Wrongful discharge

• Author: Laura M. Franze
• Pages: 221-278

WRONGFUL

DISCHARGE

3-1

CHAPTER 3

WRONGFUL DISCHARGE

BY LAURA M. FRANZE

3:1. INTRODUCTION

A. Scope of Chapter

B. Overview of “Employment At-Will” Doctrine in Texas

3:2. WRITTEN CONTRACTS

A. Written Contracts

1. Generally

2. Contract Formation

B. Contract Based on Written Term of Salary—The “English Rule”

C. Special Contract Terms

1. Good Cause for Discharge

2. Satisfaction Clauses

3. Notice Provisions

D. The Parol Evidence Rule

3:3. ORAL CONTRACTSCONTRACT FORMATION

A. Generally

B. Oral Statement of Offer Must Be Clear and Def‌inite

C. Indicating an Intent to Be Bound to a Specif‌ic Term of Contract

D. Limiting the Right to Terminate At-Will

E. Attributable to Employer

F. Accepted by Employee

G. With Consideration

3:4. AFFIRMATIVE DEFENSE TO ORAL CONTRACT CLAIM: THE STATUTE OF FRAUDS

A. Generally

B. Applying Statute of Frauds to Promise of Employment Until Retirement Age

C. Applying Statute of Frauds to Promise of Lifetime Employment

D. Applying Statute of Frauds to Promise of Employment so Long as Work Is Satisfactory

E. Applying Statute of Frauds to Promise of Discharge for Cause Only

3:5. IMPLIED CONTRACTS OF EMPLOYMENT

A. Contract Formation Required

B. Handbooks or Policy Manuals

1. Generally

WRONGFUL

DISCHARGE

Texas Employment Law 3-2

2. Employment Policies

3. General Rule: Handbooks Are Not Contracts

4. Cases Where an Exception to General Rule Was Found

5. Effect of Disclaimer

C. Implied Contracts Based on Other Sources

1. Implied Promise of Prospective Employment

2. Employer Practices, Context, or a Combination of Factors

3:6. BREACHES OF EMPLOYMENT CONTRACT

A. Overview

B. Employer Breach

C. Employee Breach

3:7. THIRD PARTY INTERFERENCE WITH EMPLOYMENT CONTRACTS

3:8. REMEDIES IN CONTRACT CLAIMS

A. Overview

B. Reinstatement

C. Past Lost Wages (Back Pay)

D. Future Lost Wages (Front Pay)

E. Loss of Earning Capacity/Mental Anguish

F. Duty to Mitigate Lost Wages

G. Punitive/Exemplary Damages

3:9. QUASICONTRACT CLAIMS: PROMISSORY ESTOPPEL

A. Elements of Claim

B. Statute of Frauds and Promissory Estoppel

C. Independent Action vs. Defensive Plea

1. Estoppel as Defensive Plea

2. Estoppel as Independent Action

D. Estoppel in Public Employer Context

E. Damages Available in Promissory Estoppel Claims

3:10. DISCHARGE IN VIOLATION OF IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING

3:11. DISCHARGE IN VIOLATION OF COMMON LAW PUBLIC POLICYSABINE PILOT

A. Overview

B. Elements of a Sabine Pilot Claim

1. Discharge or Adverse Employment Action

2. “For the Sole Reason”

3. Refusal to Commit Illegal Act

a. Refusal to Commit

b. An Act Illegal Under Criminal Law

c. Requested by the Employer

C. Cases Where Sabine Pilot Doctrine Held to Apply

1. Refusing to Violate Environmental Laws

2. Refusing to Falsify Records

3. Refusal to Refrain From Reporting Misconduct

4. Refusal to Commit Act of Misprision or Make Criminal Misrepresentations

5. Investigating or Questioning the Legality of Employer Instructions

D. Cases Where the Sabine Pilot Doctrine Was Found Not to Apply

1. Reporting an Illegal Act (Whistleblowing)

2. Being Asked Not to Report a Crime

3. Exercising a Civil Right

WRONGFUL

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3-3 Wrongful Discharge

4. Covered Under a Contract

E. Investigating the Legality of a Requested Action

F. No Individual Liability

G. Sabine Pilot Claims Are Subject to Arbitration

H. Public Policy Cases in Other States

3:12. REMEDIES AVAILABLE IN COMMON LAW PUBLIC POLICY CLAIMS

A. Overview

B. Past Lost Wages (Back Pay)

C. Reinstatement/Future Lost Wages (Front Pay)

D. Mental Anguish

E. Punitive/Exemplary Damages

F. Duty to Mitigate

G. No Attorneys’ Fees for Sabine Pilot Claim

3:13. SELECTED DEFENSES TO PUBLIC POLICY CLAIMS

A. Business Reason Defense

B. Statute of Limitations

C. Federal Labor Laws Preemption

1. LMRA Preemption

2. RLA Preemption

3. Employee Retirement Income Security Act

4. Airline Deregulation Act

D. After-Acquired Evidence

3:14. STATUTORY PUBLIC POLICY RESTRICTIONS ON EMPLOYMENT ATWILL

A. Discrimination Claims Under Article 451

B. Whistleblower Protection for Public Employees

C. Public Employees’ Right to Due Process

D. Other Limits on Employment At-Will

1. Agricultural Hazard Communications Protection

2. Voting

3. Jury Ser vice

4. Attendance at Political Conventions

5. Military Dut y

6. Hazard Communication Act

7. Refusal to Administer Abor tion

8. Union Membership

9. Company Store

10. Subpoenas

11. Texas Commission on Human Rights Act

12. Mental Retardation

13. Registered Nurses

14. Hospital Employee Whistleblower

15. Nursing Homes

16. Child Support

17. AIDS Testing

18. Genetic Testing

19. Abortion Procedures

20. County Employees

APPENDICES

Appendix 3-1 Employer Guidelines for Preventing or Mitigating Wrongful Discharge Claims

Appendix 3-2 Supervisor’s Discharge Protocol Checklist