Texas Wrongful Termination for Refusing Illegal Acts: Understanding the Sabine Pilot Exception and Your Employee Rights
Doyle Dennis Avery LLP vs. Delect Foods of Tri-City LLC
Texas Wrongful Termination for Refusing Illegal Acts: Understanding the Sabine Pilot Exception and Your Employee Rights
When your employer orders you to commit a crime and then fires you for refusing, you have legal rights under Texas law. The Sabine Pilot exception protects employees from wrongful termination when they refuse to engage in criminal activity, including insurance fraud, false police reports, and other illegal acts.
Doyle Dennis Avery LLP recently filed a lawsuit in Harris County, Texas, on behalf of a client who was wrongfully terminated after refusing to file a false police report and commit insurance fraud. This case highlights a critical protection for Texas workers: employers cannot retaliate against employees who refuse to break the law.
If you believe you were wrongfully terminated for refusing to commit an illegal act, contact Doyle Dennis Avery LLP at 713-571-1146 for a free case evaluation.
Recent Case: Wrongful Termination After Refusing to Commit Insurance Fraud
The Incident That Led to Unlawful Retaliation
In February 2025, Doyle Dennis Avery LLP filed a petition against Delect Foods of Tri-City LLC on behalf of a former employee who was terminated for refusing to participate in criminal conduct. The case began when a vehicle crashed into a Pizza Hut location managed by the defendant company. The driver reported the accident and disclosed that she had no auto insurance coverage.
Following company protocol, our client immediately notified management and Human Resources about the incident. However, management made an illegal demand: they instructed our client to file a false police report claiming the accident was a “hit and run” to deceive the company’s insurance provider into covering the loss from the uninsured driver’s accident.
Standing Up Against Criminal Conduct
Our client recognized that this directive would require committing multiple crimes under Texas law. Filing a false police report violates Texas Penal Code § 37.08, which prohibits knowingly making false statements to law enforcement with intent to deceive. Additionally, providing false information to an insurance company to support a fraudulent claim violates Texas Penal Code § 35.02.
Rather than comply with these illegal orders, our client exercised her legal right to refuse. The company’s response was swift and retaliatory: just days after refusing to commit these criminal acts, our client was wrongfully terminated.
Legal Basis for the Lawsuit
The lawsuit relies on the well-established Sabine Pilot exception to Texas’s at-will employment doctrine. This legal precedent, established in Sabine Pilot Service, Inc. v. Hauck, 687 S.W.2d 733 (Tex. 1985), protects employees from termination when they refuse to perform acts that would expose them to criminal liability.
Understanding the Sabine Pilot Exception
What is the Sabine Pilot Exception?
Texas is generally an “at-will” employment state, meaning employers can fire employees for almost any reason or no reason at all. However, the Texas Supreme Court created an important exception in the Sabine Pilot case. This rule protects employees from being terminated solely for refusing to commit an illegal act.
The case involved an employee who was fired for refusing to pump ship bilges into waterways, which would have violated federal pollution laws. The Texas Supreme Court held that the termination violated public policy and created this crucial exception to at-will employment.
Requirements for a Sabine Pilot Claim
To succeed on a Sabine Pilot wrongful termination claim, employees must typically demonstrate:
- Clear illegal directive: The employer ordered the employee to perform a specific act that would constitute a crime
- Employee refusal: The employee refused to commit the illegal act
- Termination in retaliation: The employer terminated the employee because of their refusal
- Causal connection: A clear link exists between the refusal and the termination
Criminal Acts Protected Under Texas Law
The Sabine Pilot exception applies to various criminal violations, including:
- Fraud and false statements to authorities or insurance companies
- Environmental crimes and pollution violations
- Financial crimes such as embezzlement or tax fraud
- Safety violations that endanger workers or the public
- Evidence tampering or destruction
- Perjury or lying under oath
Criminal Acts Under Texas Law
Texas Penal Code § 37.08 – False Report to Law Enforcement
Under Texas Penal Code § 37.08, it is illegal to knowingly make a false statement to a law enforcement officer with intent to deceive. When an employer directs an employee to file a false police report, they are asking the employee to commit a Class B misdemeanor, which carries penalties including up to 180 days in jail and fines up to $2,000.
Texas Penal Code § 35.02 – Insurance Fraud
Texas Penal Code § 35.02 prohibits insurance fraud, including presenting false or misleading information to an insurance company. Insurance fraud penalties in Texas are severe:
- Under $2,500: State jail felony (180 days to 2 years)
- $2,500 – $30,000: Third-degree felony (2-10 years)
- $30,000 – $150,000: Second-degree felony (2-20 years)
- $150,000+: First-degree felony (5-99 years)
Employers who direct employees to commit insurance fraud place those workers at serious legal risk. The Sabine Pilot exception protects employees who rightfully refuse such directives.
Recognizing Unlawful Retaliation
Warning Signs of Retaliatory Termination
Employers may attempt to create paper trails or manufacture performance issues to disguise retaliatory termination. Warning signs include:
- Timing: Termination occurs shortly after refusing an illegal directive
- Pretextual reasons: The stated reason doesn’t match your actual performance history
- Sudden performance issues: Years of good performance followed by sudden criticism
- Inconsistent enforcement: Policies enforced against you but not others
- Hostile work environment: Harassment or isolation after your refusal
- Documentation discrepancies: Personnel files altered or negative information appears
What to Do If Asked to Break the Law
Immediate Actions to Protect Yourself
If your employer asks you to commit an illegal act:
- Refuse clearly: State your refusal in professional terms
- Document everything: Keep detailed records of the directive, dates, times, and witnesses
- Save communications: Preserve emails, texts, and memos related to the illegal directive
- Report internally: Use ethics hotlines or HR department if available
- Remain professional: Avoid confrontation even if pressured
After Termination: Protecting Your Rights
If terminated after refusing to commit an illegal act:
- Request written termination documentation
- File for unemployment benefits
- Preserve all evidence and communications
- Avoid posting on social media about your former employer
- Consult an attorney immediately
Don’t wait to protect your rights. Contact Doyle Dennis Avery LLP at 713-571-1146 for immediate legal guidance.
Damages Available in Wrongful Termination Cases
Economic Damages
Wrongful termination victims may recover:
- Lost wages from the date of termination
- Future lost earnings and earning capacity
- Lost benefits (health insurance, retirement, stock options)
- Job search expenses
- Relocation costs if necessary
Non-Economic and Punitive Damages
Beyond financial losses:
- Emotional distress and mental suffering
- Damage to professional reputation
- Loss of enjoyment of life
- Punitive damages for egregious employer conduct
- Attorney’s fees and court costs
Frequently Asked Questions About Wrongful Termination in Texas
1. What is the Sabine Pilot exception, and how does it protect me?
The Sabine Pilot exception is a Texas legal doctrine that protects employees from being fired solely for refusing to commit a criminal act. If your employer orders you to break the law and terminates you for refusing, you have grounds for a wrongful termination claim despite Texas being an at-will employment state.
2. How long do I have to file a wrongful termination lawsuit in Texas?
The statute of limitations for Sabine Pilot wrongful termination claims in Texas is generally two years from the date of termination. However, various factors can affect this deadline. It’s crucial to consult with an attorney as soon as possible to ensure you don’t lose your right to pursue compensation.
3. Can my employer fire me for reporting illegal activity?
No. Texas law protects whistleblowers who report illegal activity. If you report violations to appropriate authorities or internally within your company, your employer cannot retaliate by terminating you. This protection applies to reporting safety violations, environmental crimes, financial fraud, or other illegal conduct.
4. What should I do immediately after being wrongfully terminated?
Document everything related to your termination, including the stated reason and witnesses present. Request written confirmation of your termination. File for unemployment benefits. Preserve all emails, texts, and documents. Avoid posting on social media about your former employer. Contact an experienced wrongful termination attorney immediately.
5. Do I need proof that my employer asked me to commit a crime?
While direct evidence such as emails is helpful, it’s not always necessary. Many illegal orders are given verbally. Circumstantial evidence, witness testimony, patterns of conduct, and the timing of your termination can all support your claim. An experienced attorney can help build your case even without written directives.
6. Can I be fired for refusing to lie to customers or clients?
No, you have protection. If your employer orders you to commit fraud, make false representations, or engage in deceptive business practices, you can refuse without fear of lawful termination. The Sabine Pilot exception protects employees who refuse to participate in fraudulent conduct.
7. What if my employer claims I was fired for poor performance?
Employers often try to disguise retaliatory terminations by claiming performance issues. An attorney can investigate whether the justification is pretextual by examining: timing of termination, your actual performance history, whether company policies were followed, inconsistent enforcement of standards, and sudden documentation of problems after you refused illegal conduct.
8. How much is my wrongful termination case worth?
Case value depends on multiple factors: your salary and benefits, length of employment, difficulty finding comparable work, emotional distress severity, age and career prospects, egregiousness of employer conduct, and available evidence. Cases can range from tens of thousands to hundreds of thousands of dollars. During a free consultation, an attorney can provide evaluation based on your specific circumstances.
9. Will I have to go to court, or can my case settle?
Many wrongful termination cases settle before trial, but you should be prepared for litigation. Having an attorney willing to take your case to trial often results in better settlement offers. Your attorney will advise you on settlement offers and whether they adequately compensate you for your losses.
10. Can my employer force me to sign an arbitration agreement or release of claims?
If you’ve already been terminated, don’t sign any documents without consulting an attorney. Many employers offer small severance payments in exchange for releasing all legal claims. These releases can prevent you from pursuing rightful compensation. Contact a lawyer immediately before signing anything related to your termination.
Related Resources and Employee Rights Information
Additional Practice Areas
Doyle Dennis Avery LLP handles various employment and personal injury matters:
- Workplace Discrimination: Claims based on race, sex, age, disability, religion, or national origin
- Sexual Harassment: Hostile work environment and quid pro quo harassment cases
- Wage and Hour Violations: Unpaid overtime and minimum wage violations
- Maritime and Offshore Injuries: Jones Act claims for injured seamen and offshore workers
- Insurance Bad Faith: When insurance companies wrongfully deny legitimate claims
Important Resources
- Texas Workforce Commission: Information on unemployment benefits and workplace rights
- Equal Employment Opportunity Commission (EEOC): Federal discrimination complaints
- Occupational Safety and Health Administration (OSHA): Workplace safety protections
Contact Doyle Dennis Avery LLP Today
Free Case Evaluation
If you believe you were wrongfully terminated for refusing to commit an illegal act, time is critical. The attorneys at Doyle Dennis Avery LLP offer free, confidential case evaluations. During your consultation, we’ll:
- Review the circumstances of your termination
- Analyze the strength of your potential claims
- Explain your legal rights and options
- Answer questions about the legal process
- Discuss our contingency fee arrangement
Why Choose Doyle Dennis Avery LLP?
- Proven track record: Successful results in wrongful termination cases
- Client-focused approach: Personalized attention throughout your case
- No upfront costs: We work on contingency—no fees unless we win
- Aggressive representation: Prepared to take your case to trial if necessary
- Experienced trial lawyers: Decades of combined experience in employment law
