Relocating for a new job can require a major financial and personal commitment. An employee may resign from another position, move a family across state lines, sign a long-term lease and spend thousands of dollars getting established. Being fired shortly afterward can therefore cause far more disruption than an ordinary job loss.
You may be able to sue an employer after relocating for a job, but relocation by itself does not make the termination unlawful. The answer depends on what the employer promised, whether the job was at will, why the employee was fired and whether the employee reasonably relied on false or enforceable representations.
A written employment agreement, unpaid relocation benefits, misleading recruitment statements, discrimination or retaliation could potentially support a legal claim. Without one of these circumstances, an employer may still be permitted to terminate a recently relocated employee.
An Example of Relocating and Then Being Fired
Consider an employee living in Georgia who accepts a new position in Dallas, Texas. During the hiring process, the manager says the employee must relocate because the position requires attending the office at least one or two days each week.
The employee agrees and requests several weeks to complete the move. The employee’s spouse leaves a job in Georgia, the family signs a 12-month lease in Texas and they pay the expenses associated with moving to another state.
Approximately seven weeks after the employee starts the position, the manager unexpectedly requests a meeting, raises concerns and terminates the employee.
The circumstances may appear extremely unfair. However, the financial consequences of the move do not automatically create a wrongful-termination claim. The employee would need to examine the employment documents, recruitment statements and actual reason for the firing.
Does At-Will Employment Permit This Type of Termination?
Most private-sector employment in the United States is presumed to be at will unless a contract, collective bargaining agreement or applicable law provides otherwise.
At-will employment generally means that an employer may end the employment relationship at any time for a lawful reason—or sometimes for no stated reason—with or without advance notice. An employee likewise may resign at any time.
The Texas Workforce Commission explains that, without a statute or express agreement to the contrary, either party may terminate an employment relationship with or without notice.
As a result, a Texas employer may be legally permitted to fire a recently relocated employee because:
- The employee did not meet performance expectations.
- The company eliminated the position.
- The department experienced budget reductions.
- Management reorganized the business.
- The employer concluded that the employee was not a suitable fit.
- The company’s operational needs changed.
At-will employment does not give employers permission to break a contract or terminate someone for an illegal reason. Employers remain subject to federal and state laws covering matters such as discrimination and retaliation.
An employee should review the offer letter carefully. Many offer letters expressly state that employment is at will and that the offer does not guarantee employment for a particular period.
When Could You Sue an Employer After Relocating?
The circumstances surrounding the hiring and termination determine whether an employee may have a viable claim. Several legal theories could potentially apply.
The Employer Breached an Employment Contract
A breach-of-contract claim may be possible when the employer made an enforceable commitment about the length or conditions of employment and then failed to honor it.
Suppose an employment contract guarantees one year of employment unless the employee commits specified misconduct. If the employer terminates the employee after seven weeks for a reason not permitted by the agreement, the employee may have grounds to pursue a contractual claim.
Documents that may contain enforceable terms include:
- A signed employment contract
- The formal offer letter
- A relocation agreement
- A severance agreement
- Compensation and benefits documents
- Emails containing specific employment promises
- Policies expressly incorporated into the contract
General recruiting statements usually present a more difficult case. Comments such as “You will have a great future here” or “This is a stable position” may be too vague to create an enforceable promise.
A written commitment stating that employment will continue for a defined period or may be terminated only for specified reasons is generally more significant.
The Employer Failed to Honor a Relocation Agreement
A relocation agreement may create obligations separate from the employee’s continued employment.
For example, an employer may promise to pay for:
- A moving company
- Temporary accommodation
- Travel to the new location
- Lease termination expenses
- Storage costs
- Home-sale assistance
- A relocation allowance
- Reimbursement after the employee begins work
The employer may still owe an agreed relocation payment even if it legally terminated the employee. The answer depends on the language of the agreement, including any conditions, repayment provisions or minimum-employment requirements.
Some agreements require an employee to repay relocation assistance after resigning or being terminated within a particular period. The wording should be reviewed carefully because the repayment obligation may differ depending on whether the employee resigned, was fired for cause or lost the position through no fault of their own.
The Employee Relied on a Clear Promise
Promissory estoppel may provide a remedy in some states when a person reasonably relies on a clear promise and suffers a measurable loss because the promise is not honored.
The Legal Information Institute at Cornell Law School explains that the doctrine may permit recovery when a person reasonably and detrimentally relies on a promise and enforcement is necessary to avoid injustice.
In an employment relocation case, the employee may need to establish that:
- The employer made a clear and definite promise.
- The employer could reasonably expect the employee to rely on it.
- The employee did rely on the promise.
- That reliance caused a financial loss.
- Some form of relief is necessary to avoid an unjust result.
The most difficult issue may be identifying the actual promise. Requiring someone to relocate does not necessarily guarantee continued employment. If the offer letter clearly states that employment is at will, a court may conclude that the employee could not reasonably rely on an expectation of guaranteed employment.
The situation may be different if the employer promised a minimum term, guaranteed relocation reimbursement or expressly assured the employee that a known event would not threaten the position.
Promissory-estoppel rules vary considerably among states, particularly in employment cases. A lawyer must evaluate the exact language and circumstances involved.
The Employer Misrepresented the Job
A fraud or misrepresentation claim may become relevant when an employer makes a materially false statement to persuade someone to accept a job and relocate.
Possible examples include an employer falsely claiming that:
- Funding for the position had been secured.
- The position was permanent when its elimination had already been approved.
- No layoffs were planned when management had decided to close the department.
- The employee would receive relocation assistance that the company never intended to provide.
- The role involved responsibilities or compensation substantially different from what the employer actually planned.
- The company had obtained a necessary contract or client when it had not.
A change in business conditions after the employee starts working does not necessarily amount to fraud. The employee generally needs evidence that a material representation was false when made or that the employer made it without a reasonable basis.
The timing of internal decisions can be important. If management approved the elimination of the position before encouraging the employee to move, that fact could be more significant than an unexpected budget problem arising after the relocation.
The Employee Was Fired for a Discriminatory Reason
At-will employment does not permit termination based on an unlawful discriminatory reason.
Federal employment laws may protect qualifying employees against discrimination based on characteristics including:
- Race
- Color
- Religion
- Sex
- National origin
- Disability
- Age for workers protected by federal age-discrimination law
- Genetic information
State and local laws may protect additional characteristics or apply to employers not covered by a particular federal statute.
Evidence of discrimination could include:
- Discriminatory remarks by a manager
- A sudden change after the employer learns about a disability or pregnancy
- Different treatment of comparable employees
- Inconsistent explanations for the termination
- Performance complaints contradicted by written feedback
- A pattern of terminating members of a particular protected group
An employee usually must file a charge with the Equal Employment Opportunity Commission before bringing certain federal discrimination lawsuits.
The EEOC explains that a charge generally must be filed within 180 calendar days. That period may extend to 300 days when a state or local agency enforces a law prohibiting discrimination on the same basis. Different procedures and deadlines can apply in certain cases.
Attempting to resolve the dispute internally does not necessarily pause an EEOC deadline.
The Termination Was Retaliation
An employer may also violate the law by firing an employee for engaging in legally protected activity.
Depending on the circumstances and applicable law, protected activity could include:
- Reporting suspected workplace discrimination
- Participating in a discrimination investigation
- Requesting a reasonable disability accommodation
- Reporting certain wage violations
- Raising protected workplace safety concerns
- Using legally protected family or medical leave
- Reporting conduct covered by a whistleblower law
- Refusing to commit an illegal act
A close connection between the protected activity and termination may be relevant. However, timing alone does not always prove retaliation.
Employees should preserve the original complaint, the employer’s response, performance records and any communications showing that their treatment changed after the protected activity.
Does Being Fired Soon After Moving Prove Wrongdoing?
Being fired seven weeks after relocating may create suspicion, but the short timeline does not establish an unlawful termination by itself.
Timing becomes more meaningful when combined with other evidence. Warning signs may include:
- The employer knew before the move that it would eliminate the position.
- Managers concealed financial or operational problems.
- The employee received positive feedback shortly before being fired for alleged poor performance.
- The employer provided different explanations at different times.
- No one informed the employee about the alleged problem before termination.
- The company immediately replaced the employee.
- The firing followed protected activity.
- The employer made specific promises to overcome the employee’s concerns about relocating.
The employee should create a timeline beginning with the first recruitment communication and ending with the termination. Dates can help show when promises, business decisions and performance concerns arose.
What Damages Might Be Available?
The losses an employee may recover depend on the legal claim and governing state law. Potential damages could include:
- Moving-company charges
- Transportation expenses
- Temporary lodging
- Storage costs
- Lease cancellation charges
- Lost security deposits
- Unpaid relocation benefits
- Lost wages
- Lost employment benefits
- Certain costs associated with selling or maintaining a former home
- Other documented expenses caused by reasonable reliance
Not every loss will necessarily be recoverable.
For example, a spouse’s lost income may be difficult to claim because the spouse was not a party to the employment relationship. A court may also consider that loss too indirect or difficult to calculate.
Expected future wages may be disputed when the position was at will because the employer did not promise employment for a particular period. Depending on the claim, reliance expenses such as moving and lease costs may be easier to connect to the employer’s alleged promise than years of anticipated earnings.
What Evidence Should the Employee Preserve?
An employee considering a claim should preserve lawfully obtained copies of relevant records as soon as possible.
Important evidence may include:
- The original job advertisement
- The offer letter
- The employment contract
- The relocation agreement
- Emails and messages with recruiters
- Communications with the hiring manager
- Statements about the position’s stability or expected duration
- Relocation instructions
- Moving invoices and receipts
- Travel and temporary-housing expenses
- The new lease
- Records showing when a spouse left employment
- Performance reviews
- Positive messages from supervisors
- Written warnings
- The termination letter
- Meeting notes and calendar entries
- Pay statements and benefit information
- Severance documents
Employees should not take confidential business information, client records, trade secrets or files they are not authorized to possess.
It is also important to preserve evidence promptly because legal claims have deadlines. The Top City Lawyers guide explaining the statute of limitations discusses how waiting too long can prevent a person from pursuing an otherwise valid claim.
What Should You Do After Being Fired?
Request the Reason for Termination
Ask the employer to provide the reason for the termination in writing. Not every employer is required to provide a termination letter, but requesting one may clarify whether the decision involved performance, restructuring or another issue.
Keep the request professional and avoid making accusations before reviewing the available evidence.
Review the Employment Documents
Read the offer letter, employment contract, relocation agreement, handbook and severance proposal carefully.
Look for provisions addressing:
- At-will employment
- Guaranteed employment periods
- Grounds for termination
- Relocation reimbursement
- Repayment obligations
- Severance benefits
- Arbitration
- Choice of state law
- Deadlines for accepting or rejecting an agreement
A choice-of-law clause may identify which state’s law governs a contractual dispute.
Do Not Rush to Sign a Severance Agreement
A severance agreement may require the employee to waive potential legal claims. It may also contain confidentiality, nondisparagement, arbitration or relocation-repayment provisions.
The employee should understand what rights are being released and how much time is available before signing.
Calculate Every Relocation Expense
Prepare a list of the financial losses connected with the relocation. Include the date, amount, purpose and supporting receipt for each expense.
It can help to separate the losses into categories:
- Direct moving expenses
- Housing expenses
- Travel expenses
- Unpaid employer benefits
- Lost compensation
- Family-related losses
A documented calculation will generally be more useful than an unsupported estimate.
Apply for Unemployment Benefits
An employee may qualify for unemployment benefits after being fired, even when the employer says the termination involved unsatisfactory performance.
In Texas, an employer that initiated the separation generally must establish work-related misconduct when disputing the former employee’s eligibility. A disagreement over performance is not automatically the same as misconduct.
Employees should apply promptly and answer questions accurately.
Speak With an Employment Attorney
A move from Georgia to Texas can raise questions about which state’s laws govern the dispute.
Factors may include:
- Where the employee performed the work
- Where the offer was made and accepted
- Where the alleged promise occurred
- Where the employee suffered the loss
- Where the employer is located
- Whether the agreement contains a choice-of-law provision
An employment attorney can review the actual communications and determine whether the facts may support a contract, promissory-estoppel, misrepresentation, discrimination or retaliation claim.
Could the WARN Act Apply?
The federal Worker Adjustment and Retraining Notification Act may require advance notice before certain qualifying plant closings and mass layoffs.
The U.S. Department of Labor explains that WARN is intended to provide advance notice in covered large-scale employment losses.
The law generally would not apply to the individual termination of one recently hired employee. It may become relevant if the firing was part of a qualifying mass layoff involving a covered employer and employment site.
Frequently Asked Questions
Is it illegal to fire someone immediately after relocation?
Not automatically. An at-will employer may generally terminate an employee after relocation for a lawful reason. A potential claim may exist if the employer violated a contract, made an actionable false statement or terminated the employee for an unlawful reason.
Does requiring relocation guarantee continued employment?
No. A requirement to relocate establishes where the employee must work, but it does not necessarily guarantee employment for a minimum period. Any at-will language or written promise in the offer documents will be important.
Can an at-will employee still sue an employer?
Possibly. At-will status does not prevent claims based on discrimination, retaliation, fraud, unpaid relocation benefits or another independent legal violation. It can, however, make it more difficult to argue that the employer promised continued employment.
Can moving expenses be recovered?
Moving expenses may be recoverable if the employee establishes a valid claim and shows that the expenses were a foreseeable result of relying on the employer’s promise or misrepresentation. Receipts and written communications can help prove the loss.
Can the employee recover the cost of breaking a lease?
Lease-termination charges and lost deposits may potentially be included as reliance damages. Recovery depends on state law, the underlying legal claim and whether those costs were a foreseeable consequence of the relocation.
Does a verbal employment promise count?
A verbal statement can matter, but it may be difficult to prove and may not be sufficiently definite. Witnesses, follow-up emails and the exact language used can affect how much weight it carries.
What if the employee’s spouse quit a job because of the move?
The spouse’s lost income demonstrates the seriousness of the family’s reliance, but recovering that income may be difficult. The employer may argue that the loss is indirect, unforeseeable or outside the employment agreement.
How long does an employee have to take legal action?
The deadline depends on the claim and the state. Some administrative claims must be filed within months, while other contract or fraud claims may have longer limitation periods. Employees should obtain legal advice promptly instead of assuming that every claim has the same deadline.
Legal Note: This article provides general educational information and does not constitute legal advice. Employment, contract and filing-deadline rules vary by state. Anyone dealing with a relocation-related termination should consult a qualified employment attorney about the specific circumstances.