Legal Question in Employment Law in Washington

I am assuming you have no formal ownership interest in the business. You really have two separate issues here.

First, your employer can terminate you for any reason or for no reason at all, so long as it is not an illegal reason (such as discrimination on the basis of your membership in a protected group.) The only exception would be if you had an employment agreement that stated otherwise.

The second issue concerns your qualification for unemployment benefits. About the only thing you can do is document everything as well as you can. If they terminate you on the basis of false accusations, the best way to protect your interests is to be very proactive about the Employment Security application process. Apply for benefits, and if you are denied on the basis of your employer's accusations, get an attorney at that time. Legally, you may appeal on your own and go through the hearing process on your own, but the hearing process is your ONE CHANCE to get evidence into the record, so you want to make sure that is done correctly. (Many people come to me after they have lost the hearing, and by then it is usually too late to salvage their cases.) If your application is denied, follow up without delay, because the window to appeal is very short.

By the way, if you have been an effective employee, perhaps a competitor would be smart to snap you up. If that happens, go without regrets, but just be careful not to back-solicit your former employer's customers or otherwise divulge trade secrets, or the former employer could make your life miserable in court under the Uniform Trade Secrets Act.