West Virginia Termination Laws

October 21st 2024

Employers in West Virginia must be well-versed with the federal and state regulations governing the termination process to ensure employees are treated fairly and avoid legal disputes.

This article covers the regulations surrounding voluntary and involuntary resignations, wrongful termination claims, and the legal protections in place under state and federal laws.

This Guide Covers

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

Legal Considerations for Termination in West Virginia

There are important exceptions and legal restrictions that both employers and employees in West Virginia must be aware of:

  • Discrimination: Under both federal and state laws, employers cannot terminate an employee based on protected characteristics such as race, color, religion, sex, national origin, disability, or age. Terminations that appear to be based on these factors could lead to discrimination claims.
  • Retaliation: Employers are prohibited from terminating employees in retaliation for engaging in protected activities. This includes reporting workplace discrimination, harassment, or safety violations, as well as participating in investigations or lawsuits related to these issues. West Virginia law also protects employees who file workers’ compensation claims or report illegal activities under whistleblower protections.
  • Employment Contracts: If an employee’s employment contract specifies the terms of termination, the employer must adhere to those terms. Violating a contract, such as dismissing an employee without following the procedures outlined in the agreement, can result in a breach of contract claim.
  • Notification Requirements: In cases of mass layoffs or plant closures, employers must comply with the Worker Adjustment and Retraining Notification (WARN) Act, which requires 60 days’ notice to affected employees. Failing to provide this notice can result in penalties, including compensation for lost wages and benefits.

At-Will Employment in West Virginia

What is At-Will Employment?

At-will employment is a legal doctrine that allows either the employer or the employee to terminate the employment relationship at any time, with or without cause, and without prior notice, as long as the termination does not violate the law.

West Virginia is an at-will state, meaning an employer can legally dismiss an employee for any reason that is not discriminatory, retaliatory, or violating any federal and state employment laws. Employees are equally able to leave their jobs anytime for any reason.

What are the Exceptions to At-Will Employment in West Virginia?

While at-will employment provides employers with significant flexibility in managing their workforce, there are several key exceptions that limit this doctrine in West Virginia:

  • Discrimination: Employers cannot terminate employees based on protected characteristics such as race, color, religion, national origin, sex, age (over 40), or disability, as outlined in both federal and state laws.
  • Retaliation: Employees are protected from termination if they engage in legally protected activities, such as reporting workplace discrimination, and safety violations, filing workers’ compensation claims, or participating in investigations related to these issues. Retaliatory termination is unlawful.
  • Public Policy Exception: West Virginia recognizes a public policy exception to at-will employment. This means that an employer cannot fire an employee if doing so violates a clear and well-established public policy. Examples include terminating an employee for refusing to engage in illegal activities, exercising a legal right (such as filing a workers’ compensation), or performing a public duty (like jury service).
  • Implied Contracts: Sometimes, an employer’s actions or statements, such as promises made in an employee handbook or verbal assurances, may create an implied contract. If an implied contract exists, an employer must follow the terms related to termination, such as requiring “just cause” for dismissal.

Employment Under Contract in West Virginia

An employment contract in West Virginia is a legally binding agreement between an employer and an employee that outlines the terms and conditions of employment. This contract typically outlines the job duties, compensation, benefits, company policies, disciplinary actions, and causes for termination. In addition, employment contracts often include restrictive clauses such as non-compete and non-disclosure agreements to protect the employer’s interests.

Employment contracts can be written or oral, though written contracts are generally preferred for enforceability. Oral agreements are enforceable but must be able to be completed within one year; otherwise, they must be in writing.

The types of employment contracts commonly used in West Virginia include:

  • Permanent employment agreements: Outlines fixed hours and compensation for employees with no set date
  • Non-disclosure agreements: Safeguard confidential information
  • Non-compete agreements: Prevent employees from working for competitors or starting a competing business.

Lawful Termination in West Virginia

Legal Grounds for Termination in West Virginia

Although West Virginia is considered at-will, there are specific legal grounds for termination that protect employees from wrongful dismissal. Here are key scenarios where termination is considered lawful:

  • Performance Issues: Employers can terminate employees for poor job performance, including consistent failure to meet job expectations, inadequate productivity, or violating company policies. Employers must ensure that performance issues are documented and communicated to the employee before termination.
  • Misconduct: Employees may be terminated for misconduct, including theft, harassment, substance abuse, or other behavior that violates company policies or the law. Employers should conduct a thorough investigation and maintain documentation of the misconduct to justify the termination.
  • Reductions in Force: Economic factors may lead to layoffs or workforce reductions. Employers can terminate employees for business reasons, such as budget cuts or restructuring, as long as the process is not discriminatory or retaliatory.
  • Job Abandonment: Employees who fail to report to work for a certain period without notifying their employer may be considered to have abandoned their jobs. Employers can establish clear policies regarding attendance and job abandonment to justify such terminations.

How Do I File a Wrongful Termination Claim in West Virginia?

Filing a wrongful termination claim in West Virginia starts with gathering evidence of the case, such as documentation of your termination, employment contract (if applicable), and any relevant communications. Employees should then determine if their termination violated state or federal employment laws.

If your wrongful termination claim involves discrimination and retaliation, submit it to the West Virginia Human Rights Commission (WVHRC) or the U.S. Equal Employment Opportunity Commission (EEOC). These agencies will investigate and may attempt to mediate with the employer.

If the mediation is unsuccessful, employees will receive a “Right to Sue” letter, allowing them to file a lawsuit in state or federal court.

Legal Protections During Termination in West Virginia

Legal protections in West Virginia are governed by federal and state laws, which help ensure employees are not wrongfully dismissed or discriminated against when losing their jobs. These legal protections include:

  • Title VII of the Civil Rights Act of 1964: The federal statute, Title VII of the Civil Rights Act of 1964, prohibits employers from firing workers on the grounds of their race, color, religion, sex, or national origin. It prohibits discriminatory hiring and firing practices and is applicable to employers with 15 or more workers.
  • Americans with Disabilities Act (ADA): The ADA is a federal law that prohibits termination of employees based on a disability if they are otherwise able to perform their job with or without reasonable accommodations. Employers must provide necessary adjustments to help employees fulfill their roles, and dismissing someone solely due to their disability could lead to legal repercussions.
  • Age Discrimination in Employment Act (ADEA): Employees who are 40 years or older are protected under the ADEA from termination based on their age. This law ensures that older workers are not unfairly dismissed in favor of younger employees and helps combat ageism in the workplace.
  • Family and Medical Leave Act (FMLA): The FMLA ensures employees cannot be fired for taking up 12 weeks of unpaid, job-protected leave for certain family or medical reasons. If an employer terminates an employee for exercising their FMLA rights, it constitutes wrongful termination.
  • Occupational Safety and Health Act (OSHA): Under the OSH Act, employees are protected from retaliation or termination for reporting unsafe working conditions or refusing to work in dangerous environments. Employers cannot legally fire employees for whistleblowing about health and safety violations, and employees who are wrongfully terminated can report the incident to OSHA for investigation.
  • West Virginia Human Rights Act: The West Virginia Human Rights Act is a state law that protects employees against termination based on race, religion, color, national origin, ancestry, sex, age (40+), blindness, or disability. Employers with 12 or more employees must comply with this law, and any discriminatory terminations can be reported to the WVHRC for investigation.
  • West Virginia Wage Payment and Collection Act: The West Virginia Wage Payment and Collection Act is a state law that mandates employers who discharge or terminate an employee or when an employee resigns or quits, the employer must pay the employee all wages earned up to the separation date or before the next regular payday. The same applies if the employee resigns or quits. As per WV Code §21-5-4, there are distinctions regarding fringe benefits (bonuses, health insurance, or retirement benefits) provided through an agreement. If due, these benefits are not required to be paid by the next regular payday if the agreement specifies a future date or certain conditions that must be met before they are paid. Instead, the employees are paid according to the terms outlined in the agreement.

Terminated Employee Benefits in West Virginia

Terminated employees in West Virginia may be entitled to various benefits depending on the circumstances surrounding their termination:

  • Unemployment Benefits: Employees who are terminated may qualify for unemployment compensation, provided they meet certain criteria set by the West Virginia Division of Unemployment Compensation. For employees to be eligible, they must have lost their job through no fault of their own (i.e., not due to misconduct) and must have worked a minimum amount of time in covered employment. Unemployment benefits provide temporary financial assistance while the individual searches for new employment.
  • Final Paychecks: Under the West Virginia Wage Payment and Collection Act, employers are required to pay terminated employees final wages, including any accrued vacation or paid time off, by the next regular payday following the termination.
  • Health Insurance Continuation: If the terminated employee was covered under their employer’s group health insurance plan, they may be eligible for continued coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA). This act allows employees and their dependents to maintain health insurance for up to 18 months after employment ends. Under COBRA, employees must pay the full premium, including any portion previously covered by the employer. In addition to federal COBRA, West Virginia has its own mini COBRA law, which applies to employers with two to 19 employees not covered by federal COBRA. The West Virginia Mini COBRA provides similar continuation coverage for eligible employees and their dependents up to 12 months after termination or loss of coverage. Employees must apply for this coverage within 60 days of their health insurance loss and are responsible for paying the full premium.
  • Severance Pay: Employers in West Virginia may provide severance pay as a part of their company policy or individual employment contracts, but it is not mandated by law. Severance packages, if they are available, might offer further financial assistance after termination.

Layoffs in West Virginia

The Worker Adjustment and Retraining Notification (WARN) Act is a vital federal law that mandates employers in West Virginia to provide advance notice of mass layoffs or plant closures. It applies to businesses with 100 or more employees and requires them to give at least 60 days written notice before a covered layoff or closure.

A mass layoff is defined as a reduction in the workforce affecting at least 50 employees or 33% of the workforce at a single site. In comparison, plant closure involves a facility’s permanent or temporary shutdown affecting 50 or more employees. The notice must be sent to affected employees, the state dislocated worker unit, and the local government, detailing the expected date and reasons for layoff.

Resignations in West Virginia

In West Virginia, resignations fall into two main categories:

Voluntary Resignations

A voluntary resignation occurs when an employee chooses to leave the job of their own choice. Although it is customary to offer at least two weeks’ notice to preserve professionalism, employees are not obligated by law to give notice before resigning. For public employees in West Virginia, W. Va. Code R. § 217-1-11 outlines that resigning employees must submit a written resignation to their agency.

When an employee voluntarily resigns, the employer is required by the West Virginia Wage Payment and Collection Act (WPCA) to pay any outstanding wages for work performed prior to resignation by the next scheduled payday.

Employees are also entitled to receive any accrued benefits, like paid vacation time if specified in their employment contract or company policies. However, fringe benefits that are not immediately payable (such as bonuses or deferred compensation) may be subject to different payment terms as per the employment agreement.

Involuntary Resignations

Involuntary resignations, also known as “constructive discharge,” occur when an employee is forced to resign due to employer pressure, intolerable working conditions, or as an alternative to being formally terminated.

In these cases, the resignation is not truly voluntary, and the employee may have grounds for legal action if they can demonstrate that the resignation was coerced or resulted from illegal workplace practices, such as discrimination or harassment.

Employees who resign involuntarily may still be eligible for unemployment benefits, depending on the circumstances of their resignation.

Legal Cases Related to Wrongful Termination in West Virginia

1. Construction Company Settles $87,205 for Retaliatory Discharge Over Racial Discrimination

In EEOC v. Mike Enyart & Sons, Inc., the EEOC filed a lawsuit against the South Point, Ohio-based construction company, Mike Enyart & Sons, Inc, alleging that the company subjected Mareo R. Allen, a black employee, to a racially hostile work environment.

While working on a sewer line project in White Sulphur Springs, West Virginia, Allen endured repeated racial slurs and offensive nicknames from a foreman and co-workers. The harassment escalated to physical intimidation, including an incident where Allen’s belt was cut with a knife while he was wearing it, and a swastika was spray-painted on company equipment.

The EEOC also claimed that after Allen complained about the racial harassment, the company retaliated against him by terminating his employment, violating Title VII of the Civil Rights Act of 1964, which prohibits race-based harassment and retaliation against employees who oppose such conduct.

The case resulted in an $87,205 settlement for Allen, including lost wages and punitive damages. In addition, Mike Enyart & Sons agreed to implement new anti-discrimination policies, provide training on Title VII, and establish procedures for handling future complaints. The company also offered to rehire Allen as a laborer for the first available position.

Key Lessons Learned from the Case:
  • Racial harassment and retaliation are serious violations of federal law, with both legal and financial consequences.
  • Employers must implement and enforce clear policies against workplace harassment and discrimination.
  • Employers are encouraged to provide proper training for supervisors and managers to prevent discriminatory practices and foster a respectful workplace environment.

2. Community Hospital Settles $12,500 in Wrongful Discharge Over Age and Disability Discrimination

In EEOC v. Weirton Medical Center, the EEOC filed a lawsuit against Weirton Medical Center, a community hospital in Weirton, West Virginia, alleging that it discriminated against Paul Ayers, a 48-year-old employee with a perceived back impairment.

Ayers, who had worked successfully as a linen technician at the hospital for over 24 years, applied for a multi-craftsman position but was not selected. During the interview process, the hospital’s maintenance director commented that Ayers was passed over for the position due to his age and perceived disability, stating he “wanted someone younger and more energetic.”

The EEOC charged that this conduct violated the Age Discrimination in Employment Act (ADEA) and the Americans with Disabilities Act (ADA), which prohibit discrimination based on age and disability. The lawsuit was filed after attempts to resolve the matter through conciliation failed.

Following the filing, Weirton Medical Center voluntarily hired Ayers into the multi-craftsman assistant position and compensated him for lost wages. The settlement also included a $12,500 monetary award and required the hospital to conduct audits of 25% of its hiring decisions, ensuring compliance with the ADEA, ADA, and its anti-discrimination policies. In addition, the hospital agreed to provide management with training on these laws.

Key Lessons Learned from the Case:
  • Age and disability discrimination are violations of federal law, and employers can face legal and financial consequences.
  • Clear and consistent hiring policies, free of discriminatory practices, are crucial in maintaining compliance with the ADA and ADEA.
  • Employers are encouraged to implement audits and training programs to prevent future instances of discrimination and promote equitable hiring practices.

Learn more about West Virginia 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.