The recent news that President Donald Trump attempted to fire Federal Reserve Governor Lisa Cook has put a spotlight on a complex and often misunderstood area of employment law. While the specifics of this high-profile case are unique to a federal official, they raise a critical question for every American worker: Can my boss fire me “for cause,” and what protections do I have?
For the vast majority of private-sector employees, the answer is a lot less certain than it is for a Fed Governor. Lisa Cook’s position is a rare example of an office that requires a “for cause” termination, a legal standard with a very high bar to clear. For the rest of us, the legal default is a principle known as “at-will” employment, which gives employers immense flexibility—but also has important exceptions that are your most powerful protections.
This article will break down the crucial differences between “for cause” and “at-will” employment, explain the legal safeguards you have against wrongful termination, and provide actionable steps to take if you find yourself in this situation.
For Cause vs. At-Will: Understanding the Difference
In the case of Lisa Cook, the law is very specific. As a Federal Reserve Governor, she serves a 14-year term designed to insulate her from political pressure and can only be removed for a narrow and well-defined “cause,” such as “malfeasance in office.” Trump’s move to fire her over allegations of mortgage fraud is an attempt to meet this high legal standard, and it’s a battle that will likely be fought in court.
This is a stark contrast to the world of “at-will” employment, which is the default for most of the U.S. In at-will states, your employer can legally fire you at any time, for any reason, or for no reason at all. It’s a two-way street, as you, the employee, can also quit at any time without notice. This can feel like a harsh and one-sided system, but it is the foundation of most employment relationships.
This means that while a “for cause” firing in the private sector does happen—for example, for things like theft, insubordination, or violating company policy—an employer doesn’t need to have a reason at all. The very term “for cause” is often used in employment contracts, which are one of the key exceptions to the at-will doctrine.
Your Most Powerful Protections: Exceptions to At-Will Employment
Even in at-will states, your employer’s power is not absolute. There are three major exceptions that offer you a crucial layer of protection.8 These are what form the basis of most wrongful termination claims.
- Public Policy Exception: This is a widely recognized exception in most states. An employer cannot fire you for a reason that violates a clear and important public policy. This includes things like:
- Refusing to commit an illegal act your boss ordered you to do.
- Serving on a jury or performing a military duty.
- Filing a workers’ compensation claim after a workplace injury.
- “Whistleblowing,” or reporting illegal or unsafe activities at your company to the proper authorities.
- Illegal Discrimination: Federal and state laws make it illegal to fire you based on your membership in a “protected class.” The U.S. Equal Employment Opportunity Commission (EEOC) enforces laws that prohibit discrimination based on:
- Race, color, and national origin, Religion, Sex (including pregnancy, sexual orientation, and gender identity) Age (if you are 40 or older), Disability Genetic information
- Employment Contracts: If you have a written employment contract, it can supersede the at-will doctrine. This is common for executives, athletes, and unionized workers. A contract can specify a set term of employment and, most importantly, detail the specific reasons for which you can be terminated. In this case, your employer is bound by the terms of the contract and cannot fire you for any other reason. Some states also recognize an “implied contract,” where promises made in an employee handbook or verbal assurances of job security could be legally binding, but these are often difficult to prove.
What to Do If You’ve Been Fired
A sudden job loss can be a major financial and emotional shock. It’s important to know your options and take the right steps to protect yourself.
- Review Your Documentation: Look through your employment contract, offer letter, and any employee handbooks or policy documents. These might contain important information about termination procedures or your rights.
- File for Unemployment: If you’re fired, you are generally eligible for unemployment benefits, as long as you weren’t terminated for “misconduct.” Misconduct usually refers to an intentional disregard for your employer’s interests, like theft or insubordination. Poor performance, on the other hand, is usually not considered misconduct and would not disqualify you from receiving benefits.
- Don’t Sign Anything Without Review: If you are offered a severance package, read the terms carefully. Often, an employer will require you to sign a release of claims, meaning you agree not to sue them for wrongful termination. It is wise to have an attorney review this document before you sign it.
- Consult with an Employment Attorney: If you suspect you were terminated for an illegal reason, a lawyer can help you determine if you have a case. They can guide you through the process of gathering evidence, such as emails, performance reviews, and witness testimony. They can also help you file a complaint with the EEOC or other relevant government agencies, which often have strict deadlines.
While the high-stakes legal drama surrounding a presidential appointment is a world away from a typical workplace, it is a valuable lesson in the importance of understanding your rights. Knowing the difference between at-will and for-cause employment, and understanding the protections that exist for you, is one of the best ways to safeguard your financial and professional future.