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Home›Law›Wrongful Termination in Texas: What Counts and What Doesn’t

Wrongful Termination in Texas: What Counts and What Doesn’t

By Paul Watson
October 24, 2025
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Wrongful Termination in Texas

Losing a job is never easy—especially if you feel you were fired unfairly. Many employees assume that any firing that feels unjust is automatically “wrongful termination,” but the legal definition is much narrower than most people think, particularly in a state like Texas.

Texas is an at-will employment state, meaning employers can terminate employees at any time, for almost any reason—or no reason at all. However, there are important exceptions to this rule. If your termination violated federal or state laws, breached an employment contract, or was in retaliation for protected activity, it could be considered wrongful termination.

In this post, we’ll break down what legally qualifies as wrongful termination in Texas—and what doesn’t—so you can better understand your rights and whether you may have a claim.

What Is At-Will Employment?

In Texas, the default employment relationship is “at-will.” This means:

  • You can quit your job at any time, for any reason.
  • Your employer can fire you at any time, for almost any reason.

But there’s a big caveat: the reason for firing cannot be illegal.

In other words, just because your employer can fire you without cause doesn’t mean they can fire you for a discriminatory or retaliatory reason. That’s where wrongful termination laws come into play.

What Counts as Wrongful Termination in Texas

Here are the primary scenarios where a firing may be considered wrongful under Texas or federal law:

1. Discrimination

It is illegal to terminate someone based on protected characteristics under federal and Texas law. These include:

  • Race or ethnicity
  • National origin
  • Gender or sex (including pregnancy and sexual orientation)
  • Age (over 40)
  • Disability
  • Religion

If your termination was influenced by any of these factors, it may constitute unlawful discrimination, even if your employer gives another reason for the firing.

2. Retaliation

Employers are prohibited from retaliating against employees who engage in legally protected activities. You may have a claim for wrongful termination if you were fired for:

  • Reporting workplace harassment or discrimination
  • Filing a workers’ compensation claim
  • Taking protected medical leave under the FMLA
  • Reporting illegal activity (whistleblowing)
  • Participating in a workplace investigation
  • Requesting a reasonable accommodation for a disability

Retaliation claims are common and often provable if there is a close link between the protected action and the termination.

3. Breach of Contract

If you have an employment contract (written or sometimes even implied), and you were fired in violation of the terms, it could be a breach of contract. Examples include:

  • Being terminated without the cause outlined in your agreement
  • Not receiving severance, benefits, or notice as agreed upon
  • Termination that violates an employee handbook or internal policy

While most employees in Texas are at-will, those with contracts—including some executives, sales professionals, or government workers—may have additional protections.

4. Violation of Public Policy

Texas recognizes a limited “public policy” exception to at-will employment. It’s illegal to fire someone for reasons that violate public interest, such as:

  • Refusing to commit an illegal act
  • Reporting illegal activity by the employer (i.e., whistleblowing)
  • Exercising a legal right, such as voting or serving on a jury

Although this is a narrower path to claim wrongful termination, it is legally recognized in certain cases.

What Doesn’t Count as Wrongful Termination

Not every unfair or frustrating firing is unlawful. You likely don’t have a wrongful termination claim if you were fired for:

  • Poor performance (even if you disagree)
  • Being late or absent (unless due to protected leave)
  • A personality conflict with your boss
  • Company downsizing or restructuring
  • A vague reason like “not the right fit”
  • Social media activity, unless protected by labor laws

Texas employers don’t have to be fair—they just have to avoid violating the law.

That said, employers often disguise illegal terminations behind vague excuses. If something doesn’t sit right with how you were let go, it’s worth speaking with an employment attorney.

Steps to Take If You Suspect Wrongful Termination

If you believe your firing was unlawful, act quickly:

  1. Document everything
    Save emails, performance reviews, texts, and write down details of conversations and incidents.
  2. Request a reason for your termination
    Employers aren’t required to provide one, but asking can be helpful for building your case.
  3. File a charge with the EEOC or Texas Workforce Commission
    For discrimination or retaliation cases, you must file a complaint with one of these agencies before pursuing a lawsuit. There are strict deadlines (as short as 180 days), so don’t delay.
  4. Consult a wrongful termination lawyer
    An attorney can help you understand whether you have a valid claim and what compensation you may be entitled to, such as lost wages, emotional distress, or punitive damages.

Final Thoughts

Wrongful termination cases in Texas are complex—and not every unfair firing is illegal. But if you were let go because of discrimination, retaliation, or a violation of your contract or legal rights, you may have a case worth pursuing.

Understanding the difference between what feels unfair and what is unlawful is the first step. The second? Getting the legal support you need to protect your rights and hold your employer accountable. We recommend wrongful termination lawyers Dallas.

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