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Can I sue for wrongful termination in Texas?

Federal & State Law Editorial TeamLast reviewed: 2026-05-18

1. At-Will Default

Texas is one of the strongest at-will jurisdictions, dating to East Line & R.R.R. Co. v. Scott, 72 Tex. 70 (1888).

2. Public Policy Exception

The sole judicially recognized exception is Sabine Pilot Service, Inc. v. Hauck, 687 S.W.2d 733 (Tex. 1985) — termination for refusing to perform an illegal act carrying criminal penalties. Texas courts have refused to expand this beyond the narrow Sabine Pilot rule.

3. Implied Contract

Texas rejects implied-contract claims based on handbooks. Handbooks typically include at-will disclaimers, and oral assurances do not defeat at-will absent a specific term or "definite, stated term of employment" (Montgomery County Hosp. Dist. v. Brown, 965 S.W.2d 501 (Tex. 1998)).

4. Implied Covenant of Good Faith

Not recognized in Texas employment context (City of Midland v. O'Bryant, 18 S.W.3d 209 (Tex. 2000)).

5. Statutory Discrimination Claims

Texas Commission on Human Rights Act (TCHRA), Tex. Lab. Code Ch. 21, mirrors Title VII and is enforced by the Texas Workforce Commission Civil Rights Division (TWCCRD). Charge must be filed within 180 days. EEOC charge within 300 days (deferral state). Damages capped per Title VII (§ 21.2585).

6. Retaliation Statutes

Tex. Lab. Code § 451.001 (workers' comp retaliation); § 21.055 (TCHRA retaliation); Texas Whistleblower Act (Gov. Code Ch. 554 — public employees only); Sarbanes-Oxley for publicly traded companies.

7. WARN Act

Texas has no state mini-WARN. Federal WARN applies (60 days' notice, 100+ employees).

8. Damages

Sabine Pilot: back pay, mental anguish, punitive. TCHRA: back pay, compensatory/punitive capped ($50k–$300k by employer size); attorney's fees.

9. Statute of Limitations

Sabine Pilot: 2 years; TCHRA charge: 180 days; § 451 retaliation: 2 years; written contract: 4 years (Tex. Civ. Prac. & Rem. Code § 16.004).

This is legal information, not legal advice.

When to Talk to a Lawyer
  • You were fired specifically for refusing to commit a criminal act (Sabine Pilot)
  • You filed a workers' compensation claim and were terminated shortly after
  • You experienced discrimination based on race, sex, age, religion, disability, or national origin
Related Statutes & Laws
  • Tex. Lab. Code Ch. 21 (TCHRA)
  • Tex. Lab. Code § 451.001
  • Tex. Gov. Code Ch. 554 (Whistleblower)
  • Sabine Pilot Service v. Hauck, 687 S.W.2d 733 (Tex. 1985)

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.