Mississippi Termination Laws

September 11th 2024

Mississippi termination laws provide a framework for employers and employees to understand their rights and obligations when it comes to ending an employment relationship. Both employers and employees need to understand these regulations to manage terminations properly and reduce the risk of disputes. This article will explore the key aspects of termination laws in Mississippi.

This Guide Covers

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

Legal Considerations for Termination in Mississippi

When terminating an employee in Mississippi, there are legal considerations employers must understand and adhere to minimize the risk of legal challenges. The considerations include:

  • Anti-Discrimination Laws: Employers cannot terminate employees based on protected characteristics such as race, color, religion, sex, national origin, age (40 or older), disability, or genetic information.
  • Retaliation Protections: It is illegal to fire an employee in retaliation for engaging in legally protected activities, such as filing a discrimination claim, participating in an investigation, or whistleblowing.
  • Employment Contracts: If an employee has an employment contract, the terms of that contract must be followed. This includes any clauses related to termination. Breaching an employment contract could lead to wrongful termination claims.
  • Public Policy Exception: Terminations that violate public policy are prohibited. For example, firing an employee for refusing to commit an illegal act or exercising a legal right, such as filing a workers’ compensation claim, could be wrongful.
  • Wage and Hour Compliance: Employers must ensure that all final wages, including unpaid wages, accrued vacation time (if company policy provides), and any owed commissions or bonuses, are paid in a timely manner after termination.
  • Severance Pay: While Mississippi does not require severance pay, if a severance agreement is in place, it must comply with both the terms of the agreement and any applicable laws.
  • Unemployment Benefits: Terminated employees may be eligible for unemployment benefits unless terminated for misconduct. Employers should be prepared to document the reasons for termination if a claim is contested.
  • Documentation: Proper documentation of the reasons for termination and the process followed is important. This can protect employers from potential wrongful termination claims.

At-Will Employment in Mississippi

What is At-Will Employment?

At-will employment is a legal doctrine that governs the employment relationship in Mississippi. Under this doctrine, either the employer or employee can terminate the employment relationship at any time, for any reason, or no reason at all, without prior notice, as long as the reason is not illegal.

What are the Exceptions to At-Will Employment in Mississippi?

While Mississippi adheres to the at-will employment doctrine, several key exceptions exist where the employment relationship cannot be terminated at will. These exceptions are designed to protect employees from unfair or illegal dismissal:

  • Discrimination: Employers in Mississippi cannot terminate an employee based on discrimination against protected characteristics such as race, color, religion, sex, national origin, age (40 or older), or disability.
  • Retaliation: Employees are protected from being terminated in retaliation for engaging in certain legally protected activities, such as filing a complaint for discrimination, harassment, or wage violations, reporting safety violations, participating in whistleblower activities, or taking family or medical leave under the Family and Medical Leave Act (FMLA).
  • Public Policy Violation: Terminations that violate public policy are an exception to the at-will employment doctrine. This includes firing an employee for refusing to perform an illegal act at the employer’s request.
  • Implied Contracts: While Mississippi does not require written contracts for most employment relationships, an implied contract can sometimes be through the employer’s verbal promises of job security. Written statements in employee handbooks, policies, or offer letters suggest specific termination terms.

Employment Under Contract in Mississippi

Employment under contract in Mississippi refers to situations where the terms of employment are explicitly outlined in a written agreement between the employer and the employee. This contract overrides the at-will employment doctrine, providing specific terms and conditions that govern the employment relationship.

Written contracts clearly outline the terms of employment, including duration, duties and responsibilities, compensation and benefits, performance expectations, and conditions for termination. Contracts often include specific reasons an employee can be terminated (e.g., misconduct, poor performance, or violation of company policies).

If an employee fails to meet the contract terms, the employer may have grounds to terminate the employee, take legal action, or withhold certain benefits. If the employer fails to honor the contract terms, the employee may sue for breach of contract.

Lawful Termination in Mississippi

Legal Grounds for Termination in Mississippi

Termination of employment in Mississippi must be done within the bounds of federal and state laws to ensure it is lawful. Key legal grounds for termination include:

  • Performance Issues: Employees may be terminated for poor performance or failure to meet job expectations. Employers should document performance issues and provide feedback or opportunities for improvement before proceeding with termination. Proper documentation and adherence to company policies are important to ensure that performance-related terminations are justified.
  • Misconduct: Termination is permissible if an employee engages in misconduct, such as theft, fraud, insubordination, or violation of company policies. Employers must document the incidents of misconduct and follow any established disciplinary procedures to support the termination decision.
  • Business Necessity: Employers may terminate employees due to business needs, such as economic downturns, restructuring, or downsizing. Such decisions should be based on legitimate business reasons and executed in a manner that does not discriminate or unfairly target specific employees.
  • Job Abandonment: An employee who fails to report to work without notifying the employer or providing a valid excuse may be considered to have abandoned their job. Companies often have policies defining what constitutes job abandonment and the process for terminating employees under such circumstances.
  • Employment Contract Expiration: When an employment contract reaches its end date, termination is typically considered lawful if the contract was set for a specific term or project. Employers must adhere to any terms and conditions outlined in the contract regarding termination and renewal.

Read our comprehensive guide to firing employees in Mississippi for further information.

How Do I File a Wrongful Termination Claim in Mississippi?

To file a wrongful termination claim in Mississippi, employees are advised to gather all relevant documentation related to their termination (e.g., employment contracts, performance reviews, and any correspondence). Employees must determine if their termination violated any state or federal laws.

For claims that involve discrimination or retaliation, employees can file a complaint with the U.S. Equal Opportunity Commission (EEOC) and must file within 180 days of the termination. Employees are advised to consult an employment attorney if claims are based on a breach of contract or another legal issue.

Legal Protections During Termination in Mississippi

When it comes to termination, both state and federal laws provide important legal protection for employees in Mississippi. Key laws that safeguard Mississippi employees include:

  • Title VII of the Civil Rights Act of 1964: Title VII of the Civil Rights Act of 1964 is a federal law that prohibits employers from terminating employees based on race, color, religion, sex (including pregnancy, sexual orientation, and gender identity), or national origin. Under Title VII, it is illegal to fire an employee due to any of these protected characteristics.
  • Age Discrimination in Employment Act (ADEA): The ADEA protects employees aged 40 and older from termination based on age. Employers cannot fire older workers to replace them with younger employees.
  • Americans with Disabilities Act (ADA): The ADA prohibits termination based on an employee’s disability. Terminating an employee due to their disability or failure to accommodate them can result in legal action.
  • Occupational Safety and Health Act (OSHA): The OSHA Act of 1970 protects employees who report unsafe working conditions or violations of occupational safety and health regulations. Employers are prohibited from terminating or retaliating against employees who exercise their rights under the OSHA Act, including filing safety complaints or refusing to work in unsafe conditions.
  • Family and Medical Leave Act (FMLA): The FMLA allows eligible employees to take up to 12 weeks of unpaid leave for certain family and medical reasons without fear of losing their job. Employers cannot terminate employees for taking FMLA leave or retaliate against them for exercising their rights under FMLA.
  • Uniformed Services Employment and Reemployment Rights Act (USERRA): USERRA protects military service members from being terminated due to their service obligations. Employers must reinstate employees returning from military duty to their previous positions with the same benefits and pay, and they cannot terminate employees because of their service.
  • Whistleblower Protection Act: The Whistleblower Protection Act is a federal law that protects employees who report illegal activities or violations of public policy within their organization. This protection applies to reporting safety violations, fraud, or other illegal activities.
  • Mississippi Workers’ Compensation Law: The Mississippi Workers’ Compensation Law is a state law that protects employees from being terminated in retaliation for filing a workers’ compensation claim. If an employee is injured on the job and files a claim, it is illegal for the employer to fire them as a form of retaliation.
  • Mississippi Employment Protection Act (MEPA): The Mississippi Employment Protection Act requires employers to use E-Verify to confirm that all new hires are legally authorized to work in the U.S. Non-compliance, such as hiring unauthorized workers, can result in penalties and may lead to termination-related consequences, including the potential loss of business licenses.

Terminated Employee Benefits in Mississippi

In Mississippi, terminated employees’ benefits and rights vary depending on whether their termination is voluntary or involuntary. Benefits for a terminated employee might include:

  • Final Paycheck: Terminated employees must receive their final paycheck, including any wages earned up to the termination date. Mississippi law requires that the final paycheck be issued should be provided as soon as possible, typically within the next regular payday.
  • Unemployment Compensation: Employees who are terminated involuntarily may be eligible for unemployment benefits. The Mississippi Department of Employment Security (MDES) determines eligibility for unemployment compensation. To qualify, the employee must meet certain criteria, such as having worked a minimum number of hours and not being terminated for cause (e.g., misconduct).
  • Health Insurance Continuation: When employees are terminated, they may be eligible to continue their health insurance coverage under the federal Consolidated Omnibus Budget Reconciliation Act (COBRA) or Mississippi Mini-COBRA.
    • The federal COBRA applies to employers with 20 or more employees. Under COBRA, terminated employees (except those for gross misconduct) can continue their group health insurance coverage for up to 18 months, with the possibility of extensions in certain circumstances. However, employees must pay the full premium, including the employee’s and employer’s previous contributions, plus a small administrative fee.
    • The Mississippi Mini-COBRA law applies to employers with fewer than 20 employees. It requires former employees and their dependent family members to have the option to continue their health insurance coverage. To be eligible for the state’s Mini-COBRA, the employee must have been enrolled in the group health plan for at least three consecutive months before termination.
  • Severance Pay: Mississippi law does not mandate severance pay, but it may be offered based on the employer’s policies, employment contracts, or collective bargaining agreements. If offered, severance pay terms should be outlined in company policy or the employee’s contract.

Layoffs in Mississippi

In Mississippi, layoffs are generally governed by the federal Worker Adjustment and Retraining Notification (WARN) Act, which requires employers with 100 or more employees to provide at least 60 days’ notice before a mass layoff or plant closing. Mississippi does not have specific state laws regarding layoffs, so employers must adhere to federal regulations. Employees affected by layoffs may be eligible for unemployment benefits, and employers must ensure that final wages, including any accrued vacation pay, are paid by the next regular payday.

Resignations in Mississippi

In Mississippi, resignations are categorized into two main types: voluntary and involuntary.

Voluntary Resignations

Voluntary resignation occurs when an employee leaves the job of their own accord. Employees are generally expected to provide a notice period, often specified in their employment contract or company policy. The notice period allows the employer to prepare for the employee’s departure, such as hiring a replacement or redistributing the employee’s duties. While Mississippi does not have specific state laws governing resignation notice periods, providing at least two weeks’ notice is considered a professional standard.

Involuntary Resignations

Involuntary resignation, or constructive discharge, occurs when an employee is forced to resign due to external pressures. For example, the employee may feel compelled to resign due to intolerable working conditions or significant changes in their employment terms. In such cases, the employee may argue that their resignation was not truly voluntary, and they may seek legal recourse if they believe their employer violated their rights and wrongfully terminated them.

Legal Cases Related to Wrongful Termination in Mississippi

1. Medical Center Pays $100,000 in Disability Discrimination Suit

In the case of Beatrice Chambers v. River Region Medical Center, Beatrice Chambers, a licensed practical nurse with 36 years of service, faced significant challenges following shoulder surgery. Chambers requested an extension of her medical leave or a return to work on light duty based on the recommendations of her physical therapist and physician. River Region Medical Center, however, denied these requests, failed to provide any reasonable accommodations, and ultimately terminated her employment.

Chambers filed a lawsuit alleging disability discrimination under the Americans with Disabilities Act (ADA). The investigation and subsequent litigation of the U.S. Equal Employment Opportunity Commission (EEOC) revealed that River Region’s refusal to accommodate Chamber’s disability and engage in an interactive process violated federal laws. The case was settled for $100,000, with the agreement also requiring the medical center to provide ADA training, review its policies, and post notices about employee rights under the ADA.

Key Lessons Learned from the Case:
  • Employers must provide reasonable accommodations for employees with disabilities and engage in an interactive process to find solutions, as mandated by the ADA.
  • An inflexible approach to medical leave and accommodation can lead to significant legal consequences for employers.
  • Employers are encouraged to provide ADA training and clear communications of policies to prevent discrimination and ensure compliance with federal regulations.

2. Trucking Company Pays $55,000 to Settle Retaliation Lawsuit

In the case of Eric Newton v. Knight Transportation, Inc., the Phoenix-based trucking company faced legal action after firing Newton, a dispatcher at their Olive Branch, Mississippi facility. Newton, who worked as a night shift dispatcher supervisor, reported racial slurs made by a driver to management. Instead of investigating his complaint, Knight Transportation retaliated by terminating Newton’s employment.

The EEOC’s lawsuit, filed in the U.S. District Court for the Northern District of Mississippi, alleged that Knight Transportation’s actions violated Title VII of the Civil Rights Act of 1964, prohibiting retaliation against employees who report discriminatory behavior. The company agreed to pay Newton $55,000 in monetary relief and implement a 24-month agreement. This agreement requires Knight Transportation to provide training on discrimination, retaliation, and harassment to all truck drivers at its Olive Branch facility via an audio CD.

Key Lessons Learned from the Case:
  • Employers must take internal complaints of discrimination seriously and conduct thorough investigations to prevent retaliation.
  • Retaliating against employees for reporting discrimination violates federal law and undermines workplace trust and morale.
  • Effective training and communication are important for maintaining a respectful and compliant work environment and can help prevent legal disputes.

Learn more about Mississippi Labor Laws through our detailed guide.

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.