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Judge rules that Sioux Falls man shouldn't have been fired for testifying at the Legislature

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Judge rules that Sioux Falls man shouldn't have been fired for testifying at the Legislature

Arthur J. Gallagher Co. fired executive who testified in favor of transparency for taxpayers

Jonathan Ellis
Mar 31, 2023
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A lawsuit filed by a Sioux Falls insurance executive who was fired after he testified in favor of a bill in the South Dakota Legislature will move forward after a judge refused to throw it out.

Arthur J. Gallagher & Co. had asked for a summary judgement in the lawsuit filed by Tim Donohue. The company argued that it could discharge Donohue because South Dakota is an at-will employment state, meaning employment in which there is not a contract setting out a specific term can be terminated by either party.

But U.S. District Court Judge Karen Schreier noted that the South Dakota Supreme Court has set out exceptions to at-will employment that make employers liable if they fire an employee for reasons set out in the exceptions. Employees can’t be fired for refusing to break the law, filing a work compensation claim or for whistleblowing. The South Dakota Supreme Court has also recognized a “public policy principle” that protects workers from discharge.

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