If Big Co. wrongfully discharges Max, but later discovers that Max has been stealing petty cash, Big Co. can use this as an after-acquired evidence defense.

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A relatively new defense that employers have used successfully in wrongful discharge cases is called the after-acquired evidence defense. This defense is applied when an employer uncovers evidence, usually during the discovery process that reveals that the employer could have legitimately discharged the employee, even if the employee's claims of wrongful discharge prove to be true.

If Big Co Wrongfully Discharges Max, but Later Discovers That Max Has