Wyoming Termination Laws

Wyoming termination laws outline the legal framework that governs the rights and responsibilities of both employers and employees when employment ends. As an at-will employment state, Wyoming allows employers to terminate workers without cause, but federal and state regulations impose important limits to prevent wrongful termination, discrimination, and retaliation.

This article offers a comprehensive overview of Wyoming’s termination laws, detailing employee rights, employer obligations, and key legal protections to ensure fair and lawful treatment during the termination process.

This Guide Covers

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

Legal Considerations for Termination in Wyoming

Termination in Wyoming involves several key legal factors that both employers and employees need to be aware of, these include:

  • Discrimination Laws: Employers must comply with federal and state anti-discrimination laws, prohibiting termination based on race, color, religion, sex, national origin, age, disability, or genetic information. Employees who believe they have been wrongfully terminated based on these characteristics may file complaints with the Equal Employment Opportunity Commission (EEOC) or the Wyoming Department of Workforce Services.
  • Retaliation Protections: Wyoming law protects employees from employer retaliation for exercising their legal rights, such as filing a complaint about workplace discrimination, reporting safety violations, or participating in an investigation. If an employee is terminated shortly after engaging in such protected activities, it may be considered retaliatory discharge.
  • Contractual Obligations: If an employee is under an employment contract or is covered by a collective bargaining agreement, the terms of the contract may govern the termination process. Employers must adhere to the conditions outlined in the contract to avoid potential legal issues.
  • Final Paycheck: According to Wyoming law, fired employees must receive their last paycheck by the following regularly scheduled payment. Employers must ensure that the final payment includes all earnings due, including any accumulated paid time off or vacation.

At-Will Employment in Wyoming

What is At-Will Employment?

At-will employment is a legal doctrine that permits employers and employees to end an employment relationship for any reason, at any time, or for no reason at all. This implies that an employee can resign without notice, and an employer can dismiss an employee without providing a cause or justification. However, employment termination should be lawful, meaning it should not be illegal, discriminatory, or retaliatory.

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

While at-will employment is primarily followed in Wyoming, there are several exceptions:

  • Public Policy Exception: An employer cannot terminate an employee for reasons that violate public policy, such as firing an employee for reporting illegal activities (whistleblowing) or refusing to engage in illegal acts.
  • Implied Contract Exception: If an employer’s policies, practices, or statements can create an implied contract suggesting that an employee will only be terminated for just cause, this may override the at-will presumption. For example, an employee handbook that outlines a disciplinary process may imply that the employee cannot be terminated without going through that process.
  • Covenant of Good Faith and Fair Dealing: The covenant of good faith and fair dealing is an implied legal principle that requires employers to act honestly and fairly in their employment practices, particularly when terminating an employee. While not universally recognized in all states, this exception holds that employers must have a “just cause” for not firing an employee, which should not be based on dishonest and selfish motives. An example of this covenant can occur when an employer fabricates reasons for termination, such as wanting to replace an employee with cheaper labor or to avoid providing entitled benefits.

Employment Under Contract in Wyoming

Employment under contract in Wyoming occurs when there is a formal agreement between the employer and the employee outlining the terms of employment. These contracts can specify various conditions, such as job responsibilities, duration of employment, compensation, and grounds for termination. In Wyoming, there are different types of employment contracts, including:

  • Permanent Employment Agreement: This type of contract does not have a specified end date and generally implies ongoing employment, subject to termination based on the agreed-upon terms or just cause.
  • Fixed-Term Employment Agreement: This contract outlines employment for a specific period. It automatically ends when the term is fulfilled, and the employee is typically entitled to certain rights and benefits during that time.

Additionally, it is common for employment contracts to include a non-compete clause. A non-compete agreement prevents a departing employee from working for rival companies or launching a competing venture for a specified duration within a defined geographic area.

Employees covered by a contract have certain legal protections and rights that may not apply to at-will employees. If an employer terminates a contracted employee without adhering to the terms of the contract, the employee may have grounds for a wrongful termination claim.

Lawful Termination in Wyoming

Legal Grounds for Termination in Wyoming

In Wyoming, termination of employment is generally legal under the at-will doctrine, provided it does not violate specific laws or rights. Legal grounds for termination may include:

  • Job Performance:  If an employee performs poorly on a regular basis, does not live up to expectations, and does not fulfill the responsibilities outlined in their role.
  • Misconduct: Termination is legal for actions such as theft, harassment, or other forms of employee misbehavior.
  • Economic Reasons: Employers may lay off employees due to economic downturns, restructuring, or downsizing.
  • Policy Violations: Employees who violate workplace regulations or policies, as outlined in the employee handbook, may face termination.

Read our complete guide to firing employees in Wyoming for further information.

How Do I File a Wrongful Termination Claim in Wyoming?

To file a wrongful termination claim in Wyoming, an employee should first gather evidence supporting their case. This may include documentation such as performance reviews, emails, and any relevant correspondence with the employer. The employee should also review company policies and their employment contract to determine if any terms were violated during their termination.

Employees can file a complaint with the Wyoming Department of Workforce Services or the Equal Employment Opportunity Commission (EEOC) if the termination involves discrimination or retaliation. It is crucial to file the complaint promptly, as there are specific time limits for submitting claims. Legal representation may also be beneficial in navigating the complexities of employment law and enhancing the chances of a successful claim.

Legal Protections During Termination in Wyoming

In Wyoming, federal and state laws provide legal protections for employees during termination. These laws include:

  • Title VII of the Civil Rights Act of 1964: This federal law prohibits termination based on race, color, religion, national origin, or sex (including pregnancy, gender identity, and sexual orientation). Employers with 15 or more employees must comply with Title VII of the Civil Rights Act of 1964, and employees can file for wrongful termination claims with the Equal Employment Opportunity Commission (EEOC).
  • Wyoming Fair Employment Practices Act (WFEPA): The WFEPA is the state anti-discrimination law that mirrors the federal Title VII of the Civil Rights Act law, protecting employees from discrimination based on race, color, national origin, ancestry, age, sex, or disability. This state law applies to employers with two or more employees and prevents wrongful termination on these grounds. Employees can file claims with the Wyoming Department of Workforce Services (DWS) if they believe they were terminated due to discrimination.
  • Age Discrimination in Employment Act (ADEA): The ADEA is a federal law that protects employees aged 40 and older from age-based termination.
  • Americans with Disabilities Act (ADA): The ADA is a federal law that protects employees from being fired based on their disability, provided they can perform essential job duties with reasonable accommodations.
  • Family and Medical Leave Act (FMLA): FMLA is a federal regulation that allows eligible employees to take up to 12 weeks of unpaid leave for medical or family reasons (such as severe health conditions or caring for a newborn) without fear of losing their jobs. Employers with 50 or more employees are subject to FMLA regulations.
  • Occupational Safety and Health Act (OSH Act): The OSH Act is a federal law that protects employees from termination in retaliation for reporting unsafe working conditions. Employees who are fired after reporting workplace hazards may file a complaint with the Occupational Safety and Health Administration (OSHA).

Terminated Employee Benefits in Wyoming

Terminated employees in Wyoming may be eligible for certain benefits depending on the circumstances of their termination. These include:

  • Unemployment Benefits: Employees who are terminated without cause, like in layoffs, may be eligible for unemployment benefits. However, those dismissed for misconduct may be disqualified. To receive unemployment benefits, employees must meet the eligibility requirements, which include being prepared and able to work, as well as actively seeking employment.
  • Health Insurance Continuation: Under the federal Consolidated Omnibus Budget Reconciliation Act (COBRA), employees of companies with 20 or more employees can continue their employer-sponsored health insurance for up to 18 or 36 months, depending on the qualifying circumstances, though they are responsible for the full premium cost. For smaller companies with two to 19 employees, Wyoming Mini COBRA requires employers to offer continuation coverage for up to 12 months, and employees pay up to 102% of the group rate.
  • Final Paycheck: Wyoming law requires terminated employees to receive their final paycheck no later than the next payday or at the time specified under collective bargaining agreement terms.
  • Severance Pay: Employers in Wyoming are not required to provide severance pay to employees unless outlined in an employment contract or company policy.

Layoffs in Wyoming

Layoffs in Wyoming are governed primarily by federal law under the Worker Adjustment and Retraining Notification (WARN) Act, which applies to employers with 100 or more employees. The WARN Act requires the covered employers to provide 60 days’ notice before mass layoffs or plant closures affecting 50 or more workers at a single site. If employers fail to provide the required notice, they may be liable for wages and benefits for the affected period.

Wyoming does not have its own Mini-WARN law, meaning smaller employers or those conducting smaller-scale layoffs are not required to provide advance notice under state law. For companies with fewer than 100 employees or layoffs affecting fewer than 50 workers, the at-will employment doctrine applies, allowing layoffs without a mandatory notification period.

Resignations in Wyoming

In Wyoming, resignations can be either voluntary or involuntary:

Voluntary Resignations

Employees in Wyoming have the right to resign from their jobs voluntarily at any time, as the state operates under at-will employment. This means that an employee can leave their position without providing a reason, and they are not legally obligated to give notice unless stipulated by a contract or company policy. However, giving two weeks’ notice is common practice to maintain professionalism.

Employees under contract must follow the outlined resignation terms, including the notice period governed by the agreement. Failure to follow these terms could result in potential legal consequences.

Involuntary Resignations

Constructive discharge or involuntary resignation occurs when employees feel pressured to leave their jobs due to how they are treated or the overall working environment.

There is often a gray area between involuntary resignation and termination because of Wyoming’s at-will employment, which permits employers to fire employees for any legitimate reason and without prior warning or cause.

Employees who are forced to quit may legally contest their resignation as wrongful termination if they can prove that they resigned because their work environment was intolerable.

Legal Cases Related to Wrongful Termination in Wyoming

1. Healthcare Facility Settles $10,000 for Unlawful Termination Over Pregnancy Discrimination

In the case of EEOC v. Kindred Nursing Centers West, the U.S. Equal Employment Opportunity Commission (EEOC) sued Kindred Nursing Centers West, LLC (Kindred Nursing) for unlawfully firing a pregnant employee.

Kindred Nursing, operating as Mountain Towers Healthcare and Rehabilitation Center in Cheyenne, Wyoming, disciplined the employee who had been performing her duties and eventually dismissed her shortly after the management discovered her pregnancy.

The EEOC argued that Kindred Nursing’s actions violated the Pregnancy Discrimination Act, which is part of Title VII of the Civil Rights Act of 1964. This federal law protects pregnant workers from discrimination and mandates that women be allowed to continue working as long as they can perform their job duties.

The case concluded with a $10,000 settlement for the victim and required Kindred Nursing to implement mandatory anti-discrimination training for staff.

Key Lessons Learned from this Case:

  • Employers cannot legally fire or discipline employees because of pregnancy, as such actions violate anti-discrimination laws.
  • Employers are advised to move away from outdated stereotypes about pregnant employees’ ability to work and ensure fair treatment in the workplace.
  • Implementing anti-discrimination training and educating staff on pregnancy rights is essential for creating a more inclusive workplace.

2. Wyoming Construction Company Settles $135,000 for Wrongful Termination Due to Disability

In the case of EEOC v. T.I.C. – The Industrial Company Wyoming, Inc., TIC Wyoming, a heavy construction company based in Casper, Wyoming, faced allegations of disability discrimination after firing millwright Matthew Gilkey due to his medical condition.

According to the EEOC, Gilkey, who had a leg amputation, performed his job satisfactorily for several weeks but was dismissed when TIC Wyoming decided it could no longer accommodate his physical disability.

The EEOC charged that TIC Wyoming not only refused to allow Gilkey to return to work without medical clearance, despite evidence that he could perform his duties without restrictions but also failed to engage in good faith discussions about reasonable accommodations, which the company initially provided but later withdrew.

The case concluded with a $135,000 settlement, and TIC Wyoming agreed to provide annual training on the Americans with Disabilities Act (ADA) to its employees, supervisors, and managers for two years. The company will also report periodically to the EEOC to ensure compliance with the settlement agreement.

Key Lessons Learned from this Case:

  • Employers are mandated by federal law to make reasonable accommodations for employees with disabilities.
  • Open communication and good faith efforts to address accommodation requests are critical to maintaining compliance with the ADA.
  • Regular training and proactive measures can prevent discrimination and create a more inclusive work environment.

3. Well Servicing Companies Settle $1.2 Million for Race-Based Harassment and Wrongful Termination

In the case of EEOC v. Dart Energy Corp. et al., the EEOC filed a lawsuit against Dart Energy Corp and its affiliated oil and gas well servicing companies, Beckman Production Services and J&R Well Service, for terminating employees who complained about discrimination in the workplace. The lawsuit alleged severe racial and national origin harassment.

According to the complaint, Black, Hispanic, and Native American workers at these companies frequently encountered racial slurs and derogatory comments. Despite numerous complaints, the management largely minimized or disregarded the issues, and employees who raised concerns were retaliated against, some of whom were subsequently demoted or fired.

The case concluded with a $1.2 million settlement and a three-year agreement that mandates training on discrimination laws, the implementation of an anonymous complaint line, and regular employee surveys to ensure compliance. The companies were also required to report to the EEOC biannually to verify their compliance with the agreement’s terms.

Key Lessons Learned from this Case:

  • Workplace harassment based on race and national origin is illegal under federal laws.
  • Employers must take discrimination complaints seriously to avoid allegations of retaliation.
  • Employers can create a safer and more inclusive workplace by implementing proactive measures like training, anonymous reporting lines, and frequent audits.

Explore our comprehensive guide to Wyoming Labor Laws to learn more.

Important Cautionary Note

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