There are four significant ways that a wrongful layoff may occur. This ways are described in federal law, and may not be voided even when no contract exists between employee and employer. One however is only relevant to individuals with an existing contract. No company may release an employee in a manner that breaches the contract. All forms of contracts are recognized, including written, implied and verbal. It is also wrongful to base a layoff on discrimination. This includes gender, age, sexual orientation, race or ethnicity. No employer may release an employee for refusing to commit an illegal act demanded by the company. When an employee displeases their employer through lawful and contractually acceptable actions, termination is wrongful. This is described as retaliation.