At-will employment is the standard for California workers. What this means is that employers and employees can end the work relationship at any point, without notice, if termination isn’t based on an illegal reason. As there are circumstances where at-will employment doesn’t apply, it’s important to know the difference between wrongful termination and at-will employment.

Understanding At-Will Employment

At-will employment is the default rule that covers employee and employer relationships in many states, including California. It means your employee can terminate your position for any reason and at any time. The caveat is that the reason cannot be illegal.

On the other hand, you’re allowed to leave your job without notice, too. You’re not obligated to provide two weeks’ notice unless you have an employment contract in place that states you will give notice matching the contract’s specified amount of time.

At-will employment has several key points:

• Both you and your employer can end your work relationship at any time.
• Your employer isn’t legally obligated to tell you why you’re being terminated.
• Written employment contracts can impact at-will employment rules.
• If you don’t have an employment contract or collective bargaining agreement, at-will employment rules are in place.

Despite that, there are cases where at-will employment crosses the line into wrongful termination.

What Makes a Termination “Wrongful”

When an employer violates the law when terminating an employee, it’s known as wrongful termination. While at-will employment allows an employer to end an employee’s position within the company, it cannot be for a reason that violates state or federal laws or regulations. Wrongful terminations occur in these areas.

1. Breach of an Implied Contract

An implied contract is one where rules or terms are not written out or even verbal, but they’re understood to be the case. Implied contracts are harder to prove, but they happen and can create wrongful terminations. 

For example, you leave your position after receiving an offer at a new company that doubles your current pay and says that this position is certain to last for a minimum of five years. Six months later, they terminate you. There was an implied contract stating your new job was going to be there for several years.

You’ve done the same job for 20 years without any complaints or warnings, which is what your manager says is the most important part of keeping your job. A new worker is hired at a significantly lower wage and continues to receive warnings for tardiness. You learn your employment is terminated because the company doesn’t believe you’re a good fit. You have a valid complaint of wrongful termination.

2. Violation of the Covenant of Good Faith and Fair Dealing**

This doesn’t occur as commonly as other violations or breaches, but it can happen. A covenant of good faith and fair dealing is violated when an employer terminates a position in order to avoid paying or providing a promised benefit. 

For example, your employer offered a $1,000 bonus to anyone who agreed to work Christmas Eve. You’re told the bonus will appear in your first paycheck in January. You’re terminated before January arrives, and your employer says you don’t get the bonus since you won’t have a paycheck.

3. Violation of Discrimination Laws

The California Fair Employment and Housing Act (FEHA) expands upon federal discrimination laws. Employers are prohibited from firing an employee based on the following protected characteristics.

• Age (40 and over)
• Gender identity, gender expression, and sex
• Genetic information
• Marital status
• Mental or physical disability, including medical issues, like cancer, that affect your physical or mental health
• Military and veteran status
• Pregnancy or childbirth, including breastfeeding protections
• Race, color, and national origin
• Religion
• Sexual orientation

You lose your job after turning 60, despite having no intention to retire and having an exemplary work record. A younger employee keeps coming in late and leaving early, with warnings given each time. It could be argued that you were fired due to your age.

You return from maternity leave and learn your employer has set up the conference room as your area for expressing milk each day. Employees are complaining that it’s disrupting their meetings. You lose your job because your employer claims your position is no longer necessary. As your termination follows complaints that violate pregnancy and childbirth laws, you could have a valid wrongful termination case.

4. Violation of Public Policy

If you lose your job for violating public policy, it’s illegal. You cannot lose your job for refusing to do something that is against public policy. Here are examples.

• Engaging in Protected Activities: You and your coworkers are talking about joining a union. Your company says that if you do, you’ll all be terminated. That’s illegal.
• Exercising Your Legal Right: You’ve been summoned for jury duty, but you’re told that you cannot have the time off. You perform your civic duty and lose your job. That’s a violation of your rights.
• Refusing to Engage in Illegal Activities: Your employer asks you to fill out reports that equipment was maintained, even though you know it wasn’t. You refuse to falsify the records and are told to pack your belongings the next day. That’s wrongful termination.
• Reporting Unsafe Conditions or Illegal Activities: Whistleblowing is protected. Your company’s air filtration system stopped working, so paint fumes build up. You report it to OSHA when your company refuses to fix them. You lose your job for reporting them, but that’s illegal, and you need to file a wrongful termination complaint.

Steps for California Employees to Take if They Believe Their Rights Are Violated

What do you do if you believe your termination was illegal? 

1. Gather Evidence

Start by collecting as much documentation as possible. Keep written accounts of discussions you had and date and time them. Keep copies of emails, both stored in the cloud and printed copies. Save performance reviews and any letters of commendation. 

If you have an employment contract, have a printed copy ready. You don’t want to rely on online copies, as you may lose access to them. Get names of any possible witnesses to the situation.

2. File a Complaint

Employment discrimination statutes give you a limited time to file a claim. Generally, it’s two or three years, but claims filed with the Equal Employment Opportunity Commission (EEOC) have a shorter statute of limitations.

• Discrimination, Retaliation, and Whistleblowing: 3 years
• Violation of Public Policy: 2 years
• EEOC: 300 days

3. Seek Legal Advice

California is an at-will employment state, but wrongful termination happens more often than you might think. Depending on the reason for your termination, your employer could have terminated your position illegally. 

If you believe that your employer is in the wrong, reach out to Shegerian Conniff for a free consultation. We’ll help you determine if you have a valid complaint and the best steps to take if your rights were violated. Reach us online to talk to an expert in employment law and wrongful termination.