In addition, employers may be bound by oral promises and by past practices and procedures. There may also be quasi-contractual rights that preclude an employer from taking unfair advantage of an employee and from acting in bad faith. When analyzing potential claims, it is important that the employee gathers all possible documents and tries to recall any specific oral promises and practices of the employer. However, an employee cannot be terminated for an illegal reason. Notwithstanding the new employment paradigm, what is illegal for old economy employers is illegal for new economy employers.
Federal law prohibits discrimination based on race, sex, age, disability, and national origin.
Federal laws generally cover employers with more than 15 employees. State laws often expand these protections to include areas such as sexual orientation, family status and other protected characteristics, and may cover employers with fewer employees. Federal and state laws also protect employees against termination for protesting discrimination, for making complaints regarding illegal activities, and for using family and medical leave. Finally, state tort and contract laws may protect employees from termination for certain illegal motives, such as refusing to violate the law or condone illegal behavior or if the employer acted in bad faith. In the high-tech community, employees at times are fired to prevent vesting of stock options.