Human Resource Blog

Wrongful Termination?

An 8-year employee of a credit union (with a record of above average reviews) was terminated in December because of a $40 transaction that was posted in July that she could not recall the details of. The transaction was posted and then reversed.  After the transaction was reversed, a $50 withdrawal was made by the customer. The customer who brought this to the attention of management is 86 and has Alzheimers. The customer objected much later when another teller would not let him withdrawal more money than was in the account, creating a negative balance. He argued that the employee had permitted this in July. The teller was terminated because “it appeared she had manipulated the computer system in order to give the member what he wanted.”  The termination papers said…”it appeared…” Does she have a case for wrongful termination?

Only an attorney who is familiar with all the details of this case can answer that question. However, here are some issues to consider:

Most states in the U.S. follow the “employment at will” doctrine. This legal concept states that (in the absence of a written contract) an employee can be fired at any time, for any reason or for no reason. It also states that an employee can quit at any time, for any reason or for no reason.  If this event occurred in an employment at will state, the worker probably does not have a case for wrongful termination.

In Alabama, Alaska, Arizona, California, Delaware, Idaho, Massachusetts, Montana, Nevada, Utah and Wyoming, the “employment at will” doctrine does not apply. Instead, those states follow the “covenant of good faith and fair dealing” which says that an employer will not fire someone without a valid reason or due process. If this event occurred in one of those states, the employee might have a case.

If it’s any consolation, in many states, an employee who is fired for a single mistake (rather than a pattern of repeated errors or gross misconduct) is eligible for unemployment benefits.

The credit union’s point of view is that the employee intentionally falsified financial records to benefit a customer. The fact that it may have been done out of compassion, rather than for personal gain, isn’t relevant. This view is supported by the customer’s testimony. The employee’s point of view is that she made a simple accounting mistake. Unfortunately, there is no supporting testimony for this view.

In this situation, some companies would have chosen to issue a written warning to the employee. However, it is legal for the company to fire her, instead, in most cases. The termination is worded “it appears” that the employee falsified documents, because the credit union doesn’t have enough legal evidence to prosecute the employee. However, they do have enough evidence to terminate her.

One exception to employment at will would be if the company was discriminating against the employee based on race, color, religion or national origin. Suppose Susan, a Caucasian employee, had made a similar mistake, and not been terminated for it. Andrea, an African American employee, makes a similar mistake, and is terminated (or vice versa). This would probably constitute illegal discrimination based on race. Discrimination may also be a factor if the employee is disabled, or over 40.

If the employee believes that discrimination was a factor, she should consult the EEOC. Any complaint with the EEOC must be made before a lawsuit is filed.

Use caution when consulting an attorney about a wrongful termination case. Unfortunately, some attorneys will accept even very weak cases, because they stand to make thousands of dollars in legal fees, even if they lose. In general, an attorney who accepts a case on contingency is confident of winning the case.

This answer is for informational purposes only and is not meant as legal advice.