Wrongful Termination in New Jersey: Do You Have a Claim?

Wrongful Termination in New Jersey

New Jersey is an "at-will" employment state, which means that — absent a contract or legal protection — an employer can terminate an employee for any reason or no reason at all, and an employee can quit for any reason. However, there are significant exceptions that make many terminations unlawful.

When Is a Termination "Wrongful" in NJ?

1. Discrimination

Under the NJ Law Against Discrimination (NJLAD), it is illegal to terminate an employee because of:

• Race, color, national origin, or ancestry
• Sex or pregnancy
• Religion
• Disability (physical or mental)
• Age (40+)
• Marital status
• Sexual orientation or gender identity
• Military status
• Genetic information

The NJLAD applies to all NJ employers — even those with just one employee.

2. Retaliation

It is illegal to terminate an employee in retaliation for:

• Reporting workplace discrimination or harassment
• Filing a workers' compensation claim
• Taking FMLA or NJ Family Leave
• Reporting wage theft
• Whistleblowing (reporting illegal activity by the employer)
• Refusing to participate in illegal activity

3. Violation of an Employment Contract

If you have an employment contract (written or implied) that limits the employer's right to terminate, a termination in violation of that contract is wrongful. Implied contracts can arise from employee handbooks, offer letters, or oral promises.

4. Violation of Public Policy

NJ recognizes a "public policy" exception to at-will employment. Termination is wrongful if it violates a clear mandate of public policy — such as firing an employee for serving on jury duty, voting, or refusing to commit a crime.

Proving a Wrongful Termination Claim

In a discrimination case, you must show:

1. You are a member of a protected class
2. You were qualified for the position
3. You were terminated
4. The employer treated similarly situated employees outside your protected class more favorably

The employer then has the burden to articulate a legitimate, non-discriminatory reason for the termination. You must then show that reason is pretextual (a cover for discrimination).

Damages in a Wrongful Termination Case

• Back pay — wages lost from termination to judgment
• Front pay — future lost wages (if reinstatement is not feasible)
• Compensatory damages — emotional distress, humiliation
• Punitive damages — for egregious conduct (available under NJLAD)
• Attorney's fees — recoverable under NJLAD

Time Limits

NJLAD claims must be filed within 2 years of the discriminatory act. Federal discrimination claims (Title VII, ADEA, ADA) have a 300-day deadline to file with the EEOC.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Please consult a licensed New Jersey attorney for advice specific to your situation.