Wrongful termination claims have surged in 2026. The Trump administration's DEI executive orders have prompted widespread corporate restructuring, and many employees dismissed during these reorganisations have potential legal claims that employers may not have adequately evaluated before acting.
Wrongful termination occurs when an employee is dismissed for an illegal reason. Most US employment is "at-will" — meaning employers can dismiss employees for any reason or no reason — but there are important exceptions. Dismissal because of race, sex, religion, national origin, age (40+), disability, or pregnancy is illegal under federal law. Dismissal in retaliation for reporting illegal activity (whistleblower protection), taking FMLA leave, or filing a workers' compensation claim is also illegal. Some states have additional protections beyond federal law.
The Trump administration's executive orders directing federal agencies and contractors to eliminate DEI programmes have prompted many private sector employers to follow suit. However, the executive orders do not change existing federal employment discrimination law. Employees dismissed during DEI programme eliminations who believe their dismissal was pretextual — that DEI restructuring was used as cover for unlawful discrimination — may have viable claims.
Employment lawyers in major cities are reporting a significant increase in consultations from employees dismissed during 2025–2026 corporate restructuring. Time limits apply — federal discrimination claims must be filed with the EEOC within 180–300 days of the adverse action.
Contingency: Most employment discrimination and wrongful termination attorneys take cases on contingency — no upfront fee, with the attorney taking 30–40% of any recovery. This makes legal representation accessible regardless of financial situation.
Hourly: Some employment matters — contract review, severance negotiation, non-compete analysis — are handled hourly at $250–$450/hour.
Flat fee: Severance agreement review typically costs $500–$1,500 flat fee. Worth every dollar — severance agreements often contain non-disparagement clauses, non-competes, and arbitration provisions with significant long-term implications.
Before filing a federal discrimination lawsuit, most employees must first file a charge with the Equal Employment Opportunity Commission (EEOC). The EEOC process can take 6–18 months and may result in mediation, investigation, or a right-to-sue letter. Many employment attorneys will handle the EEOC charge phase on contingency or flat fee before committing to full litigation.
Successful wrongful termination claims can recover back pay (lost wages from dismissal to judgment), front pay (future lost earnings), compensatory damages (emotional distress), punitive damages (for particularly egregious employer conduct), and attorney fees. Federal caps on compensatory and punitive damages apply based on employer size.