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WRONGFUL TERMINATION DEMAND LETTER

Texas Law


[ATTORNEY/FIRM LETTERHEAD]

[Firm Name]
[Address Line 1]
[City, State ZIP]
Tel: [Phone Number]
Fax: [Fax Number]
[Attorney Email]
[Texas State Bar No.]


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 - TEX. R. EVID. 408

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

This firm represents [Client Full Name] ("our client") regarding [his/her/their] wrongful termination from employment with [Company Legal Name] ("[Company Short Name]") on [Termination Date]. Please direct all further communications to our office.

We write to demand immediate action to remedy the unlawful termination and to resolve this matter short of litigation. [Company Short Name]'s termination of our client violates Texas law and exposes the Company to substantial liability.


I. TEXAS EMPLOYMENT LAW FRAMEWORK

A. At-Will Employment and Its Exceptions

Texas strongly adheres to the employment-at-will doctrine. See Montgomery Cnty. Hosp. Dist. v. Brown, 965 S.W.2d 501 (Tex. 1998). However, Texas recognizes limited exceptions:

1. Sabine Pilot Doctrine (Public Policy Exception)

Texas recognizes a very narrow public policy exception under Sabine Pilot Service, Inc. v. Hauck, 687 S.W.2d 733 (Tex. 1985). The exception is limited to employees terminated solely for refusing to perform an illegal act.

2. Workers' Compensation Retaliation

Tex. Lab. Code 451.001 prohibits retaliation for filing workers' compensation claims.

3. Texas Commission on Human Rights Act

Tex. Lab. Code Ch. 21 prohibits employment discrimination.

B. Key Texas Statutes

Texas Commission on Human Rights Act (Tex. Lab. Code Ch. 21)
- Prohibits discrimination based on race, color, disability, religion, sex, national origin, age (40+), genetic information
- Covers employers with 15+ employees (1+ for age discrimination)
- 180-day filing deadline with TWC Civil Rights Division

Workers' Compensation Retaliation (Tex. Lab. Code 451.001)
- Prohibits discharge for filing workers' compensation claim
- 2-year statute of limitations
- Provides for reinstatement and damages

Texas Whistleblower Act (Tex. Gov't Code Ch. 554)
- Protects public employees who report violations of law
- Limited to public sector
- 90-day statute of limitations


II. FACTUAL BACKGROUND

A. Employment History

[Client Full Name] was employed by [Company Short Name] from [Start Date] through [Termination Date] as a [Job Title] in [City], Texas.

Employment Summary:

Category Details
Start Date [Date]
Final Position [Title]
Final Salary $[Amount] per [year/hour]
Supervisor [Name, Title]
Work Location [Address]
Termination Date [Date]

Our client was a dedicated employee with an excellent performance record:
- [Describe positive performance history]
- [Describe promotions, raises, commendations]
- [Describe any relevant achievements]

B. The Protected Activity / Triggering Event

On or about [Date], our client [describe protected activity]:

  • Refused to commit an illegal act (Sabine Pilot doctrine)
  • Filed a workers' compensation claim under Tex. Lab. Code 451.001
  • Filed a complaint with the Texas Workforce Commission Civil Rights Division
  • [For public employees: Reported violations of law under the Texas Whistleblower Act]
  • [Other protected activity]

C. The Wrongful Termination

On [Termination Date], [Company Short Name] terminated our client, purportedly for [stated reason]. This stated reason is pretextual, as evidenced by:

  1. Temporal proximity: The termination occurred just [X days/weeks] after the protected activity
  2. Prior positive treatment: Our client had [no prior discipline / positive reviews / recent promotion]
  3. Disparate treatment: Similarly situated employees who did not engage in protected activity were [not terminated / treated more favorably]
  4. Shifting explanations: [Describe any inconsistent reasons given]
  5. Direct evidence: [Describe any statements indicating true motive]

III. LEGAL CLAIMS UNDER TEXAS LAW

A. Sabine Pilot Doctrine - Wrongful Discharge

[If applicable:] Under Sabine Pilot Service, Inc. v. Hauck, 687 S.W.2d 733 (Tex. 1985), Texas recognizes a narrow exception to at-will employment when an employee is discharged solely for refusing to perform an illegal act.

Our client was terminated solely because [he/she/they] refused to [describe illegal act requested].

Elements of Sabine Pilot Claim:
1. Employee was required to perform an illegal act
2. Employee refused to perform the illegal act
3. Employee was discharged solely for refusing to perform the illegal act
4. The act would have been a criminal offense carrying penalties

See Ed Rachal Found. v. D'Unger, 207 S.W.3d 330 (Tex. 2006) (clarifying Sabine Pilot elements).

Remedies:
- Actual damages (lost wages)
- Mental anguish damages (with proper proof)
- Punitive damages (in egregious cases)

B. Retaliatory Discharge - Workers' Compensation (Tex. Lab. Code 451.001)

[If applicable:] Texas Labor Code 451.001 provides:

"A person may not discharge or in any other manner discriminate against an employee because the employee has: (1) filed a workers' compensation claim in good faith..."

Our client filed a workers' compensation claim on [Date] for [injury]. [Company Short Name] terminated our client in retaliation.

Remedies under Tex. Lab. Code 451.001:
- Reinstatement to former position
- Compensation for lost wages
- Reasonable attorney's fees

See Tex. Lab. Code 451.002.

C. Violation of Texas Commission on Human Rights Act (Tex. Lab. Code Ch. 21)

[If applicable:] [Company Short Name]'s termination was motivated by discrimination based on [protected characteristic].

The TCHRA prohibits employment discrimination based on race, color, disability, religion, sex, national origin, age (40+), and genetic information.

Remedies under TCHRA (Tex. Lab. Code 21.2585):
- Back pay
- Compensatory damages
- Punitive damages
- Reinstatement or front pay
- Reasonable attorney's fees and costs

Damage Caps (Tex. Lab. Code 21.2585):

Employer Size Compensatory + Punitive Cap
15-100 employees $50,000
101-200 employees $100,000
201-500 employees $200,000
501+ employees $300,000

D. Breach of Express Contract

[If applicable:] [Company Short Name] breached an express employment contract.

Evidence of contract:
- Written employment agreement stating [quote relevant language]
- Specific term of employment
- Express limitations on termination

Note: Texas does not generally recognize implied contracts from handbooks.


IV. DAMAGES

A. Economic Damages

1. Back Pay

Category Calculation Amount
Lost base salary $[Annual] x [months] / 12 $[Amount]
Lost overtime [Calculation] $[Amount]
Lost bonuses [Calculation] $[Amount]
Subtotal $[Amount]

2. Lost Benefits

Benefit Monthly Value Months Amount
Health insurance $[Amount] [X] $[Amount]
401(k) match $[Amount] [X] $[Amount]
Other benefits $[Amount] [X] $[Amount]
Subtotal $[Amount]

3. Front Pay

Category Calculation Amount
Future lost wages [X years] x $[salary] $[Amount]
Future lost benefits [Calculation] $[Amount]
Subtotal $[Amount]

B. Compensatory Damages (Non-Economic)

Our client has suffered severe emotional distress:
- [Describe anxiety, depression, humiliation]
- [Describe impact on health and relationships]
- [Describe medical treatment sought]

Emotional distress/mental anguish damages: $[Amount]

C. Punitive Damages

[Company Short Name]'s conduct was willful, malicious, and in conscious disregard of our client's rights.

Note: Punitive damages subject to statutory caps under TCHRA.

Punitive damages: $[Amount]

D. Attorney's Fees

Under Tex. Lab. Code 451.002 (WC retaliation) and Tex. Lab. Code 21.259 (TCHRA), our client is entitled to reasonable attorney's fees.

Estimated fees through trial: $[Amount]

E. Summary of Damages

Category Amount
Back Pay $[Amount]
Lost Benefits $[Amount]
Front Pay $[Amount]
Emotional Distress $[Amount]
Punitive Damages $[Amount]
Attorney's Fees $[Amount]
TOTAL $[Amount]

V. SETTLEMENT DEMAND

We demand that [Company Short Name] pay $[Settlement Demand Amount] in full settlement of all claims.

Additional Terms:
- Neutral reference (dates and position only)
- No contest to unemployment benefits
- Expungement of personnel file
- Mutual non-disparagement
- Confidentiality (terms to be negotiated)


VI. RESPONSE DEADLINE

Please respond within fourteen (14) calendar days, no later than [Response Deadline Date].

If we do not receive a satisfactory response, we are authorized to file suit in the [District Court of [County] County, Texas / United States District Court for the [Northern/Southern/Eastern/Western] District of Texas] without further notice.

Causes of Action:
1. Wrongful Discharge Under Sabine Pilot Doctrine
2. Retaliatory Discharge in Violation of Tex. Lab. Code 451.001
3. Violation of Texas Commission on Human Rights Act (Tex. Lab. Code Ch. 21)
4. [Other claims as applicable]


VII. DOCUMENT PRESERVATION

Immediately implement a litigation hold to preserve all relevant documents and ESI regarding our client's employment, performance, and termination.


VIII. CONFIDENTIALITY

This letter is protected by Texas Rule of Evidence 408 and constitutes a confidential settlement communication.


Sincerely,

[Attorney Name]
[Title]
[Firm Name]
[Texas State Bar No.]


Enclosures:
- Authorization to Represent

cc: [Client Name]
[File]


TEXAS-SPECIFIC PRACTICE NOTES (Do Not Include in Final Letter)

Key Texas Considerations

  • Texas is a strong at-will state with very limited exceptions
  • Sabine Pilot is extremely narrow - only refusing to commit illegal acts
  • Texas does not recognize implied contracts from handbooks
  • TCHRA mirrors Title VII with similar procedures and damage caps
  • TWC Civil Rights Division handles discrimination claims
  • 180-day filing deadline with TWC
  • Texas is a deferral state - 300-day EEOC deadline
  • Workers' compensation retaliation is a strong statutory claim
  • Texas Whistleblower Act is only for public employees
  • Consider federal claims to avoid state damage caps

Venue Options

  • Texas District Court (general jurisdiction)
  • Federal Court (if federal claims or diversity jurisdiction)
  • Administrative: TWC Civil Rights Division for discrimination claims

Statute of Limitations

Claim SOL Citation
Sabine Pilot 2 years Tex. Civ. Prac. & Rem. Code 16.003
WC Retaliation 2 years Tex. Lab. Code 451.001
TCHRA (admin charge) 180 days Tex. Lab. Code 21.202
TCHRA (civil action) 2 years Tex. Lab. Code 21.256
Contract (written) 4 years Tex. Civ. Prac. & Rem. Code 16.004
Contract (oral) 4 years Tex. Civ. Prac. & Rem. Code 16.004
Tort 2 years Tex. Civ. Prac. & Rem. Code 16.003

Key Texas Cases

  • Sabine Pilot Service, Inc. v. Hauck, 687 S.W.2d 733 (Tex. 1985) (narrow public policy exception)
  • Ed Rachal Found. v. D'Unger, 207 S.W.3d 330 (Tex. 2006) (Sabine Pilot elements)
  • Montgomery Cnty. Hosp. Dist. v. Brown, 965 S.W.2d 501 (Tex. 1998) (at-will doctrine)
  • Safeshred, Inc. v. Martinez, 365 S.W.3d 655 (Tex. 2012) (WC retaliation)
  • Mission Consol. Indep. Sch. Dist. v. Garcia, 372 S.W.3d 629 (Tex. 2012) (TCHRA standards)
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Wrongful Termination Demand Letter - Texas

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