Employment Law Questions? Ask an Employment Lawyer.
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I am very sorry to hear that you were both let go. Were you in a union? Did you have a contract which expressly limited your employer's ability to terminate you but for "good cause"? I very much look forward to helping you on this matter.
Unfortunately, the general rule is that employment is "at will" absent union membership or an express agreement to the contrary. At will employment can be terminated for any reason not amounting to discrimination on the basis of a legally protected trait (race, religion, gender, etc.) or retaliation for engaging in certain forms of legally protected conduct (filing a wage claim, taking FMLA leave, etc.). It doesn't matter whether the basis for termination is fair, reasonable or even true. Thus, it would not be a violation of any law to terminate your sister due to suspected theft (even if this allegation had no merit whatsoever) or you for "harassment." The lack of proof does not matter. Since the employment relationship is at will, either the employer or the employee can terminate the relationship as they please. So, I'm afraid to say that based on the facts you have described, there would be no grounds for legal action against the employer, typically speaking.
I hope that you find this information helpful and am genuinely sorry if it is not what you were hoping to hear. Please do not hesitate to let me know if you have any questions or concerns regarding the above and I will be more than happy to assist you further.
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