Constructive discharge is a term used in employment law when an employee resigns from their position because of hostile work conditions created by the employer.
Also known as constructive dismissal, it occurs when an employee feels forced to quit because of intolerable conditions. While the employee technically resigns, the circumstances surrounding their departure are such that it can be considered a termination rather than a voluntary resignation.
For instance, if an employer imposes unreasonable expectations on an employee in an effort to push them to resign, those actions could constitute constructive dismissal. In these cases, the employer intentionally creates a work environment so unpleasant that the employee feels their only option is to leave, avoiding the unpleasantness of firing the employee directly.
If the employee later files a legal claim, the court may treat a constructive discharge as an involuntary resignation, which can serve as the basis for a wrongful termination lawsuit.
Employment Law and Constructive Discharge Claims
In the United States, there is no specific federal or state law that directly bans constructive discharge, but it can be considered a form of termination by the employer.
This means that an employee can resign and claim constructive discharge, arguing they were effectively fired due to illegal reasons, such as discrimination, retaliation, or being asked to do something illegal. These situations can lead to claims of discrimination, harassment, retaliation, or other illegal practices under federal or state labor laws, including:
- Family and Medical Leave Act (FMLA)
- Equal Pay Act (EPA)
- Americans with Disabilities Act (ADA)
- Age Discrimination in Employment Act (ADEA)
- Title VII of the Civil Rights Act of 1964
- And State Employment Laws
Elements of a Constructive Discharge Claim
When cases involving constructive discharge claims are brought before the court, the burden of proof lies with the employee.
This is good news for employers because employees can’t just quit and say they were forced to leave without showing proof. The employee needs to show that the work conditions were so bad that any reasonable person in their position would have had no choice but to resign.
The Equal Employment Opportunity Commission (EEOC) looks at three key points to decide if constructive discharge happened:
- A reasonable person in the employee’s position would have found the working conditions intolerable.
- The employer’s actions created those intolerable conditions.
- The employee’s resignation directly resulted from those bad conditions.
To back up their claim, the employee must also prove:
- The employer knew about the bad conditions.
- The employer intended to force the employee to quit.
- The conditions were so bad that even a reasonable person would have quit.
- There was a pattern of serious problems, not just a one-time issue.
A single bad incident or evaluation usually isn’t enough to prove intolerable conditions, but in some cases, one serious event could be enough.
What Are “Intolerable Working Conditions”?
The Employer’s Knowledge
Employees are generally required to tell their supervisor, management, or human resources about intolerable working conditions. If the employee doesn’t report the issue and the employer doesn’t know about it, the employee usually won’t win a constructive discharge claim.
To prove that they were forced to quit because of the employer, the employee must show that the employer:
- Intended to create or maintain an unbearable work environment.
- Knew about the bad conditions.
- Did nothing to fix the problem.
Employers may be able to protect themselves from legal action by addressing and fixing problems when employees report them.
If you are an employer facing charges from an employee who claims they were harassed or discriminated against based on race, gender, religion, sex, nationality, age, or disability, and that it led to their resignation, contact Treaty Oak for a complimentary consultation. Reach us by email or call 512-298-2346 today.
