WRONGFUL TERMINATION DEMAND LETTER

STATE OF ARIZONA

[ATTORNEY/FIRM LETTERHEAD]

[Firm Name]
[Address Line 1]
[City, Arizona ZIP]
Tel: [Phone Number]
Fax: [Fax Number]
[Attorney Email]
[State Bar of Arizona Number]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [recipient_email]

[Date]

[Employer Contact Name]
[Title]
[Company Legal Name]
[Company Address]
[City, State ZIP]

Re: Wrongful Termination of [Client Full Name]
Former Position: [Job Title]
Dates of Employment: [Start Date] through [Termination Date]
CONFIDENTIAL SETTLEMENT COMMUNICATION PURSUANT TO ARIZ. R. EVID. 408

Dear [Mr./Ms./Mx. Last Name]:

This firm represents [Client Full Name] ("our client" or "[Mr./Ms./Mx. Client Last Name]") regarding [his/her/their] wrongful termination from employment with [Company Legal Name] ("[Company Short Name]" or "the Company") on or about [Termination Date]. Please direct all further communications regarding this matter to our office and refrain from any direct contact with our client.

We write to demand immediate action to remedy the unlawful termination of our client and to resolve this matter short of litigation. As detailed below, [Company Short Name] terminated our client in violation of Arizona law, exposing the Company to substantial liability.

I. ARIZONA EMPLOYMENT LAW FRAMEWORK

A. Arizona Employment Protection Act (AEPA)

Arizona's employment-at-will doctrine is codified and modified by the Arizona Employment Protection Act (AEPA), A.R.S. Section 23-1501 et seq. This statute provides the exclusive framework for wrongful termination claims in Arizona, replacing common law theories.

Under A.R.S. Section 23-1501(A)(3), an employee has a claim for wrongful termination if the employer has terminated the employment relationship:

"(a) In breach of an employment contract, written or verbal, in which the employer agreed to the employee's length of employment or to employment until retirement.

(b) In breach of the implied contract created by the employer's written personnel policy or manual containing procedures for termination that the employee can reasonably expect the employer to follow.

(c) In retaliation for [enumerated protected activities]."

B. Public Policy Exception (Codified)

A.R.S. Section 23-1501(A)(3)(c) provides that an employee has a claim for wrongful termination if the employer has terminated the employment relationship in retaliation for:

"(i) The refusal by the employee to commit an act or omission that would violate the Constitution of Arizona or the statutes of this state.

(ii) The disclosure by the employee in a reasonable manner that the employee has information or a reasonable belief that the employer, or an employee of the employer, has violated, is violating or will violate the Constitution of Arizona or the statutes of this state to either the employer or a representative of the employer who the employee reasonably believes is in a managerial or supervisory position...

(iii) The exercise of rights under the workers' compensation statutes prescribed in chapter 6 of this title.

(iv) Service on a jury as permitted or required by law.

(v) The exercise of voting rights under the laws of this state.

(vi) The exercise of free choice with respect to nonmembership in a labor organization.

(vii) Service in the national guard or armed forces reserves of the United States."

C. Implied Contract Exception

Under A.R.S. Section 23-1501(A)(3)(a)-(b), Arizona recognizes implied contract claims based on:

• Written personnel policies or manuals that create express or implied terms of employment
• Oral representations regarding termination procedures or job security
• Express employment contracts specifying duration or termination procedures

Important Limitation: A.R.S. Section 23-1501(A)(2) provides:

"An employment relationship is severable at the pleasure of either party unless both parties agree in writing to a definite term or explicitly agree otherwise."

Employers may include disclaimers negating contractual intent, and general statements of policy do not create contractual obligations.

D. Good Faith and Fair Dealing (Narrowly Construed)

A.R.S. Section 23-1501(A)(3)(b) recognizes the implied covenant of good faith and fair dealing but limits it to situations where the employer has:

"terminated the employment relationship with the dominant purpose or motive of denying the employee a benefit that was otherwise owed under an express or implied agreement."

This is a narrow exception requiring proof that termination was primarily motivated by intent to deprive the employee of earned benefits.

II. ARIZONA STATUTORY PROTECTIONS

A. Arizona Civil Rights Act (ACRA)

A.R.S. Section 41-1463 prohibits employment discrimination based on:
- Race, color, religion, sex, national origin
- Age (40 and older)
- Disability
- Genetic testing

Administrative Exhaustion: Complaints must be filed with the Arizona Civil Rights Division (ACRD) or EEOC within 180 days of the alleged discriminatory act.

Remedies: A.R.S. Section 41-1481 provides for:
- Back pay and benefits
- Reinstatement or front pay
- Compensatory damages
- Attorney's fees and costs

B. Arizona Whistleblower Protections

State Employee Whistleblower Protection:
A.R.S. Section 38-532 protects state and local government employees who disclose violations of law or misuse of public resources.

Private Sector Whistleblower Protection:
A.R.S. Section 23-1501(A)(3)(c)(ii) provides protection for employees who disclose employer violations of Arizona law to appropriate persons within the organization.

C. Workers' Compensation Retaliation

A.R.S. Section 23-1501(A)(3)(c)(iii) explicitly prohibits termination in retaliation for:
- Filing a workers' compensation claim
- Exercising any rights under the workers' compensation statutes (A.R.S. Title 23, Chapter 6)

This protection is codified directly in the Employment Protection Act.

D. Jury Service Protection

A.R.S. Section 21-236 prohibits employers from:
- Requiring employees to use annual, vacation, or sick leave for jury service
- Threatening or terminating employees for jury service

A.R.S. Section 23-1501(A)(3)(c)(iv) also prohibits retaliatory termination for jury service.

E. Voting Leave Protection

A.R.S. Section 16-402 requires employers to provide paid leave for voting if employee's work hours do not allow three consecutive hours to vote.

A.R.S. Section 23-1501(A)(3)(c)(v) prohibits retaliatory termination for exercising voting rights.

F. Military Leave Protection

A.R.S. Section 26-167 and Section 26-168 protect employees serving in the National Guard or armed forces reserves.

A.R.S. Section 23-1501(A)(3)(c)(vii) prohibits retaliatory termination for military service.

G. Victims' Rights Leave

A.R.S. Section 13-4439 requires employers to permit crime victims to attend court proceedings.

H. Arizona WARN Act

Arizona does not have a state-specific WARN Act. The federal WARN Act (29 U.S.C. Section 2101 et seq.) applies to covered employers (100+ employees).

III. FACTUAL BACKGROUND

A. Employment History and Performance

[Client Full Name] was employed by [Company Short Name] from [Start Date] through [Termination Date], a period of approximately [X years/months]. [He/She/They] most recently held the position of [Job Title] in the [Department], reporting to [Supervisor Name and Title].

Throughout [his/her/their] tenure, our client was a dedicated, high-performing employee:

• [Describe positive performance reviews, ratings, or commendations]
• [Describe any promotions, raises, or increased responsibilities]
• [Describe any awards, recognition, or special achievements]
• [Describe positive feedback from supervisors, clients, or colleagues]

At no time prior to [Date of First Adverse Action] did our client receive any disciplinary action or warning suggesting [his/her/their] employment was in jeopardy.

B. The Protected Activity / Triggering Event

On or about [Date], our client engaged in protected activity under the Arizona Employment Protection Act:

• [ ] Refused to commit an act violating Arizona Constitution or statutes (A.R.S. Section 23-1501(A)(3)(c)(i))
• [ ] Disclosed employer violations of Arizona law to appropriate persons (A.R.S. Section 23-1501(A)(3)(c)(ii))
• [ ] Exercised rights under workers' compensation statutes (A.R.S. Section 23-1501(A)(3)(c)(iii))
• [ ] Served on jury duty (A.R.S. Section 23-1501(A)(3)(c)(iv))
• [ ] Exercised voting rights (A.R.S. Section 23-1501(A)(3)(c)(v))
• [ ] Exercised rights regarding labor organization membership (A.R.S. Section 23-1501(A)(3)(c)(vi))
• [ ] Served in National Guard or armed forces reserves (A.R.S. Section 23-1501(A)(3)(c)(vii))
• [ ] Complained about discrimination under ACRA
• [ ] Other protected activity: [Describe]

Specifically, our client [provide detailed narrative of the protected activity, including dates, witnesses, and documentation].

C. Adverse Employment Actions and Termination

Following our client's protected activity, [Company Short Name] engaged in retaliatory conduct:

Timeline of Adverse Actions:

On [Termination Date], [Supervisor/HR Representative Name] informed our client that [his/her/their] employment was being terminated. The stated reason of [employer's stated reason] is pretextual, as evidenced by:

1. [Temporal proximity between protected activity and termination]
2. [Disparate treatment compared to similarly situated employees]
3. [Statements or evidence of retaliatory motive]
4. [Deviation from standard company policies or procedures]
5. [Inconsistent or shifting explanations for termination]

IV. LEGAL CLAIMS

A. Wrongful Termination Under A.R.S. Section 23-1501(A)(3)(c) - Retaliation

[Company Short Name]'s termination of our client violates Arizona's Employment Protection Act. Under A.R.S. Section 23-1501(A)(3)(c), terminating an employee in retaliation for [describe protected activity] constitutes actionable wrongful termination.

The specific statutory protection violated is A.R.S. Section 23-1501(A)(3)(c)([applicable subsection: i, ii, iii, iv, v, vi, or vii]), which prohibits retaliatory termination for [specific protected activity].

B. Breach of Implied Employment Contract

[If applicable:] Under A.R.S. Section 23-1501(A)(3)(a)-(b), [Company Short Name]'s employment policies and representations created an implied contract.

Evidence of the implied contract includes:
- [Specific personnel policy or handbook language regarding termination procedures]
- [Oral representations made by management regarding job security]
- [Company's established practices regarding discipline and termination]

Note: [The Company's handbook does / does not] contain a disclaimer negating contractual intent.

[Company Short Name] breached this implied contract by terminating our client without just cause and without following established termination procedures.

C. Breach of Implied Covenant of Good Faith and Fair Dealing

[If applicable:] Under A.R.S. Section 23-1501(A)(3)(b), [Company Short Name] breached the implied covenant of good faith and fair dealing by terminating our client with the dominant purpose of denying [him/her/them] earned benefits, specifically:

• [Identify specific benefit employee was about to receive, e.g., commission, bonus, stock vesting]
• [Describe timing of termination relative to benefit vesting/payment]
• [Describe evidence that termination was primarily motivated by desire to deny benefit]

D. Violation of Arizona Civil Rights Act, A.R.S. Section 41-1463

[If applicable:] Our client's termination constitutes unlawful discrimination based on [protected characteristic] in violation of the Arizona Civil Rights Act, A.R.S. Section 41-1463.

[Describe the discriminatory conduct and evidence supporting the claim.]

Administrative Status: [Our client has filed / intends to file] a complaint with the Arizona Civil Rights Division within the 180-day filing deadline.

E. [Additional Federal Claims as Applicable]

[Insert additional claims such as Title VII, ADA, ADEA, FMLA, etc., if applicable]

V. DAMAGES

A. Statute of Limitations

CRITICAL: Under A.R.S. Section 23-1501(B), claims under the Employment Protection Act must be brought within one (1) year after the date of termination.

• AEPA Claims: ONE YEAR from termination date. A.R.S. Section 23-1501(B).
• Contract Claims: Six (6) years under A.R.S. Section 12-548.
• ACRA Claims: File with ACRD within 180 days.

This claim arises from termination on [Date], and therefore the AEPA limitations period expires on [Date].

B. Economic Damages

1. Lost Wages (Back Pay)

2. Lost Benefits

3. Front Pay / Future Lost Earnings

C. Non-Economic Damages

Arizona permits recovery for emotional distress in wrongful termination cases. Our client has suffered:

• [Describe emotional distress symptoms]
• [Describe impact on physical health]
• [Describe impact on personal relationships]
• [Describe medical/psychological treatment sought]
• [Describe reputational harm]

Estimated non-economic damages: $[Amount]

D. Punitive Damages

Under Arizona law, punitive damages require a showing of "evil mind" manifested by either:
- Intent to injure, or
- Despicable conduct undertaken with conscious disregard for the safety or rights of others

See Rawlings v. Apodaca, 151 Ariz. 149, 726 P.2d 565 (1986).

[Company Short Name]'s conduct meets this standard because:
- [Describe evidence of evil mind or despicable conduct]
- [Describe conscious disregard for employee rights]

Estimated punitive damages: $[Amount]

E. Attorney's Fees and Costs

Under A.R.S. Section 12-341.01, reasonable attorney's fees may be awarded in contract actions.

Under A.R.S. Section 41-1481(J), attorney's fees are available to prevailing plaintiffs in ACRA discrimination cases.

Estimated attorney's fees through trial: $[Amount]

F. Mitigation of Damages

Arizona law requires that wrongful termination plaintiffs mitigate damages. Our client has diligently sought comparable employment:
- [Describe job search efforts]
- [Describe applications submitted]
- [Describe interviews attended]
- [Describe any interim employment obtained]

G. Summary of Damages

VI. SETTLEMENT DEMAND

Based on the foregoing, we hereby demand that [Company Short Name] pay our client the sum of $[Settlement Demand Amount] in full and final settlement of all claims arising from [his/her/their] wrongful termination.

In addition to monetary compensation, we require:

• [ ] A neutral employment reference
• [ ] Expungement of negative information from personnel file
• [ ] Agreement not to contest unemployment benefits
• [ ] Mutual non-disparagement provisions
• [ ] Confidentiality provisions (subject to negotiation)
• [ ] [Other non-monetary terms]

VII. RESPONSE DEADLINE

Please respond to this demand in writing within fourteen (14) calendar days of your receipt of this letter, no later than [Response Deadline Date].

If we do not receive a satisfactory response by that date, we are authorized and prepared to file suit in the Superior Court of Arizona, [County] County, without further notice.

IMPORTANT: Given the one-year statute of limitations under A.R.S. Section 23-1501(B), prompt resolution is in both parties' interests.

VIII. PRESERVATION OF EVIDENCE

This letter serves as formal notice to implement a litigation hold and preserve all documents and electronically stored information relating to our client's employment and termination, including but not limited to:

• [ ] Complete personnel file
• [ ] All emails and electronic communications regarding our client
• [ ] Documents relating to the termination decision
• [ ] Policies and procedures regarding termination and discipline
• [ ] Comparative employee files
• [ ] Electronic access logs and records

Failure to preserve evidence may result in spoliation sanctions under Arizona law.

IX. CONFIDENTIALITY

This letter constitutes a confidential settlement communication protected under Arizona Rule of Evidence 408 and may not be used as evidence in any proceeding except to enforce a settlement agreement.

We trust that [Company Short Name] will give this matter serious attention and respond in a timely manner. Our client prefers to resolve this matter without litigation but is fully prepared to pursue all available legal remedies.

Sincerely,

[Attorney Name]
[Title]
[Firm Name]
State Bar of Arizona No. [Number]

Enclosures:
- [ ] Authorization to Represent
- [ ] [Supporting documentation]

cc: [Client Name] (via email)
[File]

ARIZONA-SPECIFIC PRACTICE NOTES

• [ ] Arizona Employment Protection Act is EXCLUSIVE: A.R.S. Section 23-1501 et seq. provides the exclusive statutory framework for wrongful termination claims. Common law theories are generally preempted.

• [ ] ONE-YEAR Statute of Limitations: AEPA claims must be filed within ONE YEAR of termination. This is shorter than many states. Calendar carefully and advise client promptly.

• [ ] Handbook Disclaimers: Arizona law specifically allows employers to disclaim contractual obligations in handbooks. Review ALL employment documents for disclaimer language before asserting implied contract claims.

• [ ] Good Faith Covenant Narrowly Construed: Unlike Alaska or Montana, Arizona limits the good faith covenant to situations where termination was primarily motivated by desire to deny earned benefits. Must prove "dominant purpose."

• [ ] Public Policy Must Be Statutory: Under AEPA, public policy exceptions are limited to violations of Arizona Constitution or statutes. Cannot rely on general public policy or federal law.

• [ ] Whistleblower Disclosure Requirements: A.R.S. Section 23-1501(A)(3)(c)(ii) requires disclosure to "appropriate persons" - ensure client reported to someone in managerial/supervisory position with authority to investigate.

• [ ] ACRA Filing Deadline: 180 days to file with ACRD for state discrimination claims (shorter than federal 300-day period with EEOC).

• [ ] Constructive Discharge: Arizona recognizes constructive discharge claims where working conditions are so intolerable that a reasonable person would resign. See Wagenseller v. Scottsdale Memorial Hospital, 147 Ariz. 370 (1985).

• [ ] Venue: Superior Court in county where defendant resides or where cause of action arose.

• [ ] Offer of Judgment: Arizona Rule of Civil Procedure 68 provides for cost-shifting if plaintiff rejects offer and doesn't obtain more favorable judgment.