Washington Termination Laws

October 2nd 2024

Washington termination laws govern the rights and responsibilities of both employers and employees when an employment relationship ends. These laws ensure that terminations are handled fairly and comply with state and federal regulations.

This article provides an overview of the key termination laws in Washington. Understanding these rules can help employers and employees navigate the termination process in Washington more effectively.

This Guide Covers

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

Legal Considerations for Termination in Washington

Termination in Washington is surrounded by specific legal considerations that employers and employees should understand. These considerations include:

  • Discrimination: Employers cannot terminate an employee based on protected characteristics such as race, gender, religion, age, disability, or national origin. Discriminatory terminations are prohibited under both federal and state laws.
  • Retaliation: It is illegal for employers to fire an employee in retaliation for exercising their legal rights, such as filing a complaint about workplace safety, reporting discrimination, or participating in an investigation.
  • Notice Requirement: Washington law does not require employers to provide notice before terminating an employee unless it is stipulated in an employment contract or agreement.
  • Severance Pay Agreement: There is no legal requirement for severance pay in Washington. However, if a severance agreement is outlined in the employment contract or company policy, it must be honored.
  • Final Paycheck: According to state regulations, employers must provide the final paycheck by the next scheduled payday. If requested, it must be delivered sooner.
  • Unemployment Benefits: Terminated employees may be eligible for unemployment benefits unless fired for misconduct. The Washington State Employment Security Department determines eligibility.
  • Documentation: Employers should maintain thorough documentation of the reasons for termination to protect against potential legal claims and to ensure compliance with legal requirements.

At-Will Employment in Washington

What is At-Will Employment?

At-will employment means that an employer or employee can terminate the employment relationship at any time for any reason, or no reason at all, without needing to give notice. Washington follows the at-will employment doctrine, which provides employers significant flexibility in managing their workforce. However, employees are also free to leave their jobs without repercussions.

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

While at-will employment is the default rule, there are several important exceptions in Washington:

  • Public Policy Exception: Employers cannot fire an employee if it violates established public policy. For example, it would be illegal to terminate an employee for reasons such as refusing to participate in illegal activities, reporting safety violations or whistleblowing, or exercising legal rights.
  • Implied Contract Exception: If there is an implied contract between the employer and employee, the at-will nature of employment can be overridden. For example, an employer’s handbook may outline job security, creating an implied contract, meaning the employee cannot be fired without cause.
  • Covenant of Good Faith and Fair Dealing: Washington courts may consider whether an employer has acted in bad faith or unfairly when terminating an employee. This is less commonly used but can be a basis for an exception in certain cases.
  • Anti-Discrimination Laws: Under federal and state laws, employers cannot fire employees for discriminatory reasons. Anti-discrimination laws prohibit termination based on factors such as race, color, national origin, gender, sexual orientation, age, disability, religion, or pregnancy status.
  • Retaliation Protections: Employees are also protected from being fired in retaliation for engaging in legally protected activities, such as filing a complaint or lawsuit against the employer, reporting workplace harassment or safety violations, and taking leave under the Family and Medical Leave Act (FMLA).

Employment Under Contract in Washington

Employment under contract in Washington refers to a formal agreement between an employer and employee that outlines specific terms and conditions of the employment relationship. Unlike at-will employment, where either party can end the employment at any time, a contract typically limits how and when the employment can be terminated. These contracts are typically written and specify the duration of employment, salary, benefits, job duties, and other obligations.

Lawful Termination in Washington

Legal Grounds for Termination in Washington

In Washington, employment is generally at-will, meaning employers can terminate for almost any reason as long as it does not violate specific legal protections. Here are the primary legal grounds for termination:

  • Performance Issues: Employers are legally permitted to terminate employees for failing to meet performance standards or job expectations. Performance issues must be documented to avoid disputes about the legitimacy of the termination.
  • Misconduct: Employees can be terminated for misconduct, including violations of company policies, unethical behavior, or criminal activity. Clear evidence and documentation of the misconduct are important to support the legality of the termination.
  • Attendance Issues: Frequent absenteeism or tardiness not protected by law (such as leave under FMLA) can be grounds for termination. Employers must ensure that attendance policies are consistently applied.
  • Business Necessity: Economic downturns, company restructuring, or the elimination of a position can justify terminations based on business necessity. Employers should document the reasons for the decision and ensure it aligns with company policies and practices.
  • End of Employment Contract: If an employee’s term of employment is based on an expired contract, termination at the end of the contract period is generally lawful. This includes fixed-term contracts or seasonal positions.
  • Employee Conduct: Termination may occur due to employee behavior that affects the workplace, such as harassment, insubordination, or creating a hostile work environment. Documenting incidents and following established disciplinary procedures can support a lawful termination.

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

How Do I File a Wrongful Termination Claim in Washington?

Employees who believe they have been wrongfully terminated in Washington can file a complaint with the Washington State Human Rights Commission (WSHRC) within six months, or with the Equal Employment Opportunity Commission (EEOC) within 300 days for federal claims. For wage or retaliation claims, employees may contact the Washington State Department of Labor & Industries.

Employees are advised to document the circumstances of the termination, including any relevant communications, performance reviews, or evidence that supports the employee’s claim.

Legal Protections During Termination in Washington

Both state and federal laws provide protections for employees facing termination. These laws include:

  • Title VII of the Civil Rights Act of 1964: Title VII of the Civil Rights Act of 1964 prohibits termination based on race, color, national origin, religion, or sex, including pregnancy, sexual orientation, and gender identity. Employers cannot use these protected characteristics as reasons for firing employees.
  • Americans with Disabilities Act (ADA): The ADA protects employees with disabilities from termination based on their disability. Employers must provide reasonable accommodations to disabled employees and cannot fire them for requesting accommodations unless it imposes undue hardship on the employer. Termination based on an employee’s disability may result in legal action under the ADA.
  • Age Discrimination in Employment Act (ADEA): The ADEA safeguards employees aged 40 and older from termination based on age. Employers are prohibited from using age as a reason for firing, demoting, or reducing the hours of older workers. Employees who believe they were terminated due to age can pursue legal action under the ADEA.
  • Family and Medical Leave Act (FMLA): The FMLA provides eligible employees with up to 12 weeks of unpaid, job-protected leave for medical or family-related reasons. Employers cannot terminate employees for taking or requesting FMLA leave, and any attempt to fire an employee for taking leave under the FMLA can result in legal consequences.
  • Occupational Safety and Health Act (OSHA): The OSH Act protects employees from termination for reporting unsafe working conditions or refusing to work in hazardous environments. Retaliation, including termination, against employees who raise safety concerns is prohibited under OSHA. Employees who face retaliatory termination can file a complaint with the Occupational Safety and Health Administration for reinstatement or damages.
  • Washington Law Against Discrimination (WLAD): The Washington Law Against Discrimination (RCW Chapter 49.60) prohibits termination based on race, color, national origin, sex, gender identity, sexual orientation, disability, age (40+), marital status, or military status. It extends discrimination protections beyond federal law, covering more categories. Employees wrongfully terminated for discriminatory reasons can file complaints with the Washington State Human Rights Commission.
  • Washington Paid Family and Leave Act (PFML): The Washington Paid Family and Leave Act provides eligible employees with up to 12 weeks of paid leave for family or medical reasons and job protection during their leave. Employers cannot terminate employees for taking leave under this program. Terminating an employee on PFML leave can result in legal claims for wrongful termination and violations of state law.
  • Washington Minimum Wage Act: The Washington Minimum Wage Act protects employees from termination related to wage disputes or violations of minimum wage laws. Employers must pay employees at least the state-mandated minimum wage, which can result in legal claims. Employees who are terminated for complaining about unpaid wages or asserting their rights under the state’s Minimum Wage Act may have grounds for a wrongful termination claim.

Terminated Employee Benefits in Washington

When an employee is terminated in Washington, there are several benefits and entitlements that they may be eligible for:

  • Final Paycheck: Washington law requires that terminated employees receive their final paycheck on the next regular payday. This paycheck should include all earned wages, unused vacation pay, and any other compensation owed.
  • Unemployment Benefits: Employees who lose their jobs without fault may be eligible for unemployment benefits. Eligibility depends on several factors, including the reason for termination and meeting certain work and wage requirements. You should file a claim with the Washington State Employment Security Department to apply.
  • Health Insurance Continuation: When employees in Washington lose their jobs or experience reduced work hours that impact their health insurance, they may be eligible for health insurance continuation programs under federal and state COBRA. The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) applies to companies with 20 or more employees to continue their health insurance coverage for up to 18 months by paying the full premium plus a 2% administrative fee. The Washington Mini-COBRA applies to smaller employers with fewer than 20 employees and provides up to three months of continued coverage under similar terms.
  • Severance Pay Agreement: Washington does not require employers to provide severance pay unless stipulated in an employment contract or company policy. If severance pay is provided, it should be outlined in your employment agreement or company handbook.

Layoffs in Washington

When layoffs occur in Washington, the federal Worker Adjustment and Retraining Notification (WARN) Act applies, providing workers with advance notice and protections in certain situations.

The federal WARN Act applies to businesses with 100 or more full-time employees. The employer must give a 60-day advance notice to employees when planning:

  • Mass layoff: This is defined as laying off 50 or more employees at a single worksite if that represents at least one-third of the workforce or if it involves 500 or more employees, regardless of percentage.
  • Plant closing: A shutdown of a facility or site that results in job losses for 50 or more full-time employees during a 30-day period.

However, employers may not provide the full 60-day notice in certain circumstances, such as during an unforeseeable business downturn, natural disasters, or faltering company exception.

Employees affected by layoffs in Washington can seek assistance from the Washington State Employment Security Department (ESD). The department offers support through rapid response services, which include retraining programs, job search assistance, and other resources.

If an employer fails to provide the required notice:

  • They may be required to pay back wages and benefits for up to 60 days to affected employees.
  • They may face civil penalties of up to $500 per day for each day of violation.

Resignations in Washington

Resignations in Washington can be categorized as voluntary and involuntary.

Voluntary Resignations

Voluntary resignations occur when an employee leaves their job on their own accord. In Washington, employees are not generally required to give notice before resigning unless specified in an employment contract. However, providing two weeks’ notice is a common practice and is often appreciated by employers. This notice period allows for a smoother transition and gives the employer time to find a replacement. While there is no legal obligation to provide notice, failure may affect the employee’s eligibility for rehire or any benefits tied to the resignation.

Involuntary Resignations

Involuntary resignations, sometimes called constructive discharge, are situations in which an employee is forced to resign due to employer actions or conditions. In such cases, resignation is treated similarly to a termination. Involuntary resignations can raise legal concerns, especially if the employee believes they were coerced or if the resignation resulted from unlawful practices such as discrimination or retaliation.

Employees who resign involuntarily due to constructive discharge or other valid reasons may be eligible for unemployment benefits.

Legal Cases Related to Wrongful Termination in Washington

1. Government Agency in Seattle Reaches $8 Million Settlement Over Retaliatory Firings

In the case of Port of Seattle v. Deanna Zachrisson and Elaine Lincoln, two former employees who worked in Port of Seattle, a municipal corporation that oversees Seattle’s airport and port, were wrongfully terminated in 2015. The two women opposed lease concessions for certain minority-owned businesses, which they claimed were connected to a former Port commissioner, John Creighton, and his political supporters. The Port justified the firings by citing inappropriate emails between the employees, allegedly violating the Port’s code of conduct.

Zachrisson and Lincoln filed a lawsuit in 2016, arguing that their dismissals were retaliatory rather than due to any genuine misconduct. The case led to a jury trial, where the Port of Seattle faced potential damages of $16.1 million. However, just before the jury could make this award, the Port agreed to settle the case for $8 million, marking the largest settlement in the Port’s history for an employment case.

Key Lessons Learned from the Case:
  • Terminating employees who have raised concerns about company practices, especially those involving ethics or legal compliance, can lead to allegations of retaliation. Employers must ensure that termination decisions are well-documented and based on legitimate, non-retaliatory reasons.
  • Before terminating employees, especially in sensitive situations, it is essential to conduct thorough investigations and give the employees a chance to respond to any allegations. In this case, the jury questioned whether the termination was due to potential bias and insufficient evidence of misconduct.
  • Ensuring transparency and fairness in the termination process is essential to avoid perceptions of bias or unfair treatment. Employers should be clear about the reasons for termination and follow consistent procedures to mitigate the risk of legal challenges.

2. Electronic Retail Store Pays $2.3 Million in Sexual Harassment and Retaliation Claims

In the case of EEOC v. Fry’s Electronics, America Rios, a 20-year-old employee at Fry’s Electronics in Renton, Washington, experienced ongoing sexual harassment from the store’s assistant manager. The harassment included inappropriate text messages, invitations to his home, and offers of alcohol. After Rios reported the harassment to her supervisor, Ka Lam, Lam escalated the complaint to Fry’s upper management. However, the investigation was compromised, leading to Lam’s termination shortly after he raised the complaint.

The EEOC filed a lawsuit against Fry’s, alleging both sexual harassment and retaliation for reporting the misconduct. The case uncovered severe lapses in Fry’s handling of the investigation, including the destruction of evidence and delays in revealing important information. Fry faced significant penalties, including $100,000 in court-ordered sanctions for discovery abuses. Fry settled the case for $2.3 million, with $1.56 million awarded to Lam and $736,000 to Rios.

Key Lessons Learned from the Case:
  • Employers have the responsibility to protect their employees from harassment and ensure they can report issues without fear of retaliation. Retaliatory actions can lead to severe legal and financial consequences.
  • Employers must preserve all relevant evidence during litigation. Destroying or withholding proof can result in substantial penalties and damage the company’s reputation.

3. Aluminum Producer Settles $175,000 and Reinstates Job Offer in Disability Discrimination Lawsuit

In the case of EEOC v. Kaiser Aluminum Washington, LLC, Donald McMurray, a seasoned construction worker, had his job offer revoked by Kaiser Aluminum after the company reviewed his medical records, which revealed a workplace injury from over a decade ago. Despite McMurray’s qualifications and ability to meet the job’s physical demands, Kaiser withdrew the offer, prompting the U.S. Equal Employment Opportunity Commission (EEOC) to file a lawsuit, alleging disability discrimination and a violation of the Americans with Disabilities Act (ADA).

The case was settled with Kaiser agreeing to pay $175,000 in damages and reinstate McMurray’s job offer. The settlement also included Kaiser’s commitment to implement new hiring procedures to ensure compliance with ADA regulations.

Key Lessons Learned from this Case:
  • The ADA prohibits discrimination based on a record of a prior disability, requiring employers to focus on an employee’s ability to perform job duties at present.
  • Employers should implement transparent and fair hiring procedures to prevent legal disputes and ensure compliance with anti-discrimination laws.

Learn more about Washington 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.

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