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Wrongful Termination in New York: Your Rights as an Employee

Were you fired illegally in New York? You may have a wrongful termination claim even though New York is an at-will employment state. New York offers stronger worker protections than many states, and several laws prevent employers from firing you for illegal reasons.

This guide explains your rights under New York law, when termination crosses the line into illegal territory, and what steps you can take to protect yourself.

What Is Wrongful Termination in New York?

Wrongful termination occurs when an employer fires you for an illegal reason that violates state or federal law. While New York follows at-will employment, employers cannot terminate you based on discrimination, retaliation, or violations of public policy.

In New York, wrongful termination can include:

  • Firing based on protected characteristics like race, gender, or disability
  • Retaliation for complaining about workplace violations
  • Termination that violates an employment contract
  • Firing that contradicts established company policy
  • Dismissal for exercising legal rights

New York provides broader protections than federal law in many cases. The state recognizes more protected classes and gives workers longer deadlines to file claims.

Understanding At-Will Employment in New York

New York follows the at-will employment doctrine. This means employers can generally fire workers at any time, for any reason, or no reason at all. Employees can also quit without notice.

However, at-will employment is not absolute. New York law creates significant exceptions that protect workers from illegal termination. Courts in New York recognize these exceptions more readily than courts in some other states.

At-will does not mean employers can:

  • Discriminate based on protected characteristics
  • Retaliate against workers who assert their rights
  • Fire employees in violation of written contracts
  • Terminate workers in ways that violate public policy
  • Ignore their own established termination procedures

If your employer violated one of these exceptions, your termination may be wrongful even in an at-will state.

Major Exceptions to At-Will Employment in New York

New York State Human Rights Law (NYSHRL)

The NYSHRL provides stronger protections than federal law. It covers more protected classes and applies to smaller employers.

Protected characteristics under NYSHRL include:

  • Race, color, and national origin
  • Sex, gender identity, and sexual orientation
  • Pregnancy and reproductive health decisions
  • Religion and religious observance
  • Age (18 and over)
  • Disability and perceived disability
  • Marital status and familial status
  • Military status and veteran status
  • Domestic violence victim status
  • Arrest and conviction records (with limitations)
  • Genetic predisposition and carrier status

The NYSHRL applies to employers with four or more employees. Federal law typically requires 15 or more employees. This means more New York workers have discrimination protection.

Example: Maria worked for a small real estate office with six employees. When she disclosed her pregnancy, her employer reduced her hours significantly and eventually fired her. Because New York law covers employers with four or more employees, Maria could file a pregnancy discrimination claim even though the company was too small for federal protection.

New York Labor Law Whistleblower Protection

New York Labor Law Section 740 protects employees who report illegal activities or safety violations. Employers cannot retaliate against workers who blow the whistle on wrongdoing.

You are protected when you report:

  • Violations of laws, rules, or regulations
  • Health and safety dangers to the public
  • Fraud or misconduct that creates substantial risk
  • Improper governmental action

You must first report the violation to a supervisor or give the employer a chance to correct the issue. Then you can report to a government agency if needed.

Example: David, a construction site supervisor, reported safety violations to OSHA after his employer ignored his internal complaints about missing fall protection equipment. When the company fired him two weeks later, he had a strong retaliation claim under Labor Law Section 740.

Public Policy Violations

New York courts recognize wrongful termination claims when firing violates clear public policy. This exception protects employees who exercise legal rights or refuse to break the law.

Common public policy violations include:

  • Firing for serving on jury duty
  • Termination for filing workers’ compensation claims
  • Dismissal for refusing to commit perjury or fraud
  • Retaliation for reporting workplace safety violations
  • Firing for taking legally protected leave

Courts examine whether the termination undermines important state interests or public welfare.

Implied Contract Exception

New York courts recognize implied employment contracts more readily than some other states. An implied contract can arise from:

  • Employee handbooks with specific termination procedures
  • Verbal promises of continued employment
  • Long-term employment with positive reviews
  • Employer policies suggesting progressive discipline

If your employer created an implied contract through its policies or promises, firing you without following those procedures may be wrongful.

Example: James worked for a company for 12 years with consistently excellent reviews. The employee handbook stated termination would occur only “for cause” and outlined a progressive discipline process. When the company fired James suddenly without following any of these procedures, he successfully argued an implied contract had been breached.

Breach of Covenant of Good Faith and Fair Dealing

New York recognizes a limited duty of good faith and fair dealing in employment relationships. While not as broad as in some states, courts may find wrongful termination when an employer acts in bad faith.

This exception typically applies when:

  • An employer fires you to avoid paying earned commissions
  • Termination occurs to prevent pension vesting
  • The employer manipulates performance reviews to justify illegal firing

The covenant of good faith prevents employers from using termination to cheat workers out of earned benefits.

Common Wrongful Termination Scenarios in New York

Discrimination-Based Termination

Your employer cannot fire you because of protected characteristics. Discrimination can be direct or based on patterns of treatment.

Red flags include:

  • Comments about your age, race, gender, or other protected traits
  • Replacement by someone outside your protected class
  • Sudden negative reviews after disclosing a protected characteristic
  • Different treatment compared to similar employees

Retaliation for Protected Activity

Employers cannot punish you for asserting your workplace rights.

Protected activities include:

  • Filing discrimination or harassment complaints
  • Reporting wage violations or unpaid overtime
  • Requesting reasonable disability accommodations
  • Taking family or medical leave
  • Participating in workplace investigations
  • Complaining about safety violations

Retaliation often follows soon after protected activity. Sudden termination, demotion, or negative performance reviews after you complain suggest retaliation.

Violation of Employment Contracts

If you have a written employment contract, your employer must follow its terms. Contracts may specify:

  • Required notice periods before termination
  • Grounds for termination (“for cause” provisions)
  • Severance payment obligations
  • Dispute resolution procedures

Firing you in violation of these contract terms creates a breach of contract claim.

Violating Company Policy

When employers establish clear termination procedures in handbooks or policies, they may be required to follow them. Sudden termination without progressive discipline or investigation may violate implied contracts.

Damages Available in New York Wrongful Termination Cases

If you prove wrongful termination, you may recover several types of damages:

Economic Damages:

  • Back pay (lost wages from termination to judgment)
  • Front pay (future lost earnings if reinstatement is impractical)
  • Lost benefits (health insurance, retirement contributions, stock options)
  • Value of lost career advancement opportunities

Non-Economic Damages:

  • Emotional distress and mental anguish
  • Damage to professional reputation
  • Pain and suffering related to the termination

Punitive Damages:

  • Available in cases involving intentional discrimination or egregious conduct
  • Designed to punish the employer and deter future violations

Other Relief:

  • Reinstatement to your former position
  • Attorney fees and litigation costs
  • Injunctive relief requiring policy changes

The specific damages depend on the type of claim and the severity of the violation.

Statute of Limitations: Critical Deadlines for New York Claims

Act quickly. Different claims have different filing deadlines. Missing a deadline can permanently bar your case.

Claim Type Filing Deadline Where to File
NYSHRL Discrimination 3 years NY Division of Human Rights (NYSDHR) or court
Federal Title VII 300 days EEOC (preserves NYSHRL claims)
Labor Law § 740 (Whistleblower) 2 years Court (no administrative filing required)
Breach of Contract 6 years Court
Common Law Wrongful Discharge 3 years Court

Important notes:

  • NYSHRL’s 3-year deadline is significantly longer than federal law’s 300 days
  • Filing with EEOC within 300 days preserves both federal and state claims
  • Contract claims have the longest deadline at 6 years
  • Some deadlines are “statutes of limitations” (hard deadlines), others are administrative filing deadlines

The longer New York deadlines give workers more time to assess their claims and gather evidence. However, evidence becomes harder to obtain as time passes, so acting quickly strengthens your case.

What to Do If You Were Wrongfully Terminated

Take these steps to protect your rights:

1. Document Everything

Gather and preserve evidence immediately:

  • Written termination notice and stated reasons
  • Performance reviews and disciplinary records
  • Emails, texts, and communications with supervisors
  • Employee handbook and company policies
  • Witness contact information
  • Medical records (for disability or FMLA claims)
  • Timeline of events leading to termination

2. Request Your Personnel File

New York Labor Law Section 198-c gives you the right to request your personnel file. Your employer must provide it within a reasonable time. This file contains performance reviews, warnings, and documentation the employer may use to justify termination.

3. File for Unemployment Benefits

Apply for unemployment benefits immediately. Your employer may contest the claim, but you should apply regardless. The unemployment hearing can also preserve testimony about the termination circumstances.

Applying for unemployment does not prevent you from filing a wrongful termination claim.

4. Understand Your Filing Options

You can pursue wrongful termination claims through different channels:

New York State Division of Human Rights (NYSDHR):

  • Handles discrimination and retaliation claims under NYSHRL
  • Free to file, investigates complaints
  • 3-year deadline from discriminatory act
  • Can lead to mediation, hearing, or court case

Equal Employment Opportunity Commission (EEOC):

  • Handles federal discrimination claims
  • 300-day deadline preserves state and federal rights
  • Issues “right to sue” letter for court filing

Civil Court:

  • Direct filing for contract claims, Labor Law § 740, or after receiving right to sue letter
  • Allows broader discovery and jury trial
  • May result in higher damages awards

Many workers file with both NYSDHR and EEOC to preserve all options.

5. Consult an Employment Attorney

Wrongful termination cases involve complex legal standards and tight deadlines. An experienced employment attorney can:

  • Evaluate the strength of your claims
  • Identify all available legal theories
  • Gather evidence and witness testimony
  • Navigate administrative filing requirements
  • Negotiate settlements or litigate in court

Many employment attorneys offer free consultations and work on contingency (no fee unless you win).

Frequently Asked Questions

Can I be fired without warning in New York?

Generally yes, due to at-will employment. However, if your employer’s handbook promises progressive discipline or you have an employment contract requiring warnings, sudden termination without following those procedures may be wrongful. Additionally, if the real reason for firing is illegal (discrimination, retaliation), lack of warning doesn’t make it legal.

How do I prove my termination was discriminatory?

You can prove discrimination through direct evidence (discriminatory comments, emails) or circumstantial evidence (timing, patterns, replacement by someone outside your protected class). You don’t need a “smoking gun.” Courts examine the totality of circumstances, including whether the employer’s stated reason is pretextual.

Can I sue for wrongful termination if I was laid off?

Possibly. If the layoff was actually a pretext for illegal discrimination or retaliation, you may have a claim. For example, if your employer selected you for layoff because of your age while keeping younger workers with less experience, that could be age discrimination despite being called a “layoff.”

What if I signed a severance agreement?

Severance agreements often include release clauses waiving your right to sue. However, these releases have limits. You cannot waive claims that arose after you signed, and some statutory rights cannot be waived. Additionally, releases signed under duress or without proper consideration may be invalid. Have an attorney review any severance agreement before signing.

Does New York City have additional protections?

Yes. The New York City Human Rights Law (NYCHRL) provides even broader protections than state law for workers in the five boroughs. It covers more situations, has lower proof standards, and allows higher damages. If you work in NYC, you may have additional claims under local law.

Related Topics

Legal Disclaimer

This article provides general information about wrongful termination law in New York and should not be construed as legal advice. Employment law is complex and fact-specific. The information presented here may not apply to your specific situation. Deadlines, laws, and regulations change over time.

If you believe you were wrongfully terminated, consult with a qualified New York employment attorney who can evaluate your individual circumstances and provide personalized legal advice. Nothing in this article creates an attorney-client relationship.

Sources:

  • New York State Human Rights Law, Executive Law Article 15
  • New York Labor Law Section 740 (Whistleblower Protection)
  • New York Labor Law Section 198-c (Personnel File Access)
  • New York State Division of Human Rights, www.dhr.ny.gov
  • New York State Legislature, www.nysenate.gov/legislation

If you believe your termination violated New York law, don’t wait. Evidence disappears, witnesses forget, and deadlines pass. Contact an experienced employment attorney today to discuss your rights and options. Many offer free consultations to evaluate your case.