Navigating the Legal Challenges of Employee Termination in New York State

Firing an employee is never easy. In New York State, it can also be legally complicated. Whether you’re an employer making a tough decision or an employee who’s been let go, it’s essential to understand your rights and responsibilities. What should you know about employee termination laws in New York?

New York Is an “At-Will” Employment State

In New York, most jobs are considered “at-will.” An employer can terminate an employee anytime and for almost any reason. Likewise, employees are free to leave their jobs at any time.

But there are limits.

Employers can’t fire someone for an illegal reason. That includes discrimination based on race, gender, religion, age, disability, or sexual orientation. Employers also can’t retaliate against workers for reporting harassment, filing complaints, or exercising their rights.

Common Legal Pitfalls

Many employers assume “at-will” means they don’t need a reason to fire someone. While technically accurate, it’s risky to rely on that. A sudden or poorly documented termination can still lead to legal trouble, especially if the worker believes the firing was unfair or unlawful.

Here are a few common issues:

• Discrimination claims: If an employee is part of a protected class and believes this is the basis for an unfair job termination, firing them could trigger a lawsuit.
• Retaliation claims: Terminating someone after they file a wage complaint or report misconduct or recently complained about unequal treatment can appear retaliatory, even if unrelated.
• Contract violations: Some workers have employment contracts, either written or implied, that change the at-will relationship. Breaking those terms can lead to legal consequences.

Termination Best Practices for Employers

Employers can reduce legal risk by being consistent, fair, and transparent. A few best practices include:

• Keep detailed records: Document performance issues, disciplinary actions, and any warnings given. This can be critical if a claim arises later.
• Follow your policies: Apply your company’s employee handbook and policies equally. Don’t make exceptions unless you can explain why.
• Avoid rushed decisions: Review the situation with HR or legal counsel. A quick decision made in frustration can become a long-term legal headache.
• Provide an apparent reason: While not always legally required, giving a clear reason for termination helps demonstrate fairness and protects against wrongful discharge claims.

What Employees Should Know

If you’ve been fired, it’s normal to have questions. Was the firing legal? Were you treated fairly? Should you pursue legal action?

Start by reviewing your employment status. Did you have a contract? Were there any warnings or write-ups? Think about the timing—did your termination happen shortly after you filed a complaint or requested medical leave?

Employees who suspect discrimination or retaliation should speak with an employment attorney. Time limits for filing a claim can be short, so it’s important not to wait too long.

You can read more about New York’s termination laws here.

Severance, Unemployment, and Final Pay

New York law doesn’t require employers to provide severance pay. But if a severance agreement is offered, review it carefully. These agreements often include waivers that limit your ability to sue later.

You may still qualify for unemployment benefits, depending on the reason for your termination. Being fired for poor performance usually won’t disqualify you. However, being fired for serious misconduct might be a possibility.

Final pay must be given by the next scheduled payday, regardless of the reason for termination. You may have legal recourse if you don’t receive your last paycheck.

Know Your Rights—and Get the Right Help

Employee termination laws in New York can be legally messy, even in an at-will employment state like New York. Both sides need to understand their rights and obligations. When in doubt, consult with a legal professional.

At Borrelli & Associates, P.L.L.C., we help employees and employers navigate complex workplace issues, including wrongful termination, retaliation, and contract disputes. If you need advice on a recent termination, whether you were let go or decided to terminate, our team is here to help you move forward confidently. Contact us today to schedule a confidential consultation.