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Arizona Wrongful Termination Laws: Know When Firing Is Illegal

Quick Answer: Arizona is an at-will employment state but the Employment Protection Act (A.R.S. § 23-1501) provides significant protections. You cannot be fired for discrimination, whistleblowing, refusing to violate law, exercising statutory rights, or in violation of implied contract. File discrimination claims with ACRD within 180 days.

Arizona provides better wrongful termination protections than many at-will states.

Arizona At-Will Employment

Default Rule

At-will means:

  • Either party can end employment
  • For any reason or no reason
  • With or without notice
  • UNLESS exception applies

Employment Protection Act

A.R.S. § 23-1501 creates:

  • Written at-will presumption
  • But allows important exceptions
  • Codifies when termination is illegal

Exceptions to At-Will

Implied Contract Exception

Protected when:

  • Employer made promises
  • Employee handbook created expectations
  • Oral assurances given
  • Course of dealing established

Public Policy Exception

Cannot fire for:

  • Refusing to violate law
  • Reporting illegal activity
  • Exercising statutory rights
  • Performing public duty

Good Faith and Fair Dealing

Arizona recognizes:

  • Implied covenant in some cases
  • Cannot terminate to deny earned benefits
  • Limited application

Discrimination

ACRA prohibits termination based on:

  • Race, color, religion
  • Sex, national origin
  • Age (40+)
  • Disability
  • Genetic information

Employment Protection Act Details

A.R.S. § 23-1501

Key provisions:

  • Presumption of at-will is rebuttable
  • Written personnel policy may modify
  • Public policy exceptions codified
  • Whistleblower protections

What Overcomes At-Will

May establish exception:

  • Written contract
  • Written personnel policy
  • Statement by employer
  • Public policy violation

Whistleblower Protections

Arizona Whistleblower Law

Protected activities:

  • Reporting violations of law
  • Refusing to violate law
  • Public policy disclosures

Coverage

Protects employees who:

  • Report to government agency
  • Refuse illegal conduct
  • Exercise statutory rights

Filing Complaints

ACRD (Discrimination)

Arizona Attorney General:

  • Civil Rights Division
  • Phone: 602-542-5263
  • Deadline: 180 days
  • Workshares with EEOC

EEOC (Federal)

For federal claims:

  • Phone: 1-800-669-4000
  • Phoenix: 602-640-5000
  • 300-day deadline with worksharing

Court Action

May file lawsuit for:

  • Breach of implied contract
  • Public policy violations
  • Some claims require direct suit

Proving Wrongful Termination

Elements

Generally must show:

  • Employment relationship
  • Termination occurred
  • Protected reason for firing
  • Damages resulted

Documentation

Gather:

  • Employee handbook
  • Written policies
  • Communications
  • Performance reviews
  • Timeline of events

Common Scenarios

Scenario 1: Fired After Reporting Safety Violation

Situation: Terminated after reporting OSHA violation.

Analysis: Protected whistleblower activity. May have EPA claim and federal OSHA retaliation.

Scenario 2: Handbook Promises

Situation: Handbook says termination only for cause, but fired without cause.

Analysis: May have implied contract claim if handbook language created expectation.

Scenario 3: Refused Illegal Act

Situation: Fired for refusing to falsify records.

Analysis: Protected under public policy exception. Cannot require illegal conduct.

Scenario 4: Discrimination

Situation: Fired based on age, race, or sex.

Analysis: File with ACRD within 180 days. Protected under ACRA.

Scenario 5: Workers’ Comp Retaliation

Situation: Terminated after filing workers’ compensation claim.

Analysis: Protected. Cannot retaliate for workers’ comp claims.

Remedies Available

Damages

May recover:

  • Lost wages (back pay)
  • Lost benefits
  • Front pay
  • Compensatory damages
  • Possibly punitive damages

Other Relief

May obtain:

  • Reinstatement
  • Attorney’s fees
  • Injunctive relief

Statute of Limitations

Time Limits

Varies by claim:

  • ACRA: 180 days (ACRD)
  • Breach of contract: 6 years (written), 3 years (oral)
  • Tort claims: 2 years
  • Consult attorney for specific claim

Frequently Asked Questions

Is Arizona an at-will state?

Yes, but the Employment Protection Act provides significant exceptions.

Can I be fired without reason?

Generally yes, unless an exception applies (discrimination, whistleblowing, etc.).

What is the Employment Protection Act?

Arizona law codifying at-will presumption while recognizing important exceptions.

How long do I have to file?

180 days for ACRD discrimination claims. Other claims vary.

Can handbook create a contract?

Possibly. Written personnel policies may modify at-will status.

Related Topics

Take Action

If you believe you were wrongfully terminated:

  1. Document the circumstances
  2. Review employee handbook
  3. Identify protected activity
  4. Note applicable deadlines
  5. Consult employment attorney

Legal Disclaimer

This article provides general information about wrongful termination in Arizona and is not legal advice. For specific advice, consult a licensed Arizona employment attorney.

For official information: