## Facts

- Marilyn Jo Kelsay worked as an at-will employee at Motorola’s Pontiac, Illinois plant.
- Kelsay suffered a work-related thumb injury, received medical treatment, and returned to work the same day.
- After consulting counsel, Kelsay gave Motorola notice that she intended to pursue workers’ compensation benefits.
- Motorola’s personnel manager allegedly told Kelsay she would be adequately compensated without pursuing the claim and warned it was company policy to terminate employees who pursued workers’ compensation claims.
- Kelsay proceeded with her workers’ compensation claim, and Motorola discharged her.
- Kelsay alleged the discharge was retaliation for exercising her statutory right to seek workers’ compensation benefits.

## Issues

1. Whether Illinois recognizes a common-law tort claim for retaliatory discharge when an at-will employee is terminated for filing or pursuing a workers’ compensation claim.
2. Whether punitive damages may be awarded for retaliatory discharge on proof of sufficiently blameworthy employer conduct.

## Decision

- The Illinois Supreme Court recognized a narrow public-policy exception to employment at will and held that an employer is liable in tort for discharging an employee in retaliation for filing or pursuing a workers’ compensation claim.
- The Court held that punitive damages are available in an appropriate retaliatory discharge case where the employer’s conduct shows wantonness or reckless disregard for the employee’s rights.
- The Court rejected the argument that the absence of an explicit statutory remedy at the time barred a common-law claim, reasoning that the Workers’ Compensation Act reflected an established public policy that could be protected through tort law.
- The Court reinstated the circuit court’s judgment for Kelsay, including punitive damages, with compensatory damages limited to the amount remitted by the trial court.

## Legal Principles

- Illinois recognizes the tort of retaliatory discharge when an employee is fired for filing or attempting to file a workers’ compensation claim.
- Employment at will does not permit termination where the employer’s motive violates a clearly mandated public policy, including the policy embodied in the workers’ compensation system.
- A common-law remedy may be recognized to protect statutory public policy even when the statute does not expressly provide a civil damages action.
- Punitive damages may be awarded for retaliatory discharge when the employer’s conduct is outrageous, vindictive, or reflects a reckless disregard of the employee’s rights; compensatory damages are tied to actual loss such as lost wages.

## Conclusion

Illinois permits an at-will employee to sue in tort for retaliatory discharge when terminated for pursuing workers’ compensation benefits, and punitive damages may be imposed when the employer’s retaliatory conduct is sufficiently egregious to punish and deter interference with those statutory rights.


Kelsay v. Motorola, Inc., 74 Ill. 2d 172 (Ill. 1978)