Wrongful Termination Claims in Massachusetts: What Employers Need to Understand

By a Massachusetts Business Attorney · Employment Law

“I fired someone and I want to make sure I did it the right way,” a statement I’ve heard from many Massachusetts Business owners. This is a good instinct. While Massachusetts is an at-will employment state, that does not mean you can fire anyone for any reason. There are critical limits, and crossing them can lead to expensive litigation and MCAD complaints.

At-Will Employment Has Real Limits

Let’s start with what at-will means. In Massachusetts, under common law, employment is at-will by default. Either party can terminate the relationship at any time, without cause, without notice, unless there’s an agreement saying otherwise.

But here’s what employers get wrong: they confuse “at-will” with “unrestricted.” At-will employment does not mean you can fire someone for any reason whatsoever. There are significant limits carved out by statute and court decisions.

The key distinction is this: in a wrongful termination case, the burden shifts to you. Once an employee claims they were fired for an illegal reason, you must prove you had a legitimate, non-discriminatory business reason for the termination. You cannot sit back and force them to prove you acted illegally. That burden is on you.

This is a major point of confusion. Employers think, “I’m at-will, so I don’t need a reason.” Wrong. You need a reason, and you need to be able to prove it was legitimate.

Public Policy Exceptions to At-Will Employment

Massachusetts recognizes several public policy exceptions to at-will employment. These are situations where firing someone is against public policy, even though there’s no specific statute prohibiting it.

Jury duty. You cannot fire an employee for serving on jury duty or attending court as a juror. This is enshrined in M.G.L. c. 149, § 150.

Voting and political activity. You cannot discipline or discharge an employee for registering to vote or voting.

Refusal to commit an illegal act. This is the big one. If you fire someone because they refused to commit fraud, perjury, falsify records, or participate in any illegal activity, that’s wrongful termination. An employee cannot be forced to choose between their job and the law.

Reporting unsafe working conditions or violations. If an employee reports a safety violation, illegal working conditions, or environmental violations to you or to a regulatory agency, you cannot retaliate by firing them. This is covered by whistleblower protections.

Workers compensation claims. You cannot fire someone for filing a workers compensation claim or reporting a work-related injury.

Membership in unions or protected activities. Firing someone for union organizing, collective bargaining activity, or protected concerted activity violates both state and federal law.

Family and Medical Leave. You cannot fire someone for taking protected leave under the FMLA or Massachusetts Paid Family and Medical Leave Act.

Here’s something I see employers get wrong they think that as long as they have some legitimate reason for firing someone, they’re protected. But courts look beyond the stated reason to the underlying motivation. If the real reason was retaliation for jury duty or a workers comp claim, that’s wrongful termination, even if you can manufacture a different stated reason.

Discrimination and Retaliation Claims

Massachusetts discrimination law is broader and more protective than federal law. Under M.G.L. c. 151B, you cannot terminate someone based on:

• Race or color
• Religion
• National origin
• Ancestry or ethnic origin
• Sex (including pregnancy, gender identity, and sexual orientation)
• Gender identity or expression
• Sexual orientation
• Age (40 and over, broader than the federal ADEA)
• Disability (broader than the federal ADA)
• Genetic information
• Military or veteran status
• Marital status
• Arrest record (with some exceptions)
• Domestic violence victim status

Each of these protected classes has case law around it. For example, firing someone for pregnancy is discrimination based on sex. Firing someone because they disclosed a disability is discrimination based on disability. Firing someone after they file a discrimination complaint is retaliation.

The retaliation piece is critical. Under M.G.L. c. 151B, you cannot fire, discipline, or retaliate against an employee for:

• Filing a discrimination complaint with the MCAD.
• Reporting discrimination to you or anyone else
• Refusing to participate in discrimination
• Opposing discriminatory conduct
• Requesting a reasonable accommodation for a disability

So here’s the scenario: an employee reports that they’re being sexually harassed. You investigate and find the complaint has some merit. You fire the employee a month later for “performance issues.” Courts will infer retaliation unless you can prove the termination was for a reason wholly unrelated to the complaint.

The timing matters. If you fire someone shortly after they report discrimination or file a complaint, that’s a red flag for retaliation.

Protecting Yourself When Terminating

So what should you do? Here’s what I tell clients:

First, document everything. Before you fire someone, you should have documentation of performance issues, rule violations, or business reasons for the termination. This should span months, not weeks. A sudden termination after an employee reports discrimination looks like retaliation.

Second, investigate if there’s a complaint. If an employee reports discrimination, harassment, or an unsafe condition, you must investigate. Take it seriously. Failure to investigate can lead to liability.

Third, ensure consistency. If you fire someone for a rule violation, look at how you’ve treated similar violations before. If other employees did the same thing and were just warned, and you fire this person, that inconsistency suggests the real reason was discriminatory or retaliatory.

Fourth, follow your own policies. If your handbook says you give warnings before termination, give warnings. If you say you conduct investigations, conduct them. Deviating from your own procedures raises questions about motive.

Fifth, document the legitimate reason. Have a clear, written statement of why you’re terminating the employee. Base it on facts, not opinions. “Poor performance” is vague. “Failed to meet sales targets for three consecutive months despite training and warnings” is specific.

Sixth, be careful with at-will disclaimers. Even if you have a handbook that says “at-will employment,” courts look at the actual relationship. If you’ve been conducting performance reviews, giving warnings, and following progressive discipline, you’ve arguably limited your at-will rights.

Seventh, ensure the terminator is appropriate. If the person investigating a discrimination complaint is the same person terminating the employee, that’s a red flag. Distance is better. Have an independent decision-maker if possible.

Eighth, pay all final wages on time. As discussed in our article on the Massachusetts Wage Act, all accrued wages must be paid immediately upon termination. Failure to do this compounds your legal exposure.

Common Termination Mistakes

Let me walk you through scenarios I see frequently that lead to wrongful termination claims:

• Firing someone shortly after they report a problem. This invites a retaliation claim.
• Making comments about age, disability, or protected status during or after termination. Even offhand remarks can be evidence of discriminatory motive.
• Inconsistent application of rules. Firing someone for a violation that others have committed without consequence.
• Failing to accommodate a known disability. If an employee needs a reasonable accommodation and you fire them instead of engaging in the interactive process, that’s discrimination.
• Terminating based on unsubstantiated rumors or complaints. If you fire someone based on gossip without investigating, and the gossip relates to a protected category, you’re exposed.
• Not following your own termination procedures. If your handbook says you give 30 days notice and you fire someone without notice, that’s inconsistent with your stated practices.

The Bottom Line

At-will employment is real, but it’s not a free pass. Before you terminate anyone, ask yourself: Is there a legitimate, documented business reason? Have I treated this person consistently with how I’ve treated others? Am I retaliating against someone for a protected activity? If you cannot answer “yes” to all of these, talk to an attorney before proceeding.

Massachusetts courts and the MCAD take wrongful termination seriously. The burden is on you to prove you acted legitimately. Document everything, follow your own policies, investigate complaints, and be consistent.

If you’re planning a termination and want to make sure you’re protected, get legal guidance first. It’s much cheaper than defending a lawsuit afterward.

Call my office at 978-273-8337 or visit gaudetlawoffice.com to discuss a termination or to review your termination procedures.

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ABOUT THIS ARTICLE

This article was prepared by a Massachusetts attorney and is provided solely for general informational and educational purposes directed to members of the general public. It does not constitute legal advice and does not create an attorney-client relationship. The law applicable to any particular situation depends on the specific facts and circumstances of that matter. Readers are encouraged to seek the advice of a licensed Massachusetts attorney before taking any action.