District of Columbia (DC) Termination Laws

Termination laws in the District of Columbia (DC) are shaped by a combination of local and federal regulations, providing employees with protections while allowing employers to manage their workforce within legal limits. Understanding these laws is important for both sides to avoid costly mistakes. DC’s rules cover everything from wrongful termination claims to the legal grounds for ending employment. This guide breaks down the information employers and employees need to ensure fair and lawful terminations.

This Guide Covers

Legal Considerations for Termination in the District of Columbia
At-Will Employment in the District of Columbia
Lawful Termination in the District of Columbia
Legal Protections During Termination in the District of Columbia 
Terminated Employee Benefits in the District of Columbia
Layoffs in the District of Columbia
Resignations in the District of Columbia
Legal Cases Related to Wrongful Termination in the District of Columbia

Legal Considerations for Termination in the District of Columbia

When terminating an employee in the District of Columbia, employers must comply with both local and federal regulations. Here are the key points to consider:

  • Discrimination Laws: Employers cannot terminate employees based on race, color, religion, sex, national origin, disability, age, sexual orientation, gender identity, or other protected categories under the District of Columbia Human Rights Act and federal laws. All terminations must be based on valid, non-discriminatory reasons.
  • Retaliation Protection: Employees in the District of Columbia are protected from retaliation if they report illegal activities, fraud, or safety concerns. The District’s Whistleblower Protection Act ensures that employees cannot be fired or penalized for raising these concerns.
  • Final Paycheck: Terminated employees must receive their final wages by the next working day. This payment must include any earned wages, unused vacation, and other due compensation.
  • Notice Requirements: District of Columbia law does not mandate advance notice for termination, but employers must adhere to contractual obligations or internal policies.
  • Noncompete Agreements: Employers must review noncompete agreements to ensure they are enforceable under District of Columbia law. Since the Ban on Non-Compete Agreements Amendment Act, noncompete agreements are generally only enforceable for employees earning over $150,000 annually.
  • Cannabis Use Protections: Under the Cannabis Employment Protections Amendment Act of 2022, employers are prohibited from terminating or penalizing employees for the use of cannabis or participation in medical cannabis programs unless the employee holds a safety-sensitive position. This law protects employees from being penalized based on cannabis drug tests unless impairment is demonstrated.

At-Will Employment in the District of Columbia

What is At-Will Employment?

Employment In the District of Columbia is considered at-will. This means that either the employer or employee can end the working relationship at any time, for any legal reason, or even without providing a reason. In practice, this allows employees to be terminated without advance notice as long as the termination doesn’t violate any anti-discrimination laws. 

That said, while at-will employment gives both sides flexibility, there are important exceptions designed to protect employees from wrongful termination.

What are the Exceptions to At-Will Employment in the District of Columbia?

While at-will employment gives employers in the District of Columbia the freedom to terminate employees for most reasons, there are a few clear exceptions that protect workers from being wrongfully fired.

  • Public Policy Exception: Employers can’t terminate employees for reasons that go against public policy. This includes cases where employees refuse to do something illegal, exercise their legal rights (like filing for workers’ compensation), or report illegal actions by the company.
  • Implied Contract Exception: An implied contract can exist if company policies, handbooks, or verbal promises suggest specific termination procedures. If these are in place, firing an employee without following the set rules could be considered wrongful termination.

Employment Under Contract in the District of Columbia

Not all jobs in the District of Columbia (DC) fall under the at-will category. For positions governed by an employment contract, the terms of employment, including how and when it can end, are set in writing. Employment contracts offer more security compared to at-will employment since they define specific conditions for termination, such as misconduct or poor performance.

Contracts can outline job duration and stipulate termination terms, which are enforceable in court. A valid written contract is required for any agreement between District employees and contractors. Verbal agreements do not hold the same legal weight and can lead to penalties for those involved. Any violation of these rules, including unauthorized oral agreements, can result in termination of the employee responsible.

Contracts provide clear expectations, and if disputes arise, they serve as enforceable evidence, ensuring both parties are protected under the law.

Lawful Termination in the District of Columbia

Legal Grounds for Termination in the District of Columbia

Employers in the District of Columbia (DC) must comply with both federal and local laws when terminating employees. Valid legal grounds for termination include:

  • Performance Issues: Employers can terminate employees for not meeting job performance standards, such as poor quality of work, missed deadlines, or failure to achieve set goals. To avoid legal disputes, it’s important for employers to document these issues and provide feedback or warnings before proceeding with termination. Documentation shows that the employer gave the employee a chance to improve.
  • Misconduct: Termination for misconduct is justified when an employee deliberately acts against the company’s interests. Common examples include chronic tardiness, insubordination, or unprofessional behavior. In cases of serious misconduct, such as theft or creating a hostile work environment, immediate termination may be warranted. Under DC law, employees terminated for misconduct may face a reduction in unemployment benefits. For example, those discharged for misconduct may be ineligible for unemployment benefits for the first 8 weeks following termination and could see their total benefit amount reduced.
  • Business Necessity: DC Employers can also terminate employees for business-related reasons, such as economic downturns, organizational restructuring, or operational changes that require a reduction in staff. This type of termination, often referred to as a layoff, is driven by the company’s financial needs rather than employee performance.

Explore our complete guide to firing employees in the District of Columbia for further information.

How Do I File a Wrongful Termination Claim in the District of Columbia?

Filing a wrongful termination claim in District of Columbia (DC) starts with determining whether the termination violated any legal protections, such as discrimination or retaliation. Employees should gather documents like employment contracts and emails that support their case.

For discrimination claims, employees need to file with the DC Office of Human Rights (OHR) within a year of the incident. The process includes submitting an intake form and cooperating with OHR during the review. In cases involving federal discrimination laws, claims should be directed to the Equal Employment Opportunity Commission (EEOC), with deadlines ranging from 180 to 300 days. Acting quickly and having proper documentation is necessary to ensure a thorough review of the case.

Legal Protections During Termination in the District of Columbia

When it comes to termination in the District of Columbia (DC), employers have to follow both federal and local laws that protect employees during the process. Key protections for DC employees include: 

  • Title VII of the Civil Rights Act: The primary law protecting employees from discrimination is Title VII of the Civil Rights Act of 1964. This federal law prohibits employers from terminating employees based on race, color, religion, sex, or national origin. These protections cover all aspects of employment, including termination.
  • Age Discrimination in Employment Act: The Age Discrimination in Employment Act (ADEA) protects employees who are 40 years or older from being terminated due to their age. Age cannot be a factor in the decision to terminate employment.
  • Americans with Disabilities Act: The Americans with Disabilities Act (ADA) prevents employers from terminating employees based on a disability as long as the employee can perform the necessary functions of the job with or without reasonable accommodations.
  • Worker Adjustment and Retraining Notification Act: The federal Worker Adjustment and Retraining Notification (WARN) Act requires employers to provide advance notice in cases of mass layoffs or plant closures. The WARN Act ensures that employees receive enough time to prepare for the job loss and seek alternative employment or training.
  • District of Columbia Human Rights Act: DC’s own anti-discrimination District of Columbia Human Rights Act (DCHRA) goes even further than federal laws, prohibiting termination based on a wide range of 23 protected characteristics including race, color, sex, age, marital status, gender identity, sexual orientation, familial responsibilities, and more. It also covers discrimination based on pregnancy, childbirth, or reproductive health decisions.
  • Final Paycheck Law: Under DC law, employers must comply with the Code of the District of Columbia § 32-1303 when paying terminated employees. This law requires employers to pay final wages by the next working day after termination. If an employee resigns, they must receive their final paycheck by the next regular payday or within seven days, whichever comes first. Failure to meet these deadlines can result in liquidated damages, which include either 10% of the unpaid wages per day or up to three times the unpaid amount, whichever is less.
  • Ban on Non-Compete Agreements Amendment Act: As of October 1, 2022, the Ban on Non-Compete Agreements Amendment Act prohibits noncompete agreements for employees earning less than $150,000 annually. This law limits the enforceability of noncompetes to high-earning professionals and includes specific provisions for medical specialists.
  • Cannabis Employment Protections Amendment Act of 2022: Under the Cannabis Employment Protections Amendment Act of 2022, employers in DC are prohibited from terminating or taking other adverse actions against employees for cannabis use or participation in medical cannabis programs, except for those in safety-sensitive positions.
  • Whistleblower Protection Act: Under D.C. Law 18-117, employees are protected from retaliation when they report illegal activities, fraud, or safety concerns in the workplace. The law ensures that employees cannot be terminated for exposing wrongdoing or for participating in investigations.
  • Family and Medical Leave Acts: Both the federal Family and Medical Leave Act (FMLA) and the DC Family and Medical Leave Act (DCFMLA) protect employees from being terminated for taking qualified family or medical leave. Under DC law, employees are entitled to 16 workweeks of family leave over a 24-month period, with protection from retaliation for using their leave rights.

Terminated Employee Benefits in the District of Columbia

Terminated DC employees are entitled to certain benefits, depending on the circumstances of their termination.

  • Final Paycheck: According to the Code of the District of Columbia § 32–1303, employers must provide terminated employees with their final paycheck by the next business day following termination. This includes all earned wages, as well as any accrued but unused vacation or paid time off (PTO).
  • Continuation of Health Coverage: Under DC’s Continuation of Coverage Law § 32-732, terminated employees can extend their health insurance for up to three months. This benefit is similar to federal COBRA but applies to smaller employers. Employees are responsible for paying the full premium, plus up to a 2% administrative fee, unless they qualify for premium assistance under federal law.
  • Unemployment Insurance: DC employees who lose their job through no fault of their own may qualify for unemployment benefits. To be eligible, workers must meet specific wage requirements during a 12-month base period. Benefits are typically paid for up to 26 weeks, with a maximum weekly benefit of $444. Unemployment benefits require an active job search, and claimants must meet all eligibility criteria.

Layoffs in the District of Columbia

Layoffs happen when companies need to downsize due to financial constraints, operational shifts, or restructuring. These layoffs aren’t performance-based but are instead driven by business needs. Employers must follow both federal and local regulations when carrying out layoffs.

The Worker Adjustment and Retraining Notification (WARN) Act requires companies with 100 or more employees to provide at least 60 days’ notice before a mass layoff or plant closure affecting 50 or more workers. This gives employees time to prepare and explore new job opportunities.

In terms of payment, laid-off employees are entitled to receive their final paycheck, including any earned wages and accrued vacation or PTO, on the next business day under the Code of the District of Columbia § 32–1303. Employers who fail to meet these payment deadlines may face penalties.

To help affected workers, DC’s Rapid Response team, which operates through the Department of Employment Services (DOES), offers valuable assistance. The team provides resources for unemployment benefits, retraining opportunities, and job search support to help employees transition back into the workforce smoothly.

Resignations in the District of Columbia

In the District of Columbia (DC), resignations can be classified as either voluntary or involuntary. Employees have the freedom to leave their jobs at any time under the “at-will” employment structure. However, the process can differ depending on whether the resignation is voluntary or involves coercion.

Voluntary Resignations

Voluntary resignations occur when an employee independently decides to leave their position. Common reasons might include a new job opportunity, personal reasons, or dissatisfaction. While DC law doesn’t require employees to give notice, it’s considered professional to do so, especially if it aligns with company policies. When an employee resigns, employers should process final paychecks promptly, adhering to DC wage payment laws.

Involuntary Resignations

Involuntary resignations, also known as constructive discharge, occur when an employee feels forced to resign due to intolerable work conditions. If an employer creates a hostile or unbearable environment, significant changes in job responsibilities, or applies undue pressure, the resignation may be legally considered involuntary. In these cases, employees could have grounds for a wrongful termination claim. DC laws provide protections for employees who resign under such conditions, ensuring that they are not penalized for leaving an unworkable situation.

Legal Cases Related to Wrongful Termination in the District of Columbia

1. Blinded Veterans Association Settles Wrongful Termination Lawsuit for $150,000

In a case that underscores the importance of age discrimination laws, the Blinded Veterans Association (BVA) found itself facing a wrongful termination lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC). The lawsuit, EEOC v. Blinded Veterans Association, highlighted how the organization unfairly targeted two longstanding employees based on their age, ultimately forcing them out of their positions.

Lazaro Martinez, who had worked for BVA for 34 years, and Suzanne Matthews, who had served for 15 years, were both repeatedly questioned about their retirement plans by their supervisors. Despite their continued commitment to their jobs, both were eventually forced into situations where they had to compete for newly created positions with unfair conditions that seemed designed to exclude them. Martinez, 76, and Matthews, 70, were denied these positions in favor of significantly younger employees.

The EEOC’s lawsuit alleged that BVA’s actions violated the Age Discrimination in Employment Act (ADEA), which protects employees over the age of 40 from termination due to age. The case concluded with BVA agreeing to pay $150,123 in compensation and implementing changes to prevent future age-based discrimination. The settlement also included mandatory anti-discrimination training for BVA’s management and HR staff, ensuring compliance with ADEA regulations in the future.

Key lessons learned from the case:

  • Terminating older employees based on age violates the Age Discrimination in Employment Act.
  • Pressuring employees into retirement can lead to legal consequences, as it may be viewed as a wrongful termination tactic.
  • Employers must take proactive measures, such as offering training on discrimination laws, to prevent wrongful terminations based on age.

Explore our comprehensive guide to learn more about the District of Columbia Labor Laws.

Important Cautionary Note

This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.