In North Carolina, employers have broad authority to terminate an employee at any time. That’s because North Carolina is an at-will employment state, which means that an employer can end their worker’s employment for almost any reason, or sometimes, for no reason at all.
However, there are some limits to at-will employment, and in some cases, firing an employee may be illegal. Understanding those limits is essential for both employees and businesses.
Illegal reasons for termination
A company can generally fire an employee for performance concerns, violations of company policies, restructuring or other business-related reasons.
A firing may qualify as wrongful termination if it is based on a protected characteristic, such as:
- Race
- Religion
- Sex
- Pregnancy
- Disability
- National origin
- Age
Employers are also prohibited from retaliating against workers who engage in protected activities. For example, an employee can’t be terminated for reporting harassment or discrimination, taking qualifying medical or family leave or refusing to participate in illegal conduct.
In addition, not every worker is strictly at-will. An employee may have a contract that limits when termination may occur, such as required disciplinary procedures or “for cause” termination provisions.
Executive employees are more likely to work under written agreements. Still, in some cases, even a verbal agreement or written workplace policies can become relevant if there is a legal dispute over termination.
Employers also typically cannot terminate workers for reasons that violate public policy. This could include situations where the employee:
- Had jury duty
- Reported unlawful conduct
- Exercised certain legal rights
Employees who believe they were wrongfully terminated should preserve important records such as performance reviews, disciplinary notices, employee handbooks, emails and any other written communications. It’s also important to be cautious about signing any severance agreements, as some may include waivers of potential legal claims.
There are strict deadlines for filing a wrongful termination claim, depending on the legal basis for the claim. Discussing your situation with a legal representative can help you better understand your rights and available options.