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Wrongful Termination in Pennsylvania: Understanding At-Will Employment

Pennsylvania is an at-will employment state that provides moderate wrongful termination protections through both state and federal law. Unlike employer-friendly states like Georgia and Texas, Pennsylvania has the Pennsylvania Human Relations Act (PHRA) for discrimination claims and recognizes public policy wrongful termination in specific circumstances.

At-will employment means your employer can generally fire you for any lawful reason or no reason at all. However, termination is illegal if it violates anti-discrimination laws, constitutes retaliation for protected activities, violates clear public policy, or breaches an employment contract.

If you’ve been fired in Pennsylvania, understanding when termination crosses the line from “unfair but legal” to “illegal wrongful termination” is critical to protecting your rights.

At-Will Employment in Pennsylvania

What At-Will Means

Pennsylvania law presumes all employment is at-will unless an exception applies:

Employers can:

  • Fire you for any lawful reason or no reason
  • Fire you without advance notice or warning
  • Fire you without progressive discipline
  • Change job duties, pay, or benefits at any time

Employees can:

  • Quit at any time without notice
  • Leave for any reason
  • No legal obligation to give two weeks’ notice (unless contract requires)

Example: Your employer fires you on Friday afternoon with no warning and no reason given. This is legal under Pennsylvania’s at-will employment doctrine, unless the real (undisclosed) reason is illegal discrimination, retaliation, or public policy violation.

Pennsylvania Courts Enforce At-Will Employment

Pennsylvania Supreme Court has consistently upheld at-will employment:

  • Employee handbooks generally don’t create contracts (unless very clear contract language)
  • Employers have broad discretion in employment decisions
  • “Unfair” treatment doesn’t equal “illegal” termination

However: Pennsylvania recognizes important exceptions to at-will through PHRA, public policy doctrine, and whistleblower law.

Exceptions to At-Will Employment in Pennsylvania

1. Pennsylvania Human Relations Act (PHRA) – Discrimination

Pennsylvania’s state anti-discrimination law prohibits termination based on protected characteristics:

Protected classes under PHRA:

  • Race, color, religion
  • Ancestry, national origin
  • Sex (including pregnancy; sexual orientation and gender identity per case law)
  • Age (40+)
  • Disability (physical and mental)
  • Familial status (housing provision)
  • Use of guide or support animal

Covered employers: 4 or more employees

Key advantage: PHRA covers employers with 4+ employees, while federal Title VII requires 15+ (ADEA requires 20+). This fills the gap for small employers.

Example: You work for an 8-person company. Your boss fires you because you’re pregnant. Federal Title VII doesn’t apply (only 8 employees, requires 15+), but Pennsylvania Human Relations Act does apply (covers 4+ employees). You can file PHRC complaint for pregnancy discrimination.

Filing: Pennsylvania Human Relations Commission (PHRC) within 300 days

Damage advantage: PHRA allows unlimited compensatory and punitive damages (unlike federal Title VII’s employer-size-based caps).

Learn more: Pennsylvania Workplace Discrimination Laws

2. Federal Anti-Discrimination Laws

Title VII (race, color, religion, sex, national origin):

  • Covers employers with 15+ employees
  • File EEOC charge within 300 days in Pennsylvania

Americans with Disabilities Act (ADA) (disability):

  • Covers employers with 15+ employees
  • Requires reasonable accommodation

Age Discrimination in Employment Act (ADEA) (age 40+):

  • Covers employers with 20+ employees

Genetic Information Nondiscrimination Act (GINA):

  • Covers employers with 15+ employees

Example: You work for a 40-employee company. You’re 62 years old and fired during “reorganization.” Replaced by 29-year-old. You have claims under both federal ADEA and Pennsylvania PHRA for age discrimination.

3. Public Policy Wrongful Termination

Pennsylvania recognizes wrongful termination when firing violates “clear public policy.”

Pennsylvania courts have recognized public policy claims for:

Exercising statutory rights:

  • Filing workers’ compensation claim (most established public policy exception)
  • Serving jury duty
  • Voting
  • Military service (National Guard, reserves)

Refusing to violate law:

  • Refusing to commit perjury
  • Refusing to violate professional licensing requirements
  • Refusing to participate in fraud or illegal activity

Reporting employer’s illegal conduct (limited):

  • Pennsylvania Whistleblower Law (43 P.S. § 1421) provides specific protection
  • Public policy may protect reporting violations of law in certain contexts

Example: Your boss orders you to dispose of hazardous waste in violation of EPA regulations. You refuse, citing environmental laws. You’re fired for “insubordination.” This violates Pennsylvania public policy—you cannot be fired for refusing to violate federal environmental laws.

Important limitation: Pennsylvania’s public policy exception is narrower than California’s (which recognizes broad fundamental public policies) but broader than Georgia’s (which requires very specific statutory protection).

Not protected under public policy:

  • Complaining about unfair (but legal) workplace policies
  • Internal disagreements about business decisions
  • “Whistleblowing” about company policy violations (must be violation of law)

4. Pennsylvania Whistleblower Law

43 P.S. § 1421 specifically protects whistleblowers:

Protected activity:

  • Reporting employer’s violation of federal, state, or local law or regulation to supervisor or to public body
  • Refusing to participate in activity that would violate federal, state, or local law

Covered violations: Must be actual or suspected violation of law (not just company policy)

Filing requirement: Must file complaint with Pennsylvania Department of Labor & Industry within 180 days of retaliation

Remedies: Reinstatement, back pay, benefits, actual damages, costs, attorney’s fees

Example: You’re a nurse and discover your employer is billing Medicare for services not provided (fraud). You report this to your supervisor and the Pennsylvania Attorney General. Your employer fires you for “causing problems.” This violates Pennsylvania Whistleblower Law—you’re protected for reporting suspected Medicare fraud.

Important: Pennsylvania Whistleblower Law requires filing complaint with Department of Labor & Industry within 180 days—this is a short deadline.

5. Retaliation for Protected Activities

Pennsylvania and federal laws prohibit retaliation for engaging in protected activities:

PHRA retaliation:

  • Filing PHRC discrimination complaint
  • Testifying in PHRC investigation
  • Opposing discrimination

Federal retaliation:

  • Filing EEOC charge (Title VII, ADA, ADEA)
  • Filing FMLA complaint (taking protected leave)
  • Filing FLSA wage complaint
  • Filing OSHA safety complaint
  • Filing workers’ compensation claim (strongest public policy protection in PA)

Example: You file PHRC charge alleging race discrimination. Ten days later, you’re fired for alleged “poor performance” despite years of excellent reviews. Temporal proximity (10 days) creates strong inference of illegal retaliation under PHRA.

6. Breach of Employment Contract

If you have employment contract, termination violating contract terms is illegal:

Requirements:

  • Written contract (oral contracts hard to prove and subject to at-will presumption)
  • Clear terms limiting at-will employment (e.g., “can only be terminated for cause”)
  • Consideration (something of value exchanged for contract)

Rare in Pennsylvania: Most Pennsylvania employers avoid creating employment contracts and maintain at-will relationships.

Employee handbook: Typically not a contract unless:

  • Very clear, specific contract language
  • Employer intended to create binding obligation
  • Disclaimers negated by specific promises

Example: You have 2-year written employment contract stating you can only be terminated for “willful misconduct, criminal activity, or gross negligence.” Employer fires you in month 15 because new management “wants to bring in their own people.” This breaches the contract (reason given doesn’t meet contract’s “for cause” definition).

Remedies: Lost wages through contract term, damages specified in contract, attorney’s fees if contract provides

Filing deadline: 4 years for written contracts (Pennsylvania statute of limitations)

Common Wrongful Termination Scenarios in Pennsylvania

Scenario 1: Small Employer Discrimination (PHRA Protects)

Situation: You work for a 6-person medical practice. You’re disabled and use a wheelchair. New practice manager takes over and fires you, stating “we need someone who can move around the office more easily.” You’re replaced by a non-disabled person.

Why this is illegal:

  • Disability discrimination (protected under PHRA and ADA)
  • Pennsylvania Human Relations Act applies (6 employees meets 4+ threshold)
  • Federal ADA doesn’t apply (only 6 employees, ADA requires 15+), but state law does
  • Direct evidence of disability bias (explicit statement about wheelchair use)

What to do:

  • File PHRC complaint within 300 days
  • Also file EEOC charge (likely administratively closed due to employer size, but preserves federal claims)
  • Document disability-based statement
  • Show you could perform essential job functions with or without accommodation
  • Seek reinstatement, back pay, compensatory damages (no cap under PHRA)

Scenario 2: Workers’ Compensation Retaliation (Strongest Public Policy)

Situation: You injure your back lifting heavy equipment at work. You file workers’ compensation claim. Two weeks later, your employer fires you, explicitly stating “we can’t afford employees who file comp claims.”

Why this is illegal: Pennsylvania strongly protects workers’ compensation rights. Firing for filing workers’ comp claim is the most established public policy exception in Pennsylvania. Employer’s explicit statement is direct evidence of retaliatory motive.

What to do:

  • File wrongful termination lawsuit based on public policy
  • Cite workers’ comp retaliation as violation of Pennsylvania public policy
  • Preserve employer’s retaliatory statement
  • Continue pursuing workers’ comp claim (separate from wrongful termination)
  • File within 2 years

Scenario 3: Whistleblower Retaliation

Situation: You work for a construction company. You discover your employer is falsifying safety inspection reports in violation of OSHA regulations. You report this to your supervisor and Pennsylvania Department of Labor & Industry. Three weeks later, you’re fired for alleged “attitude problems.”

Why this is illegal:

  • Protected whistleblowing under Pennsylvania Whistleblower Law (43 P.S. § 1421)
  • Reported violation of federal OSHA regulations
  • Public policy violation (can’t fire for reporting illegal conduct)
  • Temporal proximity (3 weeks) suggests retaliation

What to do:

  • File complaint with PA Department of Labor & Industry within 180 days (critical deadline)
  • File wrongful termination lawsuit under Whistleblower Law
  • Document report to supervisor and PA Dept of L&I
  • Preserve evidence of OSHA violations
  • Claim public policy wrongful termination as alternative theory

Scenario 4: FMLA Retaliation

Situation: You take 10 weeks of FMLA leave for surgery and recovery. You provide all required medical certification. Upon return, you’re told your position was “eliminated due to business needs,” but your duties were redistributed to coworkers and a “consultant” (essentially your role) was hired shortly after your leave.

Why this is likely illegal: FMLA prohibits termination for taking protected leave. “Position elimination” is pretext if duties redistributed and similar position created. Classic FMLA interference and retaliation.

What to do:

  • File complaint with U.S. Department of Labor (Wage and Hour Division)
  • File lawsuit in federal or state court within 2-3 years
  • Document that position wasn’t really eliminated (duties redistributed, consultant hired)
  • Show you met all FMLA requirements (certification, notice)
  • Seek reinstatement, back pay, liquidated damages (doubling back pay), attorney’s fees

Scenario 5: Refusing to Violate Law (Public Policy)

Situation: You’re an accountant. Your employer instructs you to falsify financial statements to mislead bank auditors (fraud, securities violations). You refuse, explaining this would violate accounting standards and state/federal law. You’re fired for “not being a team player.”

Why this is illegal: Pennsylvania public policy prohibits firing employee for refusing to violate law. Falsifying financial statements violates Pennsylvania securities laws and federal regulations. You cannot be fired for refusing illegal conduct.

What to do:

  • File wrongful termination lawsuit based on public policy exception
  • Cite specific Pennsylvania and federal laws employer wanted you to violate
  • Emphasize refusal to commit fraud and violate professional standards
  • Document employer’s instruction to falsify records
  • File within 2 years

Scenario 6: At-Will Termination – No Protection (Legal)

Situation: You’ve worked for a company for 7 years with consistently good performance. Company hires new CEO who wants to “shake things up.” CEO fires you along with 20 other longtime employees, stating “we’re bringing in new blood with fresh ideas.” No contract, no discrimination (new hires similar demographics), no protected activity—just management change.

Why this is likely legal: Pennsylvania’s at-will employment allows termination for management changes, business reorganizations, or “no reason” as long as real reason isn’t illegal discrimination, retaliation, or public policy violation.

No protection because:

  • No protected characteristic involved (if similar demographics)
  • No protected activity (complaint, whistleblowing, leave)
  • No contract limiting at-will status
  • No public policy violated
  • Business reorganizations are lawful even if “unfair”

Lesson: Many “unfair” terminations are legal under at-will employment. You need specific evidence of illegal motive (discrimination, retaliation, public policy violation) to overcome at-will presumption.

How to Prove Wrongful Termination in Pennsylvania

For Discrimination Claims (PHRA/Title VII)

McDonnell Douglas burden-shifting framework:

Step 1: Prima facie case (you prove):

  1. You’re in protected class (race, sex, age 40+, disability, etc.)
  2. You were qualified for your job
  3. You were terminated (or suffered other adverse action)
  4. Circumstances suggest discrimination (replaced by person outside protected class, similarly situated employees treated differently, discriminatory comments, etc.)

Step 2: Employer provides legitimate reason:

  • “We fired her for poor performance”
  • “We eliminated the position due to budget cuts”

Step 3: You prove reason is pretext (cover-up):

  • Reason is factually false
  • Reason wasn’t real motivation
  • Evidence shows real reason was discriminatory

Types of Evidence

Direct evidence (rare but powerful):

  • Discriminatory statements by decision-maker
  • Written policies showing discrimination
  • Explicit admission of illegal motive

Circumstantial evidence (more common):

  • Comparative evidence: Similarly situated employees outside protected class treated better
  • Temporal proximity: Termination shortly after protected activity (complaint, leave, whistleblowing)
  • Pretext: Employer’s stated reason is false, inconsistent, or unsupported
  • Statistical evidence: Pattern of discriminating against protected class
  • Shifting explanations: Employer gives different reasons at different times

Example of strong wrongful termination case:

  • You’re 57-year-old employee
  • Manager makes age-related comments (“we need younger energy,” “time to bring in millennials”)
  • You complain to HR about age discrimination
  • One week later, fired for alleged “performance issues”
  • You have excellent performance reviews for 12 years
  • Replaced by 28-year-old with less experience
  • Manager told coworker you were fired for “complaining”

This combines: direct evidence (age comments, admission fired for complaining), temporal proximity (1 week), pretext (excellent reviews contradict “performance” reason), comparative evidence (replaced by significantly younger person).

Damages for Wrongful Termination in Pennsylvania

Pennsylvania Human Relations Act (PHRA) Damages

Back pay: Lost wages from termination to judgment

Front pay: Future lost earnings if reinstatement not feasible

Compensatory damages: Emotional distress, pain and suffering, humiliation

  • No statutory cap under PHRA (major advantage over federal Title VII)

Punitive damages: To punish egregious discrimination

  • No statutory cap under PHRA

Reinstatement: Court can order employer to rehire you

Attorney’s fees: Prevailing plaintiffs recover attorney’s fees from employer

Example: You prove sex discrimination under PHRA at 12-employee company. Jury awards:

  • $110,000 back pay
  • $300,000 compensatory damages (emotional distress, therapy, reputational harm)
  • $500,000 punitive damages
  • Total: $910,000 + attorney’s fees

Under federal Title VII, compensatory + punitive would be capped at $50,000 (for 15-100 employee company). Under PHRA, no cap—you receive full jury award.

This is a major advantage of Pennsylvania law over federal law.

Federal Discrimination Claims (Title VII, ADA, ADEA)

Back pay and front pay (no cap)

Compensatory damages (Title VII, ADA—not ADEA):

  • Emotional distress, pain and suffering
  • Capped based on employer size:
    • 15-100 employees: $50,000
    • 101-200 employees: $100,000
    • 201-500 employees: $200,000
    • 500+ employees: $300,000

Punitive damages (Title VII, ADA—not ADEA):

  • Same caps as compensatory (combined cap)

ADEA (age) claims:

  • Back pay and front pay
  • No compensatory or punitive damages
  • Liquidated damages (doubling back pay) if willful

Reinstatement and attorney’s fees

Strategy: If you qualify under both PHRA and federal law, pursue PHRA claim to avoid federal damage caps.

Public Policy and Whistleblower Claims

Back pay and front pay

Compensatory damages: Emotional distress (no cap under Pennsylvania common law)

Punitive damages: If employer acted with malice or reckless disregard

Reinstatement

Attorney’s fees: Recoverable under whistleblower statute and in some public policy cases

Breach of Contract Claims

Lost wages through contract term

Contract damages as specified

Attorney’s fees (if contract provides)

Filing Deadlines (Statute of Limitations)

Critical—missing deadlines destroys claims:

Claim Type Deadline Where to File
PHRC complaint 300 days Pennsylvania Human Relations Commission
EEOC charge 300 days EEOC (dual-files with PHRC)
PHRC lawsuit 2 years After filing complaint, PA state court
Whistleblower (PA Dept L&I) 180 days PA Dept of Labor & Industry
Public policy wrongful termination 2 years Pennsylvania state court
Workers’ comp retaliation 3 years Pennsylvania state court
FMLA retaliation 2-3 years (3 if willful) DOL or federal/state court
Breach of written contract 4 years Pennsylvania state court

Note: Pennsylvania Whistleblower Law has 180-day deadline to file with Department of Labor & Industry—this is very short.

How to File Wrongful Termination Claim in Pennsylvania

Step 1: Determine Type of Claim

Ask:

  • Does my employer meet size thresholds? (4+ for PHRA, 15+ for Title VII/ADA, 20+ for ADEA)
  • Is this discrimination, retaliation, public policy, whistleblowing, or contract breach?
  • Which agency or court has jurisdiction?

Step 2: File with Pennsylvania Human Relations Commission (PHRC)

For discrimination/harassment under PHRA:

Harrisburg Office:

  • Phone: 717-787-4410
  • Address: 333 Market Street, 8th Floor, Harrisburg, PA 17101

Philadelphia Office:

  • Phone: 215-560-2496
  • Address: 110 N. 8th Street, Suite 501, Philadelphia, PA 19107

Pittsburgh Office:

  • Phone: 412-565-5395
  • Address: 301 5th Avenue, Suite 390, Pittsburgh, PA 15222

File within: 300 days of discriminatory act

Online filing: Check phrc.pa.gov

Process:

  1. File complaint with PHRC (or EEOC—work-sharing agreement cross-files)
  2. PHRC investigates
  3. PHRC issues determination
  4. If no resolution, file lawsuit in Pennsylvania state court within 2 years of filing complaint

Step 3: File with EEOC (For Federal Claims)

Philadelphia EEOC:

  • Phone: 1-800-669-4000 or 215-440-2600
  • Address: 21 S. 5th Street, Suite 400, Philadelphia, PA 19106

Pittsburgh EEOC:

  • Phone: 1-800-669-4000 or 412-644-3444
  • Address: 1000 Liberty Avenue, Suite 1112, Pittsburgh, PA 15222

File within: 300 days

Dual filing: Filing with EEOC automatically cross-files with PHRC under work-sharing agreement

Step 4: File with PA Department of Labor & Industry (Whistleblower)

For Pennsylvania Whistleblower Law claims:

File within: 180 days of retaliation (critical short deadline)

Bureau of Labor Law Compliance:

  • Phone: 717-787-4186
  • Address: 651 Boas Street, Room 1301, Harrisburg, PA 17121

Step 5: File Lawsuit (Public Policy, Contract)

For public policy or contract claims: File directly in Pennsylvania state court (Court of Common Pleas in county where you worked)

Deadline: Generally 2 years (public policy), 4 years (written contract)

Strongly recommend attorney: These claims are complex

Step 6: Consult Employment Attorney

Highly recommended for wrongful termination claims:

  • Evaluate strength of claim
  • Navigate PHRC/EEOC process
  • Draft and file lawsuit
  • Negotiate settlement
  • Litigate if necessary

Contingency fee: Many employment attorneys work on contingency (paid only if you win)

Pennsylvania attorney resources:

  • Pennsylvania Bar Association Lawyer Referral: 1-800-692-7375
  • Community Legal Services of Philadelphia: 215-981-3700 (low-income)
  • Neighborhood Legal Services (Pittsburgh): 412-255-6700 (low-income)

Resources for Pennsylvania Workers

State Agencies

Pennsylvania Human Relations Commission (PHRC):

  • Harrisburg: 717-787-4410
  • Philadelphia: 215-560-2496
  • Pittsburgh: 412-565-5395
  • Website: phrc.pa.gov

Pennsylvania Department of Labor & Industry:

  • Harrisburg: 717-787-5279
  • Philadelphia: 215-560-1858
  • Pittsburgh: 412-565-5300
  • Website: dli.pa.gov

Federal Agencies

EEOC – Philadelphia:

  • Phone: 1-800-669-4000 or 215-440-2600

EEOC – Pittsburgh:

  • Phone: 1-800-669-4000 or 412-644-3444

U.S. Department of Labor:

  • Philadelphia: 215-861-5800
  • Pittsburgh: 412-395-4996

Free Legal Help

Community Legal Services of Philadelphia:

Neighborhood Legal Services Association (Pittsburgh):

  • Phone: 412-255-6700 or 1-866-761-6572
  • Website: nlsa.us

Pennsylvania Legal Aid Network:

Related Topics

Get Help with Your Pennsylvania Wrongful Termination Claim

Think you’ve been wrongfully terminated in Pennsylvania? Get a free consultation from an employment law expert who understands Pennsylvania’s at-will employment doctrine and exceptions.

Pennsylvania’s at-will employment allows many “unfair” terminations, but provides important protections through the Pennsylvania Human Relations Act (4+ employees, no damage caps), public policy wrongful termination, and whistleblower law. Understanding which exceptions apply and filing deadlines (300 days for PHRC, 180 days for whistleblower) is critical to protecting your rights.

Disclaimer: The information provided on this page is for general informational purposes only and does not constitute legal advice. Pennsylvania employment laws are subject to change. For advice specific to your situation, please consult with a licensed employment attorney in Pennsylvania. Employment Law Aid is not a law firm and does not provide legal representation.