Constructive Termination: Causing Emotional Distress to Employees

Some employers, thinking that they can avoid wrongful termination lawsuit, will intentionally make the working conditions intolerable to force their workers to resign. However, many courts interpret this practice as constructive termination and employers may still be held liable for a lawsuit.

What Constitutes a Constructive Discharge?

• The employer has changed the working condition which is the main reason why the worker was forced to resign.


• To establish a “cause and effect” relationship, the change in working condition and the resignation must have occurred closely.


• The change in working condition must be intolerable that any reasonable person will be forced to quit his job.
  
  In case the change can be tolerated by a reasonable person, a worker may not file a lawsuit against his employer based on constructive discharge.
  
  For example, a worker who was assigned to a cubicle which is farthest to the bathroom will not constitute to constructive termination.


• The employer has intentionally allowed or created the intolerable working condition that has forced the worker to quit his job.


• The employer has allowed a practice which is discriminatory in nature, causing emotional distress to the worker and forcing him to resign.


• The employer has allowed or initiated an act which is considered as a form of sexual harassment that forced the worker to resign.


• The worker was demoted or designated to an undesirable position without any valid reason, thus forcing him to resign. (Doing this may also constitute to unlawful retaliation.)


• Humiliating the worker (e.g. shouting, cursing, using derogatory term such as racial slur, and teasing) in front of others with an intention to force him to resign.


• The employer has physically threatened or showed hostility against the worker who was then forced to quit his job.

What Workers Can Do

Workers who experienced constructive termination should immediately report their case to the US Equal Employment Opportunity Commission (EEOC) if they think that their employers’ action is based on discrimination.

On the other hand, if the constructive discharge was done to punish employees who reported their employer’s violation in minimum and overtime pays, they may file their case to the US Department of Labor.

While victims of constructive discharge can file their case to these federal agencies without a legal representative, it is highly ideal to hire employment lawyers especially if they want to bring their case to a federal court.

Legal Remedies for Victims of Constructive Discharge

Courts give legal remedies to victims of constructive discharge that usually cover economic damages.

• Back pay
• Reinstatement (however, most workers will decline this offer)
• Moral damages for all the emotional distress and trauma a worker has experienced from his employer.
• Attorney’s fees
• Expert witness’s fees
• Other court expenses