Wrongful termination in Alabama

A practical guide for employees in 2025

Like most states in the USA, employment in Alabama is “at-will”, which means that in most cases, an employer can change an employee’s employment terms and conditions at any time, without notice or reason.

This simply means at-will employees can be fired or demoted at any time.

However, employees do have some protection at the workplace, as there are numerous exceptions to the employment at-will doctrine in Alabama.

This article will discuss these exceptions and offer advice on what to do if you feel you were wrongfully terminated in Alabama.

Exceptions to employment at-will in Alabama

Firstly, there are a few types of employees who are generally protected to some extent from the at-will doctrine:

public employees under civil service regulations
employees under a union collective bargaining agreement

If you fall into any of the above categories, make sure to check the terms of your employment if you feel adverse employment action was taken against you.

Secondly, beside the above groups, there are exceptions to the at-will rule that cover all employees. These exceptions are defined by federal, state and local laws. They declare a termination wrongful, when an employee is fired for an unlawful or impermissible reason.

The following list of exceptions to employment at-will protect existing employees, as well as job applicants.

Age discrimination

The Age Discrimination in Employment Act of 1967 (ADEA) protects employees and job applicants who are over 40 years old from being discriminated against at the workplace. Based on this act, an employer cannot discriminate against employees because of their age with regard to all employment, remunerations, terms or conditions.

Constructive discharge

Constructive discharge occurs when the work environment becomes so intolerable in violation of a law, that an employee feels forced to resign.

Such cases are hard to prove, as the victim has to show that as a result of illegal treatment and/or working conditions things got so hostile, that any reasonable person would quit.

Disability discrimination

The Americans wit Disabilities Act of 1990 (ADA) protects employees and job seekers from wrongful discrimination due to a mental or physical disability.

The law states that reasonable accommodation must be given to disables employees in an effort to help them carry out their work.

The Family and Medical Leave Act (FMLA) should be mentioned here as well, which regulates the amount of unpaid leave an employee must be given in serious medical or family events.

More on disability discrimination at the workplace >>

Breach of employment contract

While most employees in Alabama are at-will, many will have an employment contract. If the employer breaches the contract, the law is broken and a claim may be filed.

The employment contract may be written, oral or implied.

Gender discrimination

Title VII of the Civil Rights Act of 1964 (Title VII) prohibits the discrimination of employees and job applicants based on their gender, as well as sexual harassment.

More on gender discrimination at the workplace >>

Pregnancy discrimination

The Pregnancy Discrimination Act of 1978 (PDA) make the unfair treatment of pregnant women at the workplace illegal in the USA. If a pregnant woman cannot perform her duties, the ADA applies.

The FMLA also applies to pregnancy discrimination, since it grants a 12 week leave to new parents.

More on pregnancy discrimination at the workplace >>

Public policy violation

Public policy is the set of laws and moral principles that are present in our society.

Sometimes it is not in the interest of the employer to do everything according to normal public policy. Being retaliated against in violation of public policy happens when an employer makes adverse employment decisions based solely on the fact that an employee followed the law.

Alabama is one of few states that does NOT recognize the public policy exception to at-will employment.

More on retaliation in violation of public policy >>

Race, color, nationality, religion discrimination

Title VII of the Civil Rights Act of 1964 (Title VII) makes it illegal to discriminate against or harass employees or applicants based on the color of their skin, their race, their nationality or sincerely held religious beliefs.

More on race, color, nationality, religion discrimination >>

Retaliation

The law defines protected activities, for which an employee cannot be retaliated against.

Retaliation against an employee may come in many forms: termination, demotion or transferring to a less desirable position, denial of promotion, denial of job benefits, suspension, threats or abuse (verbal or physical), negative, false evaluations or reports or treating family members negatively.

Discrimination because of sexual orientation

Title VII of the Civil Rights act of 1964 (Title VII) protects employees from discrimination because of sexual orientation, gender expression or gender identity.

More on discrimination at the workplace against the LGBTQ community >>

Whistleblower retaliation

A whistleblower is an employee who exposes an employer for doing something in violation of something illegal.

Numerous laws protect whistleblowers from ill treatment at the workplace.

Owed wages

Terminating an employee in retaliation for complaining about missed wages, overtime or hour violations is illegal.

Filing a worker’s compensation claim

Alabama’s Worker’s Compensation Act forbids employers from firing workers because they filed a worker’s compensation claim due to an injury resulting from work.

Proving a wrongful termination claim in AL is the job of the employee. Sufficient evidence needs to be gathered to prove that the employer broke the law by firing (or not hiring) you.

Since there are many exceptions to the general “at-will” rule, an employee who was wrongfully terminated may be able to bring a claim under not just a single, but several federal, state or local laws.

Wrongful termination laws in Alabama

Being an at-will employment state, Alabama law does not allow an employer to sue for wrongful termination simply because there was no reason for the termination.

However, there are laws that prohibit adverse action against employees through establishing groups with protected characteristics or protected conduct.

What constitutes adverse employee action?

firing
not hiring
demotion
passing up for promotion
change in terms or benefits

The following laws protect employees from wrongful termination.

Federal law

The USA federal government has passed numerous acts to protect employees from injustices. Here is a complete list of federal laws that prohibit wrongful termination.

Alabama law

Alabama has one state law that provides further protection, which is Alabama’s Worker’s Compensation Act. Based on this Act, it is illegal for an employer to fire, threaten to discharge or retaliate against an employee solely for seeking worker’s compensation.

Employee protection organizations in Alabama

You can turn to the following organizations if you feel you’ve been the victim of an adverse action at your workplace.

Alabama Department of Labor – https://labor.alabama.gov/
EEOC – Birmingham district office, Mobile local office

It is important you know that there are time limits to filing a wrongful termination claim. These time limits are set by the statute of limitations on wrongful termination cases in Alabama.

Wrongful termination damages available in Alabama

Taking a claim to court is generally the last option in wrongful termination cases. There are other means of settling the differences between the employer and employee, including mediation and arbitration. Your lawyer will work with you to negotiate a settlement that you are comfortable with.

If a settlement cannot be reached, the claim may be taken to court.

There are several types of wrongful termination damages available to plaintiffs, the measure of which will be determined by the court and jury.

Reinstatement
Front pay until the person finds a new job
Back pay
Out of pocket expenses incurred as a result of being wrongfully terminated
Court and attorney fees
Damages for pain and suffering
Punitive damages

Depending on the type of wrongful termination claim, some types of damages are not available and some are capped at a maximum amount.

How much money can you get?

Naturally, you might be curious as to what kind of settlements are reached.

Here is a listing of real wrongful termination cases and settlements from Alabama.

How to proceed?

If you think you were terminated from your job illegally or were discriminated against when applying for a job, you might be able to file a wrongful termination claim.

First of all, you’ll want to talk with an employment lawyer familiar with Alabama law.

Navigating the ins and outs of the legal system is difficult, which is why you need an employment attorney experienced in wrongful termination cases. First time legal consultations are usually free, where the lawyer will review your case and offer an opinion on your claim.

Most lawyers work on a contingency fee basis (30-40%), which means their fee will be a percentage of any settlement or award you get for your case. You will still be responsible for paying the official expenses associated with filing you case.

Once you hire a lawyer, you will be advised on what documents you need to gather, the statute of limitations for filing your claim and how to commence with the case.

Your goal is for you and your lawyer to negotiate the best possible settlement or severance package. If a settlement cannot be reached, the lawyer will take your case to court.

Here is an outline on how to file a wrongful termination claim.