While multimillion awards are possible, it is crucial to keep in mind that federal laws limit the amount of punitive and compensatory damages awarded in cases involving wrongful termination. They cannot exceed $50,000 – $300,000, depending on the number of employees working for the employer's business.
Your termination could be wrongful if your employer fired you: Due to discrimination. In violation of a federal or state labor law. Because you reported and refused to participate in harassment.
In general, you must file a wrongful termination claim within one year after the termination of your employment. You may sue your employer for wrongful termination if: Your termination breaches an employment contract. You were terminated for discriminatory reasons, and you received a “right to sue” letter.
In law, wrongful dismissal, also called wrongful termination or wrongful discharge, is a situation in which an employee's contract of employment has been terminated by the employer, where the termination breaches one or more terms of the contract of employment, or a statute provision or rule in employment law.
As a simple example, if your compensation was $100,000 year (salary plus benefits), and a jury decides after a trial – two years later – that your termination was discriminatory, you could be entitled to $200,000 in lost past compensation.
It is unlawful to terminate an employee because of his or her race, gender, age, disabilities, national origin, color of their skin, or pregnancy. It is also unlawful to terminate an employee because they complained about such discrimination.
While a termination letter is considered good practice, there are no federal or Arizona state laws that require it. In fact, because Arizona is an “at-will” employment state, an employer is under no obligation to provide any reasoning for terminating an employee.
If you believe you were wrongfully terminated, you may have the right to take legal action against your employer for lost wages and other damages. In most cases of wrongful termination in Arizona, you must file a claim within one year after the termination of your employment.