What Is Considered Wrongful Termination in California?

Wrongful termination in California may involve discrimination, retaliation, contract breaches, protected leave violations, or dismissals that violate public policy. Employees can review common examples, available remedies, evidence to preserve, and steps to take after an unlawful firing.

By Brad Nakase, Attorney

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Introduction

Our professions and occupations serve as our lifelines. To pay for most of what we want and need in life, we must work. When you’ve got a family, and they rely on you both emotionally and financially, this becomes even more essential. Terminating someone can be traumatic and lead to a downward spiral. Therefore, the majority of us who cherish our professions make an effort to avoid doing anything that could be detrimental. Many laws allow employers to fire you for any reason and without notice, except when there is an agreement in place.

A closer look at what is considered wrongful termination in California is important. There are indeed boundaries in place, and if an employer goes beyond those limits, it could result in your wrongful termination. In California, being wrongfully terminated often grants you the right to receive compensation and additional remedies.

Wrongful Termination in California

States have relatively different laws, rules, & regulations pertaining to wrongful termination. It is also known as wrongful discharge or wrongful dismissal. There are federal laws that govern wrongful termination in addition to state law.

Wrongful termination happens when, regardless of state or federal law:

  • The employer disobeys its own verbal or written policies or termination procedures.
  • The employer breaches state or federal law by terminating an employee.
  • The employer fosters a hostile workplace. It results in constructive termination. The employee is obliged to resign because the working conditions are unacceptable.

Most of the states follow at-will employment. When an employee is employed at will, neither the employer nor the employee is required to have a valid basis for ending their employment. But even in states wherein at-will work is accepted, an employee might still be wrongly terminated for any of the reasons mentioned above. It could be a breach of employer requirements or a violation of the law.

Wrongful Termination in California: Examples

Many employees wonder what is considered wrongful termination in California. It is not always simple to prove a wrongful termination. A situation that feels unjust may or may not qualify as wrongful termination. However, wrongful termination can occur in various forms. Below are some of the most frequent examples seen today.

1. Contract Violation

Contracts of employment are agreements that outline the terms, conditions, and benefits an employee will receive in return for their labor, such as income, paid time off, health insurance, retirement benefits, etc. To put it another way, the contract outlines what is required of the worker in exchange for their pay and other perks. To be enforceable, these agreements don’t need to be in writing. A wrongful termination of an employee could be seen as a violation of the contract.

2. Violations of Public Policy

When firing an employee would be against public policy, employers are prohibited from doing so. For instance, it is wrongful dismissal in contravention of public policy if an employer orders an employee to carry out an illegal act and then terminates them for declining to do so. Another instance would be if an employer forbade a worker from becoming part of a union and subsequently fired the worker for doing so. A few more examples:

  • Refusing to violate the law
  • Fulfilling a legal obligation
  • Using a legal right or entitlement
  • Reporting a potential legal violation that has an impact on the public

For example, it is illegal to fire an employee for seeking time off to serve on a jury because doing so is required by law. Additionally, you cannot be fired for refusing to engage in a crime (such as fraud) on your employer’s behalf.

The situation related to this breach ought to impact the general public, instead of concentrating only on the private interests of the worker and employer.

3. Discrimination

Employment discrimination occurs when an employee is fired, or a prospective employee is turned down for a position for any of these reasons.

  • Race
  • Age (over 40)
  • Ethnicity
  • Harassment
  • Skin color
  • Pregnancy
  • National Origin
  • Sex
  • Disability
  • Sexual Orientation
  • Sexual Harassment
  • Retaliation
  • Gender Identity
  • Genetic Information
  • Religion
  • Equal Pay/Compensation

The US Equal Employment Opportunity Commission created this list. Employers can’t fire an employee based on any of the above-mentioned traits. Some states provide extra safeguards against discrimination. For example, military personnel protection.

4. Whistleblowing

Workers may act in ways that their employer finds objectionable. An employee might learn that the organization is engaging in illicit operations. The employee notifies the appropriate authorities. The employer is culpable of wrongful termination if they fire an employee in retaliation for disclosing criminal activity.

5. FMLA Breach

FMLA gives workers up to twelve weeks of unpaid & employer-protected leave annually. Employees can require time off for family-related reasons. Birth of a child, adopting a child, and taking care of a family member with a serious illness are a few examples. They are eligible for the leave. An employee must not be fired by their employer for exercising their FMLA rights. It is against federal law & probably state law for an employer to fire an employee for taking leave. The leave is in accordance with the FMLA.

In California, losing your job shortly after availing family medical leave may not instantly bring legal issues to mind. Rather, you could notice changes in how your employer behaves or interacts with you. Employees often seek legal advice about FMLA wrongful dismissal due to medical leave if specific patterns arise consistently enough to trigger serious concerns.

A trend occurs when your boss declares that your position has been eliminated. This occurs shortly after you return from your leave. A warehouse or logistics employee returns, anticipating continuing the usual duties. They are notified that the company has been “restructured.” They do not belong to the team. The absence of prior indications that the job was at risk might signal a significant warning.

Sudden discipline after years of acceptable performance is one more trend. Upon returning to the workplace after being away due to medical leave, a disabled employee might encounter unfamiliar performance plans, formal reprimands, or harsh critiques. This adjustment might appear more as a wrongful termination strategy under FMLA rather than a typical performance appraisal if it occurs solely after a family medical leave.

6. Wage & Hour Conflicts

The FLSA lays out guidelines for paying salaries, including commissions & overtime compensation. The employer has participated in wrongful termination when it dismisses a worker for attempting to enforce the norms & rules set out by the FLSA.

7. Retaliation

Dismissal can be one way of revenge. When an employee takes leave under the FMLA, demands compliance with the FLSA, reports racial or sexual harassment, or reports discrimination centered around any of the listed protected qualities, their employer might terminate them. Retaliation is illegal. It may be brought as a distinct action against the company in addition to harassment & discrimination.

This also covers cases where a worker claims and complains about low wages, overtime pay, and/or infractions of rest and meal break policies.

Employees who submit claims with the Department of Industrial Relations for underpayment of salaries are shielded from retaliation. Additionally, employees are protected by the California Labor Code when they utilize their rights, whether for themselves or other staff members.

Avoiding Wrongful Termination in California

Employers ought to take proactive measures to stop wrongful termination from occurring within their organization. A valid wrongful termination lawsuit could have disastrous effects on the business. Therefore, a company can avoid future lawsuits, fines, & sanctions by being proactive.

  • Clarity. What is required of a staff member should always be made explicit by the employer. If an employer keeps a note of an employee’s failure to meet clearly defined standards, it helps shield the employer from wrongful termination allegations in the event that the person is fired.
  • Documentation. It is crucial. Employers have to demonstrate that the worker was aware of what was expected of them. The worker failed to live up to those standards & received warnings and discipline in accordance with business policies. The worker continued to fall short of expectations.
  • Employee handbook and training. Maintaining communication between workers and their employers is greatly aided by both written employee handbooks and training. Employers must make sure that their handbook and training adhere to all applicable local, state, and federal laws.
  • Liability Insurance. Employers should also think about getting liability insurance. Liability insurance may assist by covering the costs of defending against a wrongful termination case, which can happen to even the most cautious employer.
  • Legal advice. An employment law expert can assist employers in ensuring that they have all the necessary safeguards in place to prevent harassment, discrimination, & wrongful terminations, among other problems. These could put the business at risk of legal action. Legal professionals can better explain what is considered wrongful termination in California.

Unfair Termination in California: What Should Workers Do?

Workers who feel that they were fired unfairly must act right away. Time is crucial because in these kinds of cases, filing an administrative complaint is typically required before filing a lawsuit, and the two processes differ greatly. Additionally, compared to filing a lawsuit, the window for filing an administrative grievance is much shorter. You should take a few actions if you think you were unlawfully fired from your job in California.

  • Be cautious. Workers who have been wrongly fired should use caution in their behavior. The worker should comply when an employer requests them to return business property or exit the premises. Avoid taking any kind of retaliation, such as destroying corporate property, as this would only reflect negatively on you and make it more difficult for you to get a fair and equitable remedy.
  • Ask for an explanation. Workers ought to make sure their employer explains the reasons behind their dismissal. It is preferable to get this explanation in writing whenever feasible. Although your employer may not specify an unlawful reason, it is useful to establish the “official” reason.
  • Keep a record of everything. Everything should be documented. This includes the reasons you think your termination was unfair & any witnesses you may have had. Make an effort to remember people, dates, occurrences, locations, times, etc. Save all proof. Emails, texts, and the like, if at all feasible. Even a detail you consider trivial might hold great importance for your case.
  • Go over everything. Examine your contract of employment, if you’ve got one, and if you believe you have grounds for wrongful termination. Make sure you’ve got a printed copy of the worker’s handbook & any other documents pertaining to your job as well.
  • Engage a lawyer. If you think you were fired unfairly, your first course of action might be to hire an employment attorney. The lawyer can assist you in acting right away and preserving as much data as possible before it’s outdated and unrecoverable. He will assist you in deciding whether to file a state or federal claim first or concurrently. If you are awarded the right to sue, he will commence that procedure swiftly and competently.

Fired Without Warning

Employees are occasionally let go without warning. They are only summoned to a manager’s office and informed that their employment is being terminated. Employees may be terminated for any cause that is not illegal under California law since they are deemed to be at-will. Furthermore, no notice is needed. An employee can quit by just failing to show up the following day. The employer could follow suit. They might, in essence, fire a worker with the assumption that they won’t work with them again. There is no notification obligation under California law.

An employee should be aware that they have the right to their salary up until the time of termination if they are fired. When an employee is fired, the business should be ready to provide a check that includes the individual’s whole salary, which should include that day’s wages. If the employer refuses to do that, then a worker may be entitled to Labor Code Section 203 fines. This is a penalty for waiting time.

A Worker Holds a Contract with the Employer: Can They Be Dismissed?

The majority of employees in California lack contracts. A portion of them possess contracts for defined durations (such as one year or for a particular position). Regarding the cancellation of such an agreement, the matter revolves around examining the contract and deciding if the employer has the right to make an employee cease work.

Another concern is whether this would influence the matter of compensation. Does the employer compensate the employee for the remainder of the contract or for a defined duration? The agreement may include clauses indicating that an employer can void the contract if they dismiss a worker for just cause. In California, regardless of an employee’s contract status or at-will status, state law safeguards them against wrongful termination as well as illegal discrimination & harassment.

If a worker is an at-will employee or possesses a contract, it is essential for them to comprehend their rights. Upon concluding their employment, a manager or HR will request the worker to sign another document known as a separation contract. In this doc, they provide the worker with funds. At times, the money amounts to two weeks’ worth or even a month’s worth, and sometimes it’s even greater. An employee needs to recognize that if the company is taking this action, they are seeking the employee to waive their claim for any wrongful termination in return for the sum.

If an employee accepts the sum and signs this agreement, they might be freeing the company from any wrongful termination claims in California. Such claims might encompass salary disputes and unfair dismissal. When an employee is given such a contract at the end of their term, it is crucial for them to be aware of the rights they possess and the rights they might be giving up. When an employee executes a contract when starting their job position, they should realize that this doesn’t prevent them from seeking legal remedies beyond the terms of that agreement.

Remedy for Unfair Termination

In California, an individual who has been unlawfully discharged has a number of options for redress. Whether you submit a complaint via the court system, state or federal agencies, or both, will determine your remedies. An outline of the most common solutions:

  • Loss of wages. You are entitled to reimbursement for lost wages from the moment of your termination until the start of the trial. The amount of compensation for missed wages will be reduced if you obtain employment during that period.
  • Lost future income. You can pursue compensation for a loss of future wages if you are unable to obtain a job or one that compensates comparably.
  • Lost perks. Economic damages may be used to make up for lost benefits, such as bonuses, paid time off, retirement, and more.
  • Out-of-pocket costs. Costs related to items like medical care (such as therapy for abuse) or job search (such as recruiter fees) are examples of out-of-pocket expenditures.
  • Injunctive relief. The employer may be required by the court to take certain actions, such as restoring you as a worker in your previous role or mandating policy and procedure modifications to stop future wrongful terminations.
  • Charges and fees of attorneys. If you are successful, the court may require the employer to refund you for your legal fees and court expenses.
  • Pain and anguish. This kind of compensation is referred to as non-economic and may encompass anything from psychological distress to a decline in life quality as a result of the termination.

Selecting the Appropriate Lawyer for a Case of Wrongful Termination

Not every case of wrongful termination results in a solution. In reality, numerous instances end in an agreement. If someone is thinking about employing a wrongful termination attorney in California to safeguard their rights, they ought to take into account numerous factors. Is the attorney specialized in California labor & employment law? Does the lawyer’s work concentrate on wrongful termination, retaliation, & labor law matters?

The important matter to evaluate is whether or not the wrongful termination attorney possesses the required resources, along with the expertise. A person in California will seek a wrongful termination attorney who can guide them throughout the entire process.

In particular, a person will seek to find out if the lawyer is a trial attorney. Numerous individuals err by employing an attorney and gearing up for court, only to find that their lawyer lacks trial experience. It is critical to inquire about an attorney’s knowledge and background right from the start. Learning what is considered wrongful termination in California can help you better assess your legal rights.

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