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What is wrongful termination in Tennessee?

Federal & State Law Editorial TeamLast reviewed: 2026-05-02

Tennessee follows at-will employment with statutory and limited common-law exceptions.

1. Common-Law Public Policy Exception

Tennessee recognizes a narrow public policy exception, established in Clanton v. Cain-Sloan Co., 677 S.W.2d 441 (Tenn. 1984) (workers' comp retaliation). The plaintiff must show termination contravenes a clear public policy evidenced by an unambiguous constitutional, statutory, or regulatory provision.

2. Tennessee Public Protection Act (TPPA) — Tenn. Code § 50-1-304

Often called the "whistleblower statute." Prohibits termination for refusing to participate in or remain silent about illegal activities. The 2014 amendments require the plaintiff to show that the protected conduct was the sole reason for the discharge — a stricter "but-for" standard. Damages: lost wages and benefits, attorney's fees.

3. Tennessee Human Rights Act — Tenn. Code § 4-21-401

Prohibits discrimination based on race, creed, color, religion, sex, age (40+), or national origin. Applies to employers with 8+ employees. Must file with THRC within 180 days. 1-year SOL for direct civil action (Tenn. Code § 4-21-311).

4. Tennessee Disability Act — Tenn. Code § 8-50-103

Prohibits disability discrimination by employers with 8+ employees.

5. Workers' Comp Retaliation

Clanton — common-law claim.

6. Tennessee Whistleblower for Public Employees — Tenn. Code § 8-50-116

Protects state employees.

7. WARN Act

Federal WARN applies.

8. 2014 Tort Reform — Caps on Wrongful Termination Damages

Tennessee caps non-economic damages in retaliatory discharge cases at $300,000 to $750,000 based on employer size (Tenn. Code § 50-1-304(d)).

9. Statute of Limitations

  • Public policy tort: 1 year (Tenn. Code § 28-3-104).
  • TPPA: 1 year.
  • THRA: 180 days to THRC; 1 year for direct civil action.
  • This is legal information, not legal advice.

    When to Talk to a Lawyer
    • You face Tennessee's tight 1-year SOL for wrongful termination claims
    • You need to meet the TPPA's strict 'sole reason' causation standard
    • You may have a Clanton workers' comp retaliation claim
    Related Statutes & Laws
    • Tenn. Code § 50-1-304
    • Tenn. Code § 4-21-401
    • Tenn. Code § 8-50-103
    • Tenn. Code § 28-3-104

    This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.