Oklahoma Termination Laws

Termination in Oklahoma comes with specific legal guidelines that both employers and employees need to be aware of. Oklahoma termination laws outline what’s acceptable when it comes to ending an employment relationship, whether it’s for performance issues or other reasons.

This guide will walk you through the essentials—from understanding legal grounds for termination to dealing with wrongful termination claims, ensuring that the process stays within the bounds of the law.

This Guide Covers

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

Legal Considerations for Termination in Oklahoma

Employers in Oklahoma must follow specific legal guidelines when terminating an employee to avoid potential legal issues. Here are the key considerations:

  • Employment Contracts: Review any employment contracts or collective bargaining agreements before termination to ensure compliance with agreed-upon terms. Employers must follow the conditions set in these contracts to avoid breaching them.
  • Anti-Discrimination Laws: Termination decisions must not be based on race, color, religion, sex, national origin, age, disability, or genetic information. Discriminating against an employee based on any of these factors could lead to legal consequences under both federal and state anti-discrimination laws, such as the Oklahoma Anti-Discrimination Act.
  • Retaliation Protections: Employers are prohibited from firing employees for participating in legally protected activities. This includes filing discrimination claims, reporting workplace violations, or participating in workplace investigations. Retaliatory terminations are illegal and could result in lawsuits.
  • Final Pay and Benefits: Under Oklahoma law, terminated employees must receive their final wages, including any accrued vacation or paid time off, by the next payday or within 10 days if no payday is scheduled. Employers must also follow federal COBRA requirements to allow employees to continue their health benefits after termination.
  • Notification Requirements: Oklahoma doesn’t require advance notice of termination unless stipulated in employment contracts or under specific circumstances, such as mass layoffs, which may require advance notice under the federal Worker Adjustment and Retraining Notification Act.
  • Documentation and Recordkeeping: Employers should thoroughly document the termination process, including reasons for dismissal, performance evaluations, and disciplinary actions. Proper recordkeeping is important to defend against legal claims and demonstrate that the termination was for legitimate reasons.
  • Medical Marijuana Law: The Oklahoma Medical Marijuana Use and Patient Protection Act protects employees with valid medical marijuana licenses from being fired solely for their marijuana status or for a positive marijuana test unless the employee is in a safety-sensitive position or under the influence at work.

At-Will Employment in Oklahoma

What is At-Will Employment?

At-will employment allows both the employer and employee to terminate the work relationship at any time, with or without notice. In Oklahoma, this means that either party can end employment for almost any reason, as long as it’s not an illegal reason, such as discrimination or retaliation. Unless a specific contract states otherwise, there are no long-term obligations under this employment model. 

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

Although Oklahoma follows the at-will employment doctrine, there are exceptions that protect employees from wrongful termination:

  • Public Policy Exception: Employers in Oklahoma cannot fire employees for reasons that violate established public policy. This includes terminating an employee for refusing to participate in illegal activities, reporting violations of the law, or exercising certain legal rights. Terminations under such circumstances could result in wrongful termination claims.
  • Implied Contract Exception: Oklahoma recognizes the implied contract exception to at-will employment. This applies when an employer’s actions, statements, or company policies suggest job security or alternative termination procedures. For example, if an employee is delegated significant responsibilities indicating future promotion and is then suddenly terminated, they might have grounds for a wrongful termination claim. Similarly, if a company’s employee handbook lists specific termination reasons and the employer fires an employee for an unlisted reason, this may also be considered wrongful termination.

Employment Under Contract in Oklahoma

An employment contract is a legally binding agreement between an employer and an employee that details the terms and conditions of employment. These contracts cover key aspects such as job duties, salary, benefits, and grounds for termination. While Oklahoma is an at-will employment state, meaning either party can end the employment relationship at any time for any reason, a valid employment contract can override this principle by placing restrictions on termination or resignation.

Employment contracts in Oklahoma can be written or verbal, but to be enforceable, they must comply with state laws and should ideally be in writing. Contracts must not contradict public policy, such as discriminating against employees or penalizing them for protected activities like serving on a jury.

Non-compete agreements are generally not enforceable in Oklahoma, as the state has specific laws that limit such restrictions. These contracts must also align with the Statute of Frauds, which mandates that contracts taking more than a year to complete must be in writing to be enforceable.

Lawful Termination in Oklahoma

Legal Grounds for Termination in Oklahoma

Employers in Oklahoma must comply with state and federal laws when terminating an employee to avoid potential legal claims. There are several valid legal grounds for termination, including:

  • Performance Issues: Employers can lawfully terminate employees who fail to meet job expectations, such as poor work quality, not achieving goals, or consistently missing deadlines. Documenting performance concerns and offering feedback before termination can help avoid disputes.
  • Misconduct: Termination can occur if employees engage in misconduct connected to their work. Misconduct includes intentional acts or omissions that constitute a material breach of job duties or responsibilities, excessive absenteeism or tardiness, dishonesty, violation of laws, or violations of company policies or rules. Employers bear the burden of proving misconduct with evidence such as signed affidavits. Once proven, the burden shifts to the employee to dispute the facts. Prior warnings may not be required if the employee knew or should have known their actions violated rules.
  • Business Necessity: Layoffs due to economic downturns, restructuring, or operational changes are considered lawful in Oklahoma. This type of termination is not related to employee performance but rather driven by the employer’s need to adjust workforce size for financial or operational reasons.

Explore our complete guide to firing employees in Oklahoma for further information.

How Do I File a Wrongful Termination Claim in Oklahoma?

To file a wrongful termination claim in Oklahoma, employees should gather all relevant documents, such as employment contracts, performance reviews, and communications that support the claim. If the case involves discrimination or retaliation, the claim can be submitted to either the Oklahoma Office of Civil Rights Enforcement (OCRE) or the Equal Employment Opportunity Commission (EEOC).

The filing deadline for the OCRE is 180 days from the date of termination, while the EEOC allows up to 300 days. Employees must detail any violations of discrimination laws or evidence of retaliation in their claims. The agency will review the allegations, and if the claim isn’t resolved within 180 days or if a “right to sue” letter is issued, employees can pursue legal action in court.

Legal Protections During Termination in Oklahoma

State and federal laws provide protections for employees during the termination process. Main protections for Oklahoma employees include: 

  • Oklahoma Anti-Discrimination Act: The Oklahoma Anti-Discrimination Act prohibits employers from terminating employees based on protected characteristics such as race, color, religion, sex, national origin, age, disability, or genetic information. This law ensures that employees are treated fairly and cannot be dismissed on discriminatory grounds. Under the Oklahoma Anti-Discrimination Act (OADA), employees are protected from discriminatory termination.
  • Oklahoma Workers’ Compensation Act: Employers are prohibited from firing employees in retaliation for filing workers’ compensation claims under the Oklahoma Workers’ Compensation Act. This state law ensures that employees injured on the job can pursue their legal right to compensation without fear of losing their employment. The Oklahoma Workers’ Compensation Act also protects workers asserting their rights in compensation cases.
  • Oklahoma Wage Payment Act: The Oklahoma Wage Payment Act requires employers to provide terminated employees with their final paycheck, including accrued vacation or PTO, by the next scheduled payday or within 10 days if no payday is scheduled. This law ensures timely payment of wages owed. The Oklahoma Wage Payment Act outlines these requirements to protect employees’ final compensation after termination.
  • Oklahoma Retaliation Protections: The Oklahoma Retaliation Protections law prohibits employers from retaliating against employees who report workplace violations or participate in investigations. Employers cannot dismiss employees in retaliation for exercising their legal rights. This state law, along with federal protections, safeguards employees from punitive actions when they raise concerns about unlawful practices.
  • Title VII of the Civil Rights Act of 1964: Title VII of the Civil Rights Act protects employees from being fired based on race, color, religion, sex, or national origin. This federal law ensures equal employment opportunities and prohibits discriminatory termination. The Civil Rights Act of 1964 (Title VII) offers broad protection across all employment decisions, including firing.
  • Age Discrimination in Employment Act: The Age Discrimination in Employment Act  (ADEA) protects employees aged 40 and older from termination based solely on age. This federal law ensures that older workers cannot be dismissed due to age-related bias. Under the ADEA, employers must avoid age-based discrimination in termination decisions.
  • Americans with Disabilities Act: The Americans with Disabilities Act (ADA) protects employees with disabilities from discriminatory termination. Employers must provide reasonable accommodations to qualified employees with disabilities and cannot fire them because of their disability status. The ADA ensures that workers with disabilities can remain employed if they can perform their job duties with or without accommodations.
  • Family and Medical Leave Act: The Family and Medical Leave Act (FMLA) provides employees with job-protected leave for specific family and medical reasons. Employers cannot terminate employees for taking FMLA leave. The FMLA ensures employees can take leave without losing their jobs for family or medical emergencies.
  • Uniformed Services Employment and Reemployment Rights Act: The Uniformed Services Employment and Reemployment Rights Act (USERRA) protects employees serving in the military from termination based on their military service. Employers cannot fire employees due to their service obligations, ensuring job security for service members. The USERRA offers protection for individuals called to active military duty.
  • Medical Marijuana Law: The Oklahoma Medical Marijuana Use and Patient Protection Act safeguards employees with valid medical marijuana licenses from being terminated solely due to their marijuana status or a positive marijuana test. However, exceptions apply for safety-sensitive positions or instances where the employee is under the influence while performing job duties.

Terminated Employee Benefits in Oklahoma

Oklahoma employees who face termination have certain rights and benefits designed to provide support during the transition:

  • Final Paycheck: Once terminated, Oklahoma employees are entitled to receive their final paycheck, which includes any unpaid wages and accrued vacation or PTO. Employers must issue this payment by the next regular payday or within 10 days if there is no regular payday.
  • COBRA Health Insurance Continuation: Employees with employer-sponsored health insurance can continue their coverage through the Consolidated Omnibus Budget Reconciliation Act (COBRA). This federal law allows individuals to maintain their health benefits after a job loss, though they must cover the full premium. Employers must provide employees with COBRA information, including eligibility, costs, and deadlines for opting into coverage.
  • Unemployment Benefits: Terminated employees in Oklahoma can apply for unemployment benefits if they meet the required criteria. This includes working for a covered employer, earning enough wages, and actively seeking new employment. Benefits are distributed through the Oklahoma Employment Security Commission (OESC) and provide temporary financial relief during the job search process.

Layoffs in Oklahoma

Layoffs in Oklahoma occur when businesses reduce their workforce due to economic downturns, restructuring, or other financial challenges. These decisions are usually unrelated to employee performance but stem from broader organizational or financial needs.

Employers in Oklahoma must comply with the federal Worker Adjustment and Retraining Notification (WARN) Act. This act requires employers with 100 or more employees to provide a 60-day notice before conducting mass layoffs or plant closures affecting 50 or more workers. Failure to provide proper notice can result in penalties and compensation for affected workers.

Laid-off employees in Oklahoma may qualify for unemployment benefits through the Oklahoma Employment Security Commission (OESC). Additionally, the state offers Rapid Response services, which provide resources to employees impacted by layoffs. These services include job search assistance, training opportunities, and reemployment workshops to help affected workers transition to new roles.

Resignations in Oklahoma

Employees in Oklahoma can choose to resign from their jobs for various reasons, such as pursuing new career opportunities, further education, or personal matters. While state law doesn’t mandate a required notice period, most employers expect employees to give notice, especially when outlined in company policies or contracts.

Voluntary Resignations

When employees voluntarily resign, they can do so at any time. Verbal resignations are legally acceptable if the employee’s intent to leave is clear. Employers typically handle the administrative tasks that follow, such as conducting exit interviews and processing final paychecks or benefits.

Involuntary Resignations

If work conditions become unbearable, forcing an employee to resign, it may be considered a constructive discharge. In Oklahoma, employers who create such conditions could be held responsible for wrongful termination if proven that the resignation was a direct result of those conditions.

Legal Cases Related to Wrongful Termination in Oklahoma

1. Oklahoma Governor Settles Wrongful Termination Lawsuit for $125,000

In the case Wendy Gregory v. State of Oklahoma and Governor Mary Fallin, Wendy Gregory, who served as the director of the governor’s office in Tulsa, claimed she was wrongfully terminated after the Internal Revenue Service (IRS) sought to garnish her wages. 

The IRS is the federal agency responsible for tax collection and enforcement of tax laws in the United States. Gregory’s wages were garnished due to a child support dispute involving her husband. Although the IRS later withdrew its action, Gregory alleged that Governor Fallin’s office fired her to avoid any negative publicity surrounding the situation.

Gregory filed a wrongful termination lawsuit, arguing that her dismissal violated federal protections against being terminated over wage garnishments. After ongoing litigation, the case was settled, with the State of Oklahoma agreeing to pay Gregory $125,000. Additionally, the settlement resolved a related lawsuit regarding access to Gregory’s personnel files.

Key lessons learned from the case:

  • Termination must follow lawful procedures. Employers must ensure that any dismissal is based on performance or company needs, not personal circumstances, to avoid wrongful termination claims.
  • Personal matters unrelated to work should not influence termination decisions. This case shows that using an employee’s private issues, like IRS involvement, as a reason for termination can result in legal consequences.

2. Voss Electric Company Settles $91,000 in Wrongful Termination Lawsuit

The U.S. Equal Employment Opportunity Commission (EEOC) reached a $91,250 settlement with Voss Electric Company in a wrongful termination lawsuit. The EEOC alleged that Voss violated the Americans with Disabilities Act (ADA) by terminating an Oklahoma-based employee with bipolar disorder after he required in-patient medical care. Instead of providing additional medical leave recommended by his physicians, Voss fired the employee by taping a termination letter to his door.

After unsuccessful mediation efforts, the EEOC v. Voss Electric Company lawsuit proceeded. The court rejected Voss’s motion to dismiss, finding sufficient evidence that the employee’s bipolar disorder affected major life activities such as communication and self-care. While the case moved toward trial, both parties reached a settlement that included financial compensation and mandated ADA training for Voss employees.

Key lessons learned from the case:

  • Firing an employee during recovery from a psychiatric disability without exploring alternatives, such as medical leave, can be viewed as a violation of the Americans with Disabilities Act (ADA).
  • Companies should implement thorough ADA training for all staff to prevent mishandling disability-related issues, as poor management of such situations may lead to lawsuits and costly settlements.

Discover everything you need to know about Oklahoma labor laws by checking out our comprehensive 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.