Can I Sue My Employer for Wrongful Termination in Arizona?
Yes, Arizona employees can bring claims for wrongful termination under state and Federal law. However, not all terminations—even terminations that are unfair and/or based on incorrect/false reasons—give rise to a wrongful termination claim. Only terminations that violate an applicable law give rise to a wrongful termination claim.
To have a wrongful termination claim, your termination must:
Be discriminatory;
Be retaliatory;
Violate applicable law; or
Breach an employment contract.
Wrongful Termination Claim Based on Discrimination:
Arizona and Federal laws prohibit employers from terminating employees because of “protected characteristic(s).” Protected characteristics include race, color, national origin, sex/gender (including gender identity and sexual orientation), age, disability, religion, and/or genetic information.
Applicable state law includes:
Arizona Civil Rights Act (ACRA):
Applies to employers with 15+ employees.
Prohibits discrimination based on all protected-characteristic categories.
Applicable Federal law includes:
Americans with Disabilities Act (ADA):
Applies to employers with 15+ employees.
Prohibits discrimination based on disability, including the failure to provide a reasonable accommodation that would allow the employee to complete the essential functions of their position.
Age Discrimination in Employment Act (ADEA):
Applies to employers with 20+ employees.
Prohibits discrimination based on age.
Genetic Information Nondiscrimination Act of 2008 (GINA):
Applies to employers with 15+ employees.
Prohibits discrimination based on genetic information, including family medical history and genetic test results.
Title VII of the Civil Rights Act of 1964 (“Title VII”):
Applies to employers with 15+ employees.
Prohibits all other types of discrimination.
Wrongful Termination Claim Based on Retaliation:
Arizona and Federal laws prohibit employers from terminating employees because they engaged in “protected activity.” Protected activity typically includes submitting formal (external) or informal (internal) complaints of unlawful activity and/or participating in investigations into such complaints. Retaliation laws can also protect the exercise of certain legal rights.
A non-exhaustive list of applicable state law includes:
Arizona Civil Rights Act (ACRA):
Applies to employers with 15+ employees.
Prohibits retaliation against employees who report violations of the ACRA or participate in investigations relating to ACRA claims.
Arizona’s Fair Wages and Healthy Families Act (FWHFA):
Applies to all employers
Prohibits employers from terminating employees for exercising their right to take earned paid sick leave or reporting violations of the FWHFA.
Arizona Occupational Safety and Health Act (AOSHA):
Applies to all employers.
Prohibits employes from terminating employees who report safety and/or health concerns that violate AOSHA or participate in AOSHA inspections.
Arizona Employment Protection Act (AEPA):
Applies to all employers.
Prohibits employers from retaliating against employees who:
Refuse to engage in conduct that would violate the Arizona Constitution or an Arizona statute;
Disclose a reasonable belief that the employer or an employee of the employer has violated, is violating, or will violate the Arizona Constitution or an Arizona statute;
Exercise their workers’ compensation rights;
Serve on a jury;
Exercise voting rights;
Exercise crime-victim rights to leave work;
Exercise free choice with respect to membership in a labor organization;
Serve in the national guard or armed forces;
Exercise the right to be free from the extortion of gratuities or fees as a condition of employment; or
Exercise the right to be free from coercion to purchase goods or supplies from any particular person/entity as a condition of employment.
A non-exhaustive list of applicable Federal law includes:
Americans with Disabilities Act (ADA):
Applies to employers with 15+ employees.
Prohibits retaliation against employees who report violations of the ADA or participate in investigations related to ADA claims.
Age Discrimination in Employment Act (ADEA):
Applies to employers with 20+ employees.
Prohibits retaliation against employees who report violations of the ADEA or participate in investigations related to ADEA claims.
Title VII of the Civil Rights Act of 1964 (“Title VII”):
Applies to employers with 15+ employees.
Prohibits retaliation against employees who report violations of Title VII or participate in investigations related to ADEA claims.
Family and Medical Leave Act (FMLA):
Applies to employers with 50+ employees within a 75-mile radius.
Prohibits retaliation against employees who report violations of the FMLA, participate in investigations related to FMLA claims, or request protected leave under the FMLA.
Occupational Safety & Health Act (OSHA):
Applies to all employers.
Prohibits employers from retaliating against employees who report safety and/or health concerns that violate OSHA or participate in OSHA inspections.
Taxpayer First Act (TFA):
Applies to all employers.
Prohibits employers from retaliating against employees who report underpayment of taxes, potential violations of internal revenue laws, or potential violations of any federal law relating to tax fraud; or participate in investigations related to tax fraud.
Wrongful Termination in Violation of Other Laws:
Employers are generally prohibited from terminating employees in violation of any specific law(s) that otherwise protect employees’ continued employment in certain circumstances.
A non-exhaustive list of applicable state law includes:
Arizona Employment Protection Act (AEPA):
Applies to all employers.
Prohibits employers from terminating employees in violation of an Arizona statute. (However, if the applicable statute provides for a remedy, then that statute is the exclusive remedy, and the employee would not have a separate AEPA wrongful-termination claim.) Examples of state law that provide for an exclusive remedy include the ACRA and AOSHA.
A non-exhaustive list of applicable Federal law includes:
Family and Medical Leave Act (FMLA):
Applies to employers with 50+ employees within a 75-mile radius.
Prohibits employers from terminating employees who are entitled to protected leave from work relating to (i) their own or a qualifying family member’s serious medical condition; (ii) the adoption or birth of a child; or (iii) any covered contingency related to the employee’s or qualified family member’s active military duty
Wrongful Termination in Breach of Employment Contract:
By default, employees in Arizona are employed “at will,” meaning they can be terminated at any time for any lawful reason. (Here, “lawful reason” means any reason that does not violate a specific law. Lawful terminations can be unfair or based on incorrect/false reasons without necessarily being unlawful.) However, some employees are employed pursuant to an employment contract or agreement that either (i) guarantees them a specific term or length of employment (i.e., one year, two years, etc.) or (ii) sets forth specific conditions that must be met before the employer can terminate the employee (i.e., the employee can only be terminated “for cause”). Employees with employment contracts that protect their continued employment are not considered at-will employees.
If an employer breaches an applicable employment contract (i.e., by terminating an employee before their term of employment has concluded or without having met the contractual conditions that can trigger the employee’s termination), then the employee will have a wrongful termination claim based on breach of contract under the Arizona Employment Protection Act. Such employees are limited to contract remedies.
