Wrongful Discharge for Refusing to Commit an Illegal Act

What if your boss demanded that you do something unethical, immoral, or illegal? What if you refused and were fired? What protection is available to Texas employees who refuse to engage in inappropriate behaviors? What conduct should employers avoid?

Test your knowledge on when an employee has a claim in this situation.

Question: In which of the following situations has the Texas Supreme Court recognized an employee's right to sue an employer? When the employee is:

   1. fired for refusing to commit an unethical act
   2. fired for refusing to commit an act which will result in civil fines or penalties
   3. fired for reporting illegal acts of coworkers
   4. fired for excessive tardies and for refusing to commit an illegal act
   5. fired for asking if an action is illegal
   6. fired solely for refusing to commit an illegal act
   7. all of the above

Answer: 6. In 1985, in the Sabine Pilot case, the Texas Supreme court recognized a narrow exception to the employment-at-will doctrine: An at-will employee may sue an employer if she is fired solely for refusing to commit an illegal act. Employment-at-will usually allows employers or employees to terminate the employment relationship without cause. The Court has consistently refused to widen the exception. The Sabine Pilot ruling does not protect employees terminated for refusing to commit unethical or immoral acts or acts which will result in civil fines or penalties, employees terminated partly for refusing to commit illegal acts, employees terminated for reporting illegal acts of coworkers (except for specific statutory exceptions) or employees terminated for asking whether required acts are illegal.

A wrongfully discharged employee can recover actual damages in a Sabine Pilot action. Actual damages may include at least the following: back pay, future pay, past and future mental anguish, exemplary damages, prejudgment interest, court costs, injunctive relief and reinstatement to the former position or an equivalent position. Back pay includes lost wages and benefits from the date of the retaliation until the trial date and is reduced by benefits received during the period, such as unemployment compensation and earnings from another job.

Exemplary damages in a Sabine Pilot action are designed to penalize the employer for the morally culpable behavior of the wrongful discharge and to deter such conduct in the future. Employees may receive both reinstatement and monetary damages. The two-year limitations period for Sabine Pilot actions requires the plaintiff to file suit within two years after the termination decision and notice is given.

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