What constitutes Wrongful Termination in California?


California is an at-will employment state. That is, unless a legally recognized exception applies, an employee can be fired, or an employee can quit, for any reason or no reason.

LEGALLY RECOGNIZED EXCEPTIONS TO AT-WILL EMPLOYMENT

Express Contract: If the employee has a written contract for a specified period of time, or cannot be fired except for specified reasons, the court will enforce the contract. The contract can be written or oral. If the contract is for more than one year, it must be written. If it is an oral contract, it is tough to prove. Absent a disinterested witness, the existence and terms of an oral contract will usually boil down to a credibility contest between the employer and the employee.
Implied Contract: The parties, by their conduct, evidence an agreement not to terminate without good cause. Conduct would include an employee handbook setting forth termination and disciplinary procedures, the employer’s actual practices, ongoing dealings with the employee or with other similarly situated employees. However, if the handbook or other document furnished to the employee states that the employment is at will, this exception does not apply. This exception is also extremely difficult to establish if the employment relationship has been short (under two years).
Per Se Statute: If there is a specific law that says an employee cannot be terminated, that law will apply. Examples: time off for voting, jury duty, court appearance, subpoena, off duty political activity, refusal to buy employer’s products or services, or bankruptcy.
Unlawful Discrimination: A California employer of five or more persons cannot discharge an employee because of race, gender, religion, marital status, pregnancy condition (includes abortions) family status (number of children), age, national origin, sexual orientation, physical or mental handicap, or medical condition. Discrimination for any other reason is perfectly legal.! Example: An employer can discriminate against smokers. Sexual (or other) harassment falls under this category, when an employer or the agent thereof either conditions any aspect of the employment relationship based on sexual services. This applies to all employment relationships regardless of the number of employees. Independent contractors are also included.
Whistle Blower: The employee has reported the employer’s suspected illegal conduct to a government agency, or has appeared as a witness against the employer, and the employee is fired as a result. It must involve a report to a government agency or participation in a legal proceeding of some kind (civil, criminal, legislative, or administrative).
Refusal to do an illegal act: The employee is ordered to do something unlawful, the employee refuses, and the employee is fired as a result. It must involve a written law or regulation, not the policies of the employer or “good morals.”
Special Exception for Workers Compensation: An employer cannot discriminate in any manner against an employee who has presented a claim, made known an intention to do so, or has appeared as a witness in compensation proceedings. This is handled by a WC Judge and not in the civil system.

REASONABLE EMPLOYER INVESTIGATIONS

Many questions involve a situation where an employer has a permissible reason for termination, but the employee claims the facts on which the employer is basing the action are “not true.” This scenario does not create an exception. All that is necessary is that an employer conduct a “reasonable investigation.” A perfect investigation is not required.

EMPLOYERS LIE TO GET AROUND THE LAW!

In analyzing any wrongful termination case, be aware that employers don’t always expressly state why they terminate someone, or they make up another reason to get around the law. Judges and juries do see through that. The most significant fact is the length of time between the act and the firing. The shorter it is, the more favorable it is to the employee. Also favorable to the employee is an unblemished discipline prior record, promotions, raises, favorable comments from clients, and similar.

DISCLAIMER

This information is not intended as a complete statement of the law of wrongful termination, but is a summary of California law in this area. Consult our office with specific questions.