might’ve been promised notice before termination, or told that discipline would come first. If none of that happened, and the job ended anyway, the employer may have crossed a line. 

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Past treatment matters too in a Wrongful Termination Lawsuit. Strong performance reviews followed by sudden firing don’t add up. Neither does being held to standards that others aren’t. Internal records and coworker accounts often expose those gaps.

4. You Were Forced to Quit Due to an Unbearable Work Environment 

Not all job losses involve a formal termination. Some employees leave because the situation becomes impossible to endure. This happens when ongoing harassment, pressure, or unsafe conditions are allowed to continue despite repeated complaints. When management is aware of the problem and chooses not to intervene, resignation may not be as voluntary as it appears. 

The key issue in a Wrongful Termination Lawsuit is whether a reasonable person would feel they had no real choice but to leave. Written complaints, messages, and coworker observations often help establish that pattern. Some employers may argue that the resignation was voluntary, but that argument weakens when documentation shows repeated complaints and no corrective action.

5. The Termination Explanation Doesn’t Match the Evidence 

Pay close attention to the reason you were given for losing your job. When that explanation doesn’t line up with your actual work history, something may be off.  

A common issue is being told performance was the problem despite solid reviews, raises, or positive feedback right up until termination. Another red flag shows up when the reason keeps changing. First, it’s budget cuts, then restructuring, then misconduct. Employers usually settle on one explanation when it’s genuine. 

What happens after the termination should also be considered. If your role is quickly filled or coworkers in similar positions are kept on, that weakens claims about layoffs or financial pressure. 

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As much as possible, save everything. Emails, schedules, evaluations, and written notices often reveal contradictions that aren’t obvious at first. When the paper trail doesn’t support the employer’s story, their explanation becomes suspicious. 

Wrongful Termination Lawsuit: Signs You May Have a Case

Wrongful termination isn’t always obvious at first, but patterns emerge when you know what to watch for. Discrimination, retaliation, contract violations, forced resignations, and inconsistent explanations often signal deeper legal issues. Acting early helps preserve evidence, meet deadlines, and protect financial recovery options. If termination didn’t align with the law or basic fairness, taking the next legal step may protect your rights and your future. 


Sylvia Hysen is the co-founder and Executive Editor of Millennial Magazine. She started the publication in 2014 with the goal of giving a voice to the generation. When not juggling an editorial calendar, attending the latest business or tech events, or traveling the world reviewing exotic locations and luxury accommodations, she is spending time with her family and snuggling with her kitties.

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