Steps to challenge wrongful termination and insurance loss
1. Employment Classification: At-Will vs. Union Contract
Under U.S. law, most employment is considered at-will, meaning an employer can hire, fire, promote, or demote an employee for any reason — or no reason — except for reasons based solely on age, race, sex, disability, or national origin.
However, since you’re covered by a union contract, your employment rights are governed by the collective bargaining agreement (CBA), not at-will employment laws.
Your rights and remedies are therefore contractual, not statutory.
2. Wrongful Termination (Union Context)
Because United is unionized, “wrongful termination” in your case would fall under a breach of the union contract, not a traditional wrongful termination lawsuit.
Under your CBA, you are entitled to due process, which typically includes:
-
An investigation (which was conducted),
-
A pre-termination hearing to present your defense, and
-
The right to grieve and arbitrate the termination through your union.
If the union files a grievance on your behalf, that process must play out before you can take legal action against the company.
3. Arbitration and Court Review
If arbitration occurs and you lose, you may request a judicial review — but courts rarely overturn arbitration awards.
You can challenge it only under limited circumstances, such as:
-
Fraud or corruption (e.g., bribery or falsified evidence).
-
Arbitrator bias or misconduct (e.g., refusal to hear relevant evidence).
-
Exceeding authority (e.g., the arbitrator rewriting contract terms).
-
Award not based on the CBA (“fails to draw its essence” from the contract).
-
Violation of public policy (e.g., reinstating someone who committed a serious offense).
Otherwise, arbitration is final and binding.
4. Defamation Claim Against the Co-Worker
If your co-worker made knowingly false statements about you that caused your termination or reputational harm, you may have grounds to sue them personally for defamation.
That would be a civil lawsuit against the individual — not United Airlines.
You could seek money damages for:
-
Lost wages,
-
Emotional distress, and
-
Reputational harm.
You would need to prove that:
-
The statements were false,
-
They were made to others (e.g., HR or investigators),
-
They were not protected by privilege, and
-
They caused you measurable harm.
Under federal law (COBRA), your employer must offer continued health insurance coverage after termination.
Since United told you that your benefits would last through August but canceled them in July, that could violate COBRA notice or coverage requirements.
If you were not offered COBRA continuation coverage, or it was terminated prematurely, you can file a complaint with the:
U.S. Department of Labor (Wage & Hour Division):
www.dol.gov/agencies/whd/contact/complaints
Keep all written communication regarding your termination date, insurance cutoff, and HR correspondence — they will be key evidence.
6. Summary of Your Next Steps
- Continue the grievance/arbitration process with your union. That’s your primary route for reinstatement or back pay.
- Consult a local attorney about a potential defamation lawsuit against your co-worker.
- File a COBRA complaint if your insurance was terminated prematurely. Keep copies of all documents, emails, and union correspondence related to your termination.
Full Conversation

Hello — I’ve recently been laid off from United Airlines, and I’m trying to get started on a few things, such as a wrongful termination lawsuit, a cease and desist to the person who falsely accused me of actions that didn’t happen, getting my job back, and some type of complaint against the company for stating that my termination date was August 1 and that my medical insurance would be good until the end of August — when United actually terminated my insurance in July, before my termination.

I’m sorry to hear about your situation — it sounds very challenging. Can you please provide more details about the circumstances surrounding your layoff from United Airlines?

I don’t know.

Have you already taken any steps, such as filing a complaint or gathering evidence regarding your wrongful termination and the issues with your medical insurance?

We have a union, and they are also trying to get my job back.

Is there anything else the employment lawyer should know before I connect you? Rest assured, they’ll be able to help with your wrongful termination lawsuit.

Yes.

Hello, and welcome. I’m Law Educator, and I’m pleased to assist you today. Please note that this information is for educational purposes only and does not form an attorney-client relationship. Sometimes replies take a bit of time — thank you for your patience while I help you and others.
Was your termination based only on your age, race, sex, permanent disability, or national origin? What were you accused of? Is your union currently pursuing a grievance on your behalf?

I was accused of assault, and after a month-long investigation, United determined it was false. But they still terminated me because of a verbal confrontation I had with my colleague.

Good day — thank you for clarifying that. Here’s my detailed response.

1. Employment Classification: At-Will vs. Union Contract
Under U.S. law, most employment is considered at-will, meaning an employer can hire, fire, promote, or demote an employee for any reason — or no reason — except for reasons based solely on age, race, sex, disability, or national origin.
However, since you’re covered by a union contract, your employment rights are governed by the collective bargaining agreement (CBA), not at-will employment laws.
Your rights and remedies are therefore contractual, not statutory.
2. Wrongful Termination (Union Context)
Because United is unionized, “wrongful termination” in your case would fall under a breach of the union contract, not a traditional wrongful termination lawsuit.
Under your CBA, you are entitled to due process, which typically includes:
-
An investigation (which was conducted),
-
A pre-termination hearing to present your defense, and
-
The right to grieve and arbitrate the termination through your union.
If the union files a grievance on your behalf, that process must play out before you can take legal action against the company.
3. Arbitration and Court Review
If arbitration occurs and you lose, you may request a judicial review — but courts rarely overturn arbitration awards.
You can challenge it only under limited circumstances, such as:
-
Fraud or corruption (e.g., bribery or falsified evidence).
-
Arbitrator bias or misconduct (e.g., refusal to hear relevant evidence).
-
Exceeding authority (e.g., the arbitrator rewriting contract terms).
-
Award not based on the CBA (“fails to draw its essence” from the contract).
-
Violation of public policy (e.g., reinstating someone who committed a serious offense).
Otherwise, arbitration is final and binding.
4. Defamation Claim Against the Co-Worker
If your co-worker made knowingly false statements about you that caused your termination or reputational harm, you may have grounds to sue them personally for defamation.
That would be a civil lawsuit against the individual — not United Airlines.
You could seek money damages for:
-
Lost wages,
-
Emotional distress, and
-
Reputational harm.
You would need to prove that:
-
The statements were false,
-
They were made to others (e.g., HR or investigators),
-
They were not protected by privilege, and
-
They caused you measurable harm.
Under federal law (COBRA), your employer must offer continued health insurance coverage after termination.
Since United told you that your benefits would last through August but canceled them in July, that could violate COBRA notice or coverage requirements.
If you were not offered COBRA continuation coverage, or it was terminated prematurely, you can file a complaint with the:
U.S. Department of Labor (Wage & Hour Division):
www.dol.gov/agencies/whd/contact/complaints
Keep all written communication regarding your termination date, insurance cutoff, and HR correspondence — they will be key evidence.
6. Summary of Your Next Steps
- Continue the grievance/arbitration process with your union. That’s your primary route for reinstatement or back pay.
- Consult a local attorney about a potential defamation lawsuit against your co-worker.
- File a COBRA complaint if your insurance was terminated prematurely. Keep copies of all documents, emails, and union correspondence related to your termination.

Okay, so I’ll wait for the arbitration with my union. Even during arbitration, I can’t sue the company for wrongful termination? How do I begin to sue the person for defamation and for money for loss of employment? Also, my termination date was August 1, but United told me my health care benefits would last until the end of August. Yesterday, I found out they terminated my benefits on July 31.

You are correct — you cannot sue United for wrongful termination until you’ve completed the union’s arbitration process. As for defamation, you can sue the individual in civil court with the help of a local attorney.

Got it. Thank you so much.

You’re welcome! I hope this helps clarify your rights and next steps. If you have more questions later, don’t hesitate to reach back out.
