Missouri Termination Laws

Employment termination in Missouri requires a thorough understanding of both state and federal laws. Following these rules helps avoid legal problems for employers and employees regardless of performance or other factors. This article explains the legal aspects of termination, employee protections, and the steps to take in cases of wrongful termination.

This Guide Covers

Legal Considerations for Termination in Missouri

At-Will Employment in Missouri

• What is At-Will Employment?
• What are the Exceptions to At-Will Employment in Missouri?
• Employment Under Contract in Missouri

Lawful Termination in Missouri

• Legal Grounds for Termination in Missouri
• How Do I File a Wrongful Termination Claim in Missouri?

Legal Protections During Termination in Missouri

Terminated Employee Benefits in Missouri

Layoffs in Missouri

Resignations in Missouri

Legal Cases Related to Wrongful Termination in Missouri

Legal Considerations for Termination in Missouri

Before terminating an employee in Missouri, it is important to take certain legal considerations into account. These considerations include:

• Discrimination Laws: Employers in Missouri must follow laws that forbid discrimination based on protected characteristics. The Missouri Human Rights Act (MHRA) prevents discrimination based on race, color, religion, sex, national origin, ancestry, age, or disability. Employers must also comply with federal laws, including Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA), and the Age Discrimination in Employment Act (ADEA).
• Protection Against Retaliation: It is illegal for Missouri employers to retaliate against employees for participating in protected activities. These activities include reporting discrimination or harassment, filing complaints with government agencies, or engaging in whistleblowing.
• Final Wages: According to Missouri Revised Statute 290.110, employers must pay all owed wages to a discharged employee immediately upon termination. If the employer fails to make this payment, the employee may be entitled to additional wages and penalties for each day the payment is delayed, up to a maximum of 60 days.
• Notice Requirements: Missouri law does not generally require employers to provide advance notice of termination. However, if there are contractual obligations or company policies regarding notice periods, those should be followed. Providing notice, while not always required, can help avoid misunderstandings.
• Documentation and Recordkeeping: Employers should document the termination process thoroughly. This includes keeping records of the reasons for termination, communication with the employee, and any agreements or severance packages.

At-Will Employment in Missouri

What is At-Will Employment?

At-will employment is a legal doctrine that allows the employer or the employee to end the employment relationship at any time, with or without cause, and without prior notice. This means that the employer can terminate an employee for any reason or without providing a reason, and an employee can leave their job for any reason without facing legal repercussions.

Missouri follows the at-will employment doctrine, which allows flexibility in the employer-employee relationship. Employers must still consider legal exceptions and protections to avoid misuse and maintain fairness in the workplace.

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

In Missouri, there are several exceptions to the at-will employment rule, which provide protections for employees in certain situations:

• Public Policy Violation: In Missouri, employers are prohibited from firing employees for exercising their legal rights or refusing to engage in illegal activities. Terminations that violate established public policies, such as these, are not allowed.
• Discrimination: Both federal and Missouri state laws prohibit firing employees based on protected characteristics like race, color, religion, sex, national origin, age, disability, or genetic information. Termination decisions must be based on legitimate business reasons and not influenced by discrimination.

Employment Under Contract in Missouri

Employment contracts in Missouri define the relationship between employers and employees. These agreements often cover job duties, salary, benefits, and conditions for termination, providing structure beyond at-will employment. Contracts can be either written or oral, though written agreements are preferred, especially if the terms extend beyond one year due to Missouri’s Statute of Frauds.

Lawful Termination in Missouri

Legal Grounds for Termination in Missouri

Employers in Missouri must follow legal guidelines when terminating employees to ensure the dismissal is justified and compliant with state laws.

• Performance Issues: In Missouri, employers have the right to terminate employees who consistently fail to meet performance standards. This may include poor job execution, failure to meet deadlines, or an inability to handle responsibilities. Employers typically provide warnings and document performance problems before deciding to terminate.
• Misconduct: Missouri law allows employers to fire employees for misconduct, which can involve breaking workplace rules, inappropriate behavior, or engaging in illegal activities that affect their jobs. This may include theft, harassment, or violating company protocols. 
• Violation of Company Policies: Termination is also justified when employees violate established company policies. Missouri employers must ensure that these policies, often outlined in employee handbooks, are clearly communicated to all staff. Policy violations could include issues such as attendance problems, breach of confidentiality, or failure to adhere to safety regulations.

How Do I File a Wrongful Termination Claim in Missouri?

Before filing a wrongful termination claim in Missouri, it’s important to understand that employers can terminate employees for any reason or no reason at all unless it violates certain protections. These protections include discrimination based on protected characteristics, as outlined by civil rights laws. Other grounds for wrongful termination include retaliation for whistleblowing or refusing to engage in illegal activities on behalf of the employer.

If an employee believes they were unfairly fired, they should gather evidence and file a claim. A discrimination claim can be filed with either the Missouri Commission on Human Rights (MCHR) or the Equal Employment Opportunity Commission (EEOC). The two agencies have a “work-sharing agreement,” which means they cooperate to process claims.

For claims involving federal law violations, the employee should file with the EEOC. The filing deadline is generally 180 days from the termination date, but this is extended to 300 days if the MCHR enforces a law prohibiting discrimination on the same basis.

It’s important to note that the MCHR covers smaller employers that are not subject to federal law. If the workplace has between 6 and 14 employees, the employee should file with the MCHR, as the EEOC only covers employers with 15 or more employees. If the workplace has 15 or more employees, a claim can be filed with either agency.

Learn more about firing employees in Missouri by checking out our detailed guide.

Legal Protections During Termination in Missouri

Missouri has laws that protect employees from unfair treatment or discrimination when they are terminated. These laws establish standards for employers and give employees legal recourse.

• Missouri Human Rights Act: The Missouri Human Rights Act (MHRA) prevents employers from discriminating against employees based on race, color, religion, sex, national origin, ancestry, disability, or age. This includes protection from termination based on any of these characteristics.
• Missouri Whistleblower Protection Act: The Missouri Whistleblower Protection Act safeguards employees who report violations of laws, rules, or regulations to the proper authorities. It prohibits employers from retaliating against employees who engage in whistleblowing activities.
• Title VII of the Civil Rights Act of 1964: The federal Title VII of the Civil Rights Act prohibits employment discrimination on the basis of race, color, religion, sex, and national origin. It applies to employers with 15 or more employees and includes protections against discriminatory termination.
• Age Discrimination in Employment Act: The Age Discrimination in Employment Act (ADEA) prohibits employers from terminating employees based on age, specifically protecting those 40 years and older. This law applies to employers with 20 or more employees, including private employers, state and local governments, employment agencies, and labor organizations.
• Americans with Disabilities Act: The Americans with Disabilities Act (ADA) assures that employees with disabilities are not discriminated against in employment, including termination. It also requires employers to provide reasonable accommodations. This law applies to employers with 15 or more employees.
• Family and Medical Leave Act: The Family and Medical Leave Act (FMLA) protects eligible employees who take leave for family or medical reasons. Employers cannot terminate employees for taking FMLA leave and must restore them to their previous or equivalent position upon their return. This law applies to employers with 50 or more employees.
• Fair Labor Standards Act: The federal Fair Labor Standards Act (FLSA) defines minimum wage, overtime pay, and child labor standards. 
• Worker Adjustment and Retraining Notification Act: The Worker Adjustment and Retraining Notification (WARN) Act requires employers with 100 or more employees to provide 60 days’ notice in advance of mass layoffs or plant closures. Employers who fail to comply may be subject to fines and wages.

Terminated Employee Benefits in Missouri

When employees are terminated in Missouri, they may be entitled to certain benefits based on the circumstances of their dismissal.

• Unemployment Insurance: Terminated employees in Missouri may be eligible for unemployment benefits if they meet certain conditions, such as being terminated through no fault of their own. To receive benefits, employees must apply through the Missouri Division of Employment Security.
• Final Paycheck: Under Missouri law, when an employee is fired, the employer must pay all wages owed at the time of termination. If the employee sends a written request, the employer has seven days to pay. 
• COBRA Benefits: The Consolidated Omnibus Budget Reconciliation Act (COBRA) lets employees temporarily continue their health coverage after being terminated. In Missouri, the Missouri Consolidated Health Care Plan (MCHCP) handles COBRA coverage. Once MCHCP is notified, they send a letter explaining the employee’s right to choose COBRA. The employee has 60 days from the loss of coverage or notification, whichever is later, to decide. If they don’t elect COBRA in time, coverage ends. Employees who choose COBRA must pay the full cost of the premiums during the coverage period.

Layoffs in Missouri

Employers in Missouri may lay off employees to reduce their workforce due to economic challenges, restructuring, or other business-related reasons. Unlike firings, layoffs usually involve several employees at once. Missouri law requires employers to follow both state and federal guidelines during layoffs. 

The federal Worker Adjustment and Retraining Notification (WARN) Act requires employers planning a mass layoff or facility closure to provide a 60-day notice to affected workers. This helps employees prepare for the financial impact. The WARN Act applies to companies with 100 or more full-time employees. Employers are encouraged to give notice even when WARN does not apply.

Resignations in Missouri

Resignations in Missouri happen when an employee decides to end their employment, unlike terminations initiated by the employer. A voluntary resignation occurs when the employee leaves by choice, often for reasons such as career growth, personal matters, or dissatisfaction with the current role. In Missouri, unless there’s a contractual obligation, employees aren’t required to provide notice before resigning, though doing so is generally considered professional and courteous.

Legal Cases Related to Wrongful Termination in Missouri

1. Kansas City Agrees to $750,000 Settlement for Wrongful Termination Involving Discriminatory Practices

In the case, Mable Ramey-Moore v. Kansas City, Ramey-Moore, a Black woman, sued Kansas City for wrongful termination. She was Assistant Director of the Water Department and had a record of excellent performance evaluations. Despite this, she was removed from her position and later terminated. 

The department cited budget cuts as the reason for her dismissal, yet she was the only one fired, and job postings for her previous position appeared soon after her termination. Ramey-Moore filed a lawsuit alleging that her termination was due to discrimination based on her race, age, and sex. The case ended in a $750,000 settlement.

Key lessons learned from the case:

• Termination decisions based on race, age, or sex are violations of both state and federal discrimination laws.
• Employers cannot justify wrongful termination with false reasons, such as budget cuts while hiring for the same position.

2. Profile Cabinet and Design Settles for $60,000 Over Racial Discrimination and Wrongful Termination

In EEOC v. Profile Cabinet and Design, two African American employees, Brandon Fitzpatrick and Theopilis Bryant, were wrongfully terminated by their employer, Profile Cabinet and Design in Kansas City, Missouri. The company alleged that the two men falsified Bryant’s time card, leading to their dismissal. 

However, evidence revealed that a white employee was responsible for the time card falsification. The EEOC filed a lawsuit on behalf of the two men, claiming their termination was racially discriminatory. The case settled for $60,000.

Key lessons learned from the case:

• Employers cannot use false accusations to justify the termination of employees based on race.
• Wrongful termination due to racial discrimination can result in notable financial settlements and legal consequences for employers.

3. Akal Security Settles for $1.62 Million Over Pregnancy Discrimination and Wrongful Termination

In EEOC v. Akal Security, the U.S. Equal Employment Opportunity Commission (EEOC) sued Akal Security, the largest provider of contract security services to the federal government, for pregnancy discrimination. The lawsuit was based on complaints from 26 pregnant women working as security guards on U.S. Army bases. 

The women alleged that Akal Security forced them to take leave, prevented them from completing job certification tests, and eventually terminated them due to their pregnancies. Although the company denied any wrongdoing, they agreed to a $1.62 million settlement to resolve the discrimination and wrongful termination claims.

Key lessons learned from the case:

• Termination due to pregnancy is a clear violation of federal laws under the Pregnancy Discrimination Act.
• Employers must provide equal opportunities to pregnant employees and avoid forcing them out of the workforce based on outdated stereotypes.

Learn more about Missouri Labor Laws in our in-depth 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.