What Qualifies as Wrongful Termination in Alabama?

Alabama is an “at-will” employment state, meaning that, by default, an employer may terminate an employee at any time, with or without cause, and with or without notice. However, “at-will” does not mean “without limits.” Several important exceptions and legal protections prohibit employers from terminating employees in violation of established law or public policy. If a termination falls into one of these exceptions, it may qualify as wrongful termination.

This guide explains the legal framework of wrongful termination in Alabama, the various federal and state protections available, and provides practical examples and citations to help determine whether a firing may have been unlawful.

I. The At-Will Doctrine in Alabama

In Alabama, the at-will employment doctrine is the baseline rule. This means:

An employer can terminate an employee for a good reason, a bad reason, or no reason at all, so long as the reason is not illegal.

Similarly, an employee can leave a job at any time without legal consequences.

This doctrine gives broad discretion to employers, but it is subject to statutory and constitutional limitations, as well as certain judicially recognized exceptions. Termination becomes “wrongful” when it violates one of these exceptions.

II. Statutory and Legal Exceptions to At-Will Employment in Alabama

1. Discrimination Based on Protected Characteristics

Employees in Alabama are protected from discrimination in the workplace by federal laws enforced by the Equal Employment Opportunity Commission (EEOC). Employers may not terminate employees based on:

• Race
• Color
• Sex (including pregnancy, sexual orientation, and gender identity)
• Religion
• National origin
• Age (if 40 or older)
• Disability

Relevant Laws:

• Title VII of the Civil Rights Act of 1964
• Americans with Disabilities Act (ADA)
• Age Discrimination in Employment Act (ADEA)
• Pregnancy Discrimination Act
• Genetic Information Nondiscrimination Act (GINA)

If an employee is terminated, and the evidence suggests that a discriminatory motive played a role in the decision, the termination may be deemed unlawful.

Example:

An African American employee is terminated shortly after reporting racial slurs made by a supervisor. A younger white employee with less experience is promoted into their role. If a pattern of racial bias exists, this termination could support a wrongful termination claim under Title VII.

2. Retaliation for Protected Activities

Federal law prohibits employers from retaliating against employees who engage in protected activities, such as:

• Filing a complaint of discrimination or harassment
• Participating in an EEOC investigation or lawsuit
• Reporting unsafe work conditions (OSHA)
• Reporting fraud or illegal conduct (whistleblowing)
• Taking medical or family leave under FMLA
• Filing or threatening to file a workers’ compensation claim

Relevant Laws:

• Title VII Retaliation Provision
• FMLA (29 U.S.C. § 2601 et seq.)
• Sarbanes-Oxley Act (for publicly traded companies)
• Occupational Safety and Health Act (OSHA)
• Ala. Code § 25-5-11.1 (retaliation for workers’ compensation claims)

Example:

An employee reports sexual harassment to HR. A week later, she is placed on a performance improvement plan for the first time, and a month later she is fired. If her termination is linked to her complaint, this may constitute retaliatory discharge — a form of wrongful termination.

3. Breach of Contract

Alabama courts generally uphold the at-will doctrine, but they do recognize and enforce valid employment contracts. If an employee is terminated in violation of the terms of a contract, this may support a wrongful termination claim.

Types of contracts that may limit termination:

• Written employment contracts with fixed terms
• Union collective bargaining agreements (CBA)
• Employee handbooks or manuals (in limited circumstances)
• Implied contracts based on statements or long-standing practices

However, Alabama courts are cautious about enforcing handbooks as contracts unless they clearly indicate that they alter the at-will nature of employment.

Example:

An employee’s contract states she will only be fired for "cause" and outlines a progressive discipline policy. She is fired without warning or documentation. If the employer violated the contract’s terms, the employee may have a breach of contract claim — and the termination would be considered wrongful under contract law.

4. Violation of Public Policy

While Alabama does not have a general public policy exception as broadly recognized in some other states, narrow exceptions have been carved out, particularly where the employee is:

• Fired for refusing to engage in illegal acts
• Fired for exercising a statutory right (such as filing a workers’ compensation claim)

Courts may recognize a wrongful discharge claim in violation of public policy if the employee is punished for obeying the law, complying with public duties (e.g., jury service), or refusing to break the law.

Example:

An employee is ordered to falsify accounting records. She refuses and is fired. Even without a specific statute, a court might view the firing as wrongful because it punishes the employee for refusing to commit an illegal act — a narrow exception to the at-will doctrine.

5. Family and Medical Leave Act (FMLA) Violations

Under the FMLA, eligible employees are entitled to up to 12 weeks of unpaid leave for certain family and medical reasons. An employer may not:

• Interfere with an employee’s right to take leave
• Terminate an employee for taking or requesting leave

Eligibility Requirements:

• Employer has 50+ employees within 75 miles
• Employee has worked at least 12 months
• Employee has worked at least 1,250 hours in the past year

Example:

An employee undergoes surgery and takes FMLA leave with proper certification. Upon returning, they are told their job is no longer available and they are terminated. This could constitute wrongful termination under FMLA and give rise to both interference and retaliation claims.

6. Retaliation for Filing a Workers’ Compensation Claim

Alabama law explicitly prohibits terminating an employee in retaliation for filing or pursuing a workers' compensation claim.

Relevant Statute:

• Ala. Code § 25-5-11.1

This statute provides a cause of action for employees who are wrongfully discharged because they sought medical treatment or benefits after being injured on the job.

Example:

An employee injures his back while lifting heavy equipment at work. He files a workers' comp claim. A week later, his supervisor fires him, citing "restructuring." If there is evidence the termination was motivated by the claim, the firing may be wrongful under Alabama law.

III. Additional Situations That May Give Rise to Wrongful Termination Claims

Whistleblower Protections

Although Alabama lacks a broad private-sector whistleblower statute, certain federal laws protect employees who report illegal or unethical conduct (e.g., fraud against the government, safety violations).

• Sarbanes-Oxley Act (financial sector)
• Dodd-Frank Act (securities fraud)
• False Claims Act (healthcare fraud, government contracts)

Jury Duty or Voting Leave

Employees cannot be terminated for serving on a jury or taking time off to vote (under certain circumstances). Retaliation in such cases may violate public policy or specific statutory provisions.

Military Service Protections

Employees called to active duty or training are protected under USERRA (Uniformed Services Employment and Reemployment Rights Act). Termination for fulfilling military obligations may constitute wrongful termination.

IV. Legal Remedies for Wrongful Termination

If an employee believes they were wrongfully terminated, potential remedies may include:

• Back pay (lost wages and benefits)
• Front pay (future lost wages)
• Reinstatement (rare but possible)
• Compensatory damages (for emotional distress)
• Punitive damages (in cases of malicious or egregious conduct)
• Attorneys’ fees and costs
• Injunctive relief (in some discrimination cases)

In cases involving federal claims (e.g., Title VII, FMLA, ADA), employees must usually file a charge with the EEOC before suing. Alabama law imposes additional deadlines and procedural requirements.

V. Steps an Employee Should Take if Wrongfully Terminated

1. Document everything: Keep emails, write down what was said, and note dates and witnesses.
2. Request a reason for the termination in writing (if possible).
3. File a charge with the EEOC (within 180 days in Alabama).
4. Consult an employment attorney to evaluate the claim and preserve your rights.
5. Meet applicable deadlines: Statutes of limitation for wrongful termination claims vary depending on the basis (e.g., Title VII = 90 days to file after right-to-sue letter).

VI. Conclusion

While Alabama’s at-will employment doctrine gives employers broad authority to terminate employees, that authority is not absolute. Wrongful termination claims arise when an employee is fired in violation of anti-discrimination laws, retaliation protections, contractual agreements, statutory rights, or public policy.



If you're an employee who suspects your firing was illegal — or an employer unsure of your obligations — a thorough review of the facts, documents, and timing of the termination is essential. Each case is highly fact-specific and often turns on the presence of retaliatory motive, discriminatory intent, or evidence of pretext.