Wrongful Discharge of Independent Contractors: A Source-Derivative Approach to Deciding Who May Bring a Claim for Violation of Public Policy

Michael Smith is employed as a bookkeeper with Acme Company. He has no contract limiting Acme's right to terminate him. Some of Acme's customers are suing Acme for fraud, and Michael is subpoenaed to testify in the suit. A manager at Acme tells Michael that if he gives testimony harmful to the company, he will be discharged.

Michael testifies truthfully, and the next day he is fired. He sues Acme for wrongful discharge of employment.