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Texas Business Law · Glossary

Wrongful Termination

A narrow Texas concept, termination of employment in violation of a specific common-law exception or statutory protection limiting the at-will rule. Texas does not recognize a generalized cause of action for wrongful discharge based on broad public-policy grounds.

"Wrongful termination" in Texas is a narrow concept, termination of employment in violation of a specific common-law exception or statutory protection limiting the at-will rule. Texas does not recognize a generalized cause of action for "wrongful discharge" based on broad public-policy grounds; the available causes of action are specifically defined and require careful claim selection.

Recognized causes of action

Sabine Pilot claim: termination because the employee refused to perform an act for which the employee would be personally criminally liable. Narrowly construed; the act must be criminal, not merely unethical or unwise.

Workers' compensation retaliation: termination for filing a workers' comp claim or reporting a work-related injury. Tex. Lab. Code § 451.001.

Anti-discrimination claims: termination based on a protected characteristic under federal or Texas anti-discrimination statutes. See Workplace Discrimination.

FMLA retaliation: termination for taking FMLA-protected leave (employers with 50+ employees).

Whistleblower claims: federal SOX, OSHA, and other statute-specific protections. The Texas Whistleblower Act covers only public employees, not private-sector workers.

Damages

Vary by claim. Common categories: lost wages and benefits (back pay, front pay), emotional distress damages, punitive damages where authorized, attorney's fees under fee-shifting statutes.

Practical context

Texas's narrow approach to wrongful termination contrasts sharply with states recognizing a general public-policy exception. Many Texas employees who feel wrongly terminated have no legal cause of action because their grievance, perceived unfairness, bad management, personality conflicts, does not fit within a recognized statutory or common-law exception. Effective claim evaluation requires identifying which specific statutory protection or common-law exception applies, and whether the employee has the procedural prerequisites (EEOC charge, TWC charge, internal complaint) needed to proceed.

Companion article: Before Firing an Employee in Texas

Related Terms
At-Will Employment· Workplace Discrimination· Severance Agreement· Employment Agreement
Referenced by
Age Discrimination in Employment Act (ADEA)· COBRA Continuation Coverage· Employment Practices Liability Insurance (EPLI)· Family and Medical Leave Act (FMLA)· Sabine Pilot Doctrine· Unemployment Compensation· Workers' Compensation
Last updated: August 14, 2026