February 3, 2026
Law

Wrongful Termination in Texas: What Employees Need to Know Before Taking Legal Action

Losing a job can be a difficult and emotional experience, especially when the termination feels unfair. In Texas, many employees are unsure whether their firing was legal due to the state’s at-will employment laws. Understanding how at-will employment works, its exceptions, and when a termination becomes unlawful is essential before taking legal action. This guide explains the basics every Texas employee should know.

Understanding At-Will Employment in Texas

Texas follows the at-will employment doctrine. This means an employer can terminate an employee at almost any time and for almost any reason. Employers are not required to give notice or provide a reason for the termination in most cases. Employees also have the right to leave a job at any time without penalty.

However, at-will employment does not give employers unlimited authority. While many terminations are legal even if they feel unfair, there are clear legal boundaries that employers cannot cross. When those boundaries are violated, a termination may be considered wrongful.

Important Exceptions to At-Will Employment

There are several key exceptions that limit an employer’s ability to terminate employees freely. These exceptions are often the foundation of wrongful termination claims in Texas.

Discrimination

Employers may not terminate employees based on protected characteristics. These include race, color, religion, sex, national origin, age, disability, and pregnancy. If an employee is fired because of one of these traits, the termination may violate state or federal anti discrimination laws.

Retaliation

Retaliation is another common exception. An employer cannot legally fire an employee for engaging in protected activities. Examples include reporting workplace harassment, filing a workers compensation claim, reporting safety violations, or participating in an investigation involving the employer. If termination follows closely after one of these actions, it may signal unlawful retaliation.

Public Policy Violations

Texas law also protects employees from termination that violates public policy. This includes being fired for refusing to perform illegal acts, serving on a jury, or fulfilling military service obligations. Employers cannot punish workers for obeying the law.

Employment Contracts and Policies

While most Texas employees are at will, some have employment contracts that limit when and how termination can occur. Additionally, certain employer policies may create obligations if they promise job security or specific disciplinary procedures. Violating these agreements can expose employers to legal risk.

Signs a Termination May Be Illegal

Not every unfair termination is wrongful, but some warning signs suggest illegal conduct. These may include being fired shortly after reporting misconduct, sudden termination despite strong performance reviews, or inconsistent explanations for why the termination occurred. Another red flag is when an employer treats similarly situated employees differently based on protected characteristics.

Harassment related terminations may also be unlawful. If an employee is fired after complaining about harassment or refusing inappropriate behavior, the termination may violate employment laws.

Steps to Take After a Wrongful Termination

Employees who believe they were wrongfully terminated should take careful and deliberate steps to protect their rights.

Common actions to consider include:

  • Collecting and preserving evidence such as emails, performance reviews, text messages, and employee handbooks
  • Writing down details about the termination while events are still fresh
  • Avoiding public discussions about the termination, including on social media
  • Reviewing company policies and any employment agreements

Timing is critical. Many employment claims have strict deadlines, especially those involving discrimination or retaliation. Missing a deadline can prevent an employee from pursuing compensation or other remedies.

Why Speaking With an Attorney Matters

Employment law in Texas can be complex, particularly when at-will employment is involved. Determining whether a termination was legal requires a careful review of the facts, applicable laws, and available evidence. Speaking with experienced legal professionals can help employees understand their rights and options.

Consulting with knowledgeable Wrongful Termination Lawyers Dallas can provide valuable insight into whether discrimination, retaliation, or another legal violation may have occurred. An attorney can also explain potential outcomes, guide employees through the claims process, and help avoid costly mistakes.

Final Thoughts

At-will employment gives Texas employers significant flexibility, but it does not eliminate employee rights. Wrongful termination occurs when an employer fires a worker for illegal reasons such as discrimination, retaliation, or violations of public policy. Employees who understand these exceptions are better prepared to recognize when a termination crosses the legal line.

If you believe your termination was unlawful, taking informed action is essential. Preserving evidence, understanding deadlines, and seeking legal guidance can help protect your interests and provide clarity during a challenging time.