Wrongful Termination for Refusing to Commit an Illegal Act in Arkansas (Public Policy Exception)

Getting fired from your job is always a stressful experience, but being fired specifically because you refused to do something illegal is infuriating. Arkansas is an "at-will" employment state, which generally means your boss can fire you at any time, for almost any reason-like wearing a blue shirt to work or simply because they do not like your personality.

However, the law draws a hard line when it comes to criminal activity. Your employer absolutely cannot force you to break the law to keep your job. If you were terminated for doing the right thing, you have the right to fight back. We encourage you to use our US Lawyers Directory to connect with a tough Arkansas employment attorney who can hold your former employer financially accountable.

The Public Policy Exception to At-Will Employment

In Arkansas, the courts recognize a powerful legal concept known as the "public policy exception" to the at-will employment doctrine. This means that if the reason for your firing violates a well-established public policy of the state, the termination is illegal.

The most obvious violation of public policy is firing an employee for refusing to commit a crime. If your manager tells you to break a state or federal law, and you say no, terminating your employment is considered Wrongful Discharge in Violation of Public Policy. This is vastly different from a standard wrongful termination claim (which usually involves discrimination based on race, gender, or disability). Here, the focus is purely on the employer demanding illegal acts.

Common Scenarios of Illegal Termination in Arkansas

Unlawful demands can happen in any industry, from corporate offices in Bentonville to manufacturing plants in Jonesboro. Here are specific scenarios where employees are highly protected.

CDL Truck Drivers: Refusing to Violate Hours of Service (HOS)

Truck drivers face immense pressure to deliver freight on impossible deadlines. The Federal Motor Carrier Safety Administration (FMCSA) mandates strict Hours of Service limits to prevent fatigued driving. If a dispatcher in West Memphis orders a CDL driver to falsify their electronic logs or drive past their legal limit, and fires the driver for refusing, that trucking company is violating strong public safety policies and is liable for wrongful termination.

Accountants: Refusing to "Cook the Books"

Corporate bookkeepers and accountants handle sensitive financial data. If the owner of an Arkansas business demands that you hide revenue to commit tax evasion, falsify payroll records to avoid paying overtime, or commit insurance fraud, your refusal is protected. Firing you for refusing to participate in financial fraud triggers the public policy exception.

Bartenders and Servers: Refusing to Serve Minors

The hospitality industry is strictly regulated. Under Ark. Code Ann. § 3-3-202, it is a crime to sell or serve alcohol to anyone under 21. If a restaurant manager pressures a bartender to serve a minor-perhaps because the minor is a friend of the owner or a big tipper-and fires the bartender for refusing to break the state liquor law, the employee has a clear wrongful termination case.

Factory Managers: Refusing to Dump Toxic Waste

Arkansas is home to many large manufacturing and agricultural processing plants. If a plant manager refuses a direct order to illegally dump hazardous chemicals into a local river, bypassing EPA regulations or OSHA safety laws, the company cannot legally retaliate against them. Refusing to create an environmental hazard is strongly protected by Arkansas courts.

What to Do If You Are Fired for Saying No

If you are terminated for refusing an illegal order, you must act quickly. Document everything immediately. Write down the exact date, time, and details of the conversation where you were asked to break the law. If there are text messages or emails proving the demand, save them to a personal device.

Your attorney will typically draft a civil complaint pursuant to Ark. R. Civ. P. 8 alongside a Circuit Court Civil Cover Sheet and file the lawsuit against the employer in the local court, such as the Washington County Circuit Court, Fayetteville or the Craighead County Circuit Court, Jonesboro. You may also need to file a simultaneous report with the Arkansas Department of Labor and Licensing, Little Rock depending on the nature of the violation.

Potential Damages and Attorney Costs

Employment lawyers usually take these cases on a contingency basis, meaning they only charge a fee if you win a settlement or court judgment. Under Arkansas law established in Sterling Drug, Inc. v. Oxford, 294 Ark. 239 (AR Supreme Court 1988) and reaffirmed in Northport Health Services, Inc. v. Owens, 356 Ark. 630 (AR Supreme Court 2004) and TFS of Gurdon, Inc. v. Hook, 2015 Ark. App. 601 (AR Court of Appeals 2015), a wrongful discharge claim in violation of public policy sounds exclusively in contract rather than tort. Consequently, tort remedies such as emotional distress damages and punitive damages are strictly prohibited. Instead, the court is limited to awarding contractual damages:

Frequently Asked Questions (FAQ)