Getting laid off is hard enough. But what if the explanation your employer gave doesn’t quite add up? Maybe you were told your position was being eliminated—yet someone else was hired to replace you shortly after. Or maybe you were the only one let go, despite strong performance and seniority.
While not every firing is unlawful, some terminations that are framed as “restructuring” or “downsizing” are actually rooted in discrimination or retaliation. Knowing the difference is crucial—because if your employer’s real reason for firing you was illegal, you may be entitled to compensation.
Here’s how to tell the difference between a legitimate layoff and a potential wrongful termination due to discrimination.
Texas Is an At-Will State—But Not Without Limits
Texas is an at-will employment state, meaning employers can generally terminate employees for any reason or no reason at all—as long as it’s not discriminatory, retaliatory, or in violation of a specific law or contract.
That’s an important distinction. Employers often attempt to cover unlawful terminations with vague or seemingly neutral explanations—like “budget cuts,” “performance issues,” or “organizational restructuring.” While these may be legitimate in some cases, they are also common excuses used to mask illegal motives.
Protected Characteristics: What the Law Prohibits
Both federal and Texas state laws prohibit employers from firing employees based on certain protected characteristics. These include:
- Race
- Color
- National origin
- Sex (including pregnancy, sexual orientation, and gender identity)
- Religion
- Disability
- Age (40 or older)
- Genetic information
Firing someone because of one of these traits—or even partially because of it—is illegal under the law. In many cases, employers won’t state the real reason outright, but there are signs to look for.
5 Warning Signs That Discrimination Played a Role in Your Termination
1. You Were the Only One in Your Protected Group Let Go
If your company downsized and you were the only person of your race, gender, age group, or other protected category to be fired, this could indicate discrimination—especially if others with less experience or worse performance were retained.
2. You Were Replaced by Someone Outside Your Protected Class
Let’s say you’re a 62-year-old employee with years of good performance reviews, and you’re laid off due to “restructuring.” Two months later, your former job is filled by someone in their 30s. That may suggest age discrimination, especially if your employer had no objective business reason for the decision.
3. You Had Recently Filed a Complaint or Requested Leave
If you had recently:
- Filed a complaint of harassment or discrimination
- Requested reasonable accommodations for a disability
- Taken or requested leave under FMLA
- Participated in an internal or government investigation
… and were then fired shortly after, your termination could be retaliatory, which is also illegal under state and federal law.
4. Your Performance History Doesn’t Support the Termination
Employers often try to justify terminations with claims of poor performance. But if your past performance reviews, emails, or awards show a consistent record of success, their explanation may be false—or legally insufficient.
Documented evidence of good performance can be key in proving your firing was not due to job-related reasons.
5. The Timing Seems Suspicious
Timing often tells a story. For example, if you were terminated within weeks of disclosing a pregnancy, requesting medical accommodations, or reporting discrimination, it may indicate that your protected activity was the real reason for your firing.
While employers don’t always act immediately after a triggering event, a close timeline can raise red flags.
Downsizing vs. Pretext: How Employers Mask Discrimination
A “pretext” is a false reason given to cover up an illegal one. In employment law, many discrimination cases revolve around proving that the employer’s stated reason for the termination was not the true motive.
Common pretexts include:
- Claiming budget cuts when only one person is laid off
- Saying there was a “reorganization” without eliminating other positions
- Using vague reasons like “not a good fit” or “poor attitude” without documentation
Proving pretext often requires a careful review of company records, comparative treatment of other employees, and a detailed timeline of events leading up to the termination.
What to Do If You Suspect Discrimination
If you believe your termination wasn’t truly due to downsizing or restructuring, take these steps:
- Request the reason for your termination in writing, if you haven’t already.
- Gather relevant documentation, including performance reviews, emails, and your personnel file if possible.
- Make a timeline of events, including any complaints or requests you made prior to termination.
- Avoid signing any severance agreements before speaking with an attorney.
- Consult with an employment lawyer experienced in wrongful termination and discrimination claims.
There are strict deadlines to file claims under federal and Texas law—often as little as 180 days—so don’t wait too long to seek legal advice.
Final Thoughts
Employers often use the term “downsizing” as a catch-all explanation for firings. But that doesn’t mean the reason is valid—or legal. If you suspect that your termination was actually based on your race, gender, age, disability, or another protected characteristic, you may have a discrimination or wrongful termination claim under Texas or federal law. We recommend wrongful termination lawyers Dallas.
