What Constitutes Wrongful Termination in California?

Wrongful termination in California occurs when an employer fires an employee in violation of state laws, contracts, or public policy. Employees may have legal options if dismissed due to discrimination, retaliation, contract breaches, or other unlawful reasons.

By Brad Nakase, Attorney

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How Does California Define Wrongful Termination?

A wrongful termination occurs in California when an employer fires an employee without proper justification. It happens when a company fires an employee in violation of local, state, or federal law. The unlawful treatment of a person because of their age, handicap, or pregnancy is one common example. In certain cases, employees may have the right to sue their former employers for wrongful termination.

When an employer fires an employee for doing what they’re legally required to do or for exercising a legally protected right, and that right or duty is associated with a major public policy issue in the state, it’s considered wrongful termination in violation of public policy according to California labor law.

There may be legal recourse available to you in the event that you feel your termination was unfair in the state of California.

You need to show that your employer fired you because they broke California labor laws or public policy for your wrongful dismissal claim to be successful.

Put another way, an employee needs to prove that their boss violated the law in some manner when they fired them in order to have a wrongful termination lawsuit.

Since the majority of workers accept their jobs “at will,” this is not necessarily a simple task. This gives you complete leeway to leave your job whenever you like and for whatever reason you see fit.

So, businesses can fire workers if they want to, provided they don’t break any of the laws protecting workers’ rights. We break down a few of these employment statutes below.

Is the state of California at-will?

Indeed, the state of California adheres to the “at-will” principle of employment. This means that in the absence of a written agreement, either party to the employment relationship is free to terminate it at any moment and for any cause.

When is it against the law in California to fire someone?

Unlawful termination occurs in a far more limited context than employees often imagine. However, such incidents do occur. Some of the most prevalent grounds for a California wrongful termination claim are as follows.

1. Contract violation

A contract outlining the terms and conditions of an employee’s employment might serve as a safeguard against unfair dismissal. Typical provisions in such contracts include a definition of “cause” and a statement that the employee’s dismissal can only occur for “good cause.”

Here, “good cause” as defined in the agreement must be the employer’s stated reason for firing the worker. The employee has the right to sue for breach of contract if the stated reason for termination does not meet the criteria.

2. Violating the covenant of good faith and fair dealing

Along with any legally binding agreement comes the “implied covenant of good faith and fair dealing.” Thus, when two parties enter into an agreement, they are essentially making an unspoken pact to not do anything that would cause the other party to lose out on the advantages that the agreement offers.

One aspect of this is being truthful and not trying to trick the other person. Furthermore, neither party shall do anything that would provide the other party an undue advantage in the performance of their obligations under the contract.

What this means in a work setting is that employers have a fundamental responsibility to their employees to provide them with the resources they need to do their jobs.

The use of deceit, avoidance, inaction, silence, or other types of obstruction. Each of these actions could constitute a violation of the agreement on honest and fair dealings.

Under these conditions, you may be able to file a wrongful termination claim in the state of California.

3. Sexual harassment retaliation

As a type of discrimination in the workplace, sexual harassment is against the law.

Under California law, your employer is required to actively prevent sexual harassment in the workplace. And if they don’t, you can legally hold them accountable for their failure to fulfill their duty.

Your employer cannot fire you just because you have reported or complained about sexual harassment; doing so is also against the law. This applies whether the harasser is aiming their words or actions at you.

It is retaliation to act negatively toward an individual who discloses or takes part in an investigation into sexual harassment. Plus, it’s against the law in California.

A claim for wrongful termination may be possible if your dismissal is the result of your involvement in a sexual harassment investigation.

4. Medical or family leave retaliation

It is illegal for an employer to fire an employee for requesting or taking family medical leave.

Employers in California cannot punish workers who use their sick days to deal with preexisting medical conditions, according to state law. Or for ongoing care for the worker or a family member of the worker.

Specifically, imagine you are threatened with dismissal less than 30 days after requesting paid sick leave. It is presumed under California law that this is an instance of wrongful termination.

The onus then shifts to your employer to establish that your request or use of sick leave was not the sole justification for your termination.

Furthermore, you have the right to family or medical leave, and your employer cannot fire you because you used it. The FMLA  and the California Family Rights Act (CFRA) both address this. You have the right to twelve weeks of leave for a serious health condition, either for yourself or a family member, if you work for an employer that is covered by one of these laws.

You will once again be subject to the presumption of wrongful discharge in California if you are fired while on Family and Medical Leave Act (FMLA) leave or within 90 days of returning from it. Also, it’s on your employer to show that that wasn’t the basis for your dismissal.

5. Retaliation against whistleblowers 

Furthermore, no employer can fire an employee for “whistleblowing” in any form. What this basically means is that you can report them for breaking any number of laws, whether they be at the federal, state, or local level.

It would be an example of wrongful termination if, after reporting a health or safety hazard at work, your boss fired you.

6. Retaliation for wage and hour law complaints

In a similar vein, the California Labor Code forbids employers from terminating employees for merely bringing attention to violations of wage and hour laws.

This encompasses situations where an employee files a complaint or report regarding unpaid wages, overtime compensation, or violations of meal and rest break policies.

No employer can punish an employee for pursuing a wage claim through the Department of Industrial Relations. The California Labor Code also protects workers when they exercise any rights, whether they are for themselves or other employees.

7. Discrimination based on pregnancy

It is also illegal to fire an employee just because they are pregnant.

It is illegal for an employer in California to terminate an employee’s employment because of their choice to become pregnant, the presence or absence of complications, or any request related to medical matters arising from a pregnancy, according to the Fair Employment and Housing Act and the Pregnancy Discrimination Act.

Another example of unlawful pregnancy discrimination would be denying or terminating an employee’s request for reasonable accommodations (such as leave) because of their pregnancy.

8. Protected class discrimination

Businesses in California with five or more employees are required to comply with civil rights legislation that forbids hiring practices that discriminate against individuals on the basis of protected traits.

People who fall into this category are collectively known as a “protected class.” It is possible to sue for wrongful termination if your dismissal is due to your membership in a protected class.

California recognizes the following protected classes:

  • Race
  • National origin
  • Color
  • Sex
  • Ancestry
  • Age (if over 40)
  • Religion
  • Genetic information
  • Disability
  • Marital status
  • Gender identity
  • Sexual orientation
  • Medical condition
  • AIDS/HIV positive status
  • Military or veteran status
  • Political activities or affiliations
  • Victims of assault or stalking or domestic violence
  • Citizenship status

More than one protected class may be present in some municipalities. In San Francisco, for example, it is against the law for employers to treat their employees differently because of their weight or height.

9. Public policy violation

Employers in California face wrongful termination lawsuits when they fire workers who are just doing their jobs or fulfilling public obligations. This occurs when an employee is threatened with dismissal due to:

  • Performing a legal duty
  • Refusing to break the law
  • Reporting the violation of a law of public importance
  • Exercising a legal privilege or right

For instance, as serving on a jury is a legal requirement, it is unlawful to terminate an employee for requesting time off to do so. Refusing to commit a crime (like fraud) on behalf of your employer is also not grounds for termination.

The circumstances surrounding this violation should have the potential to affect the general public, rather than solely focusing on the worker’s and employer’s private interests.

Discrimination and retaliation in other circumstances

There are a variety of other, more nuanced scenarios in which, depending on the context, your dismissal may constitute discrimination or unlawful retaliation in violation of California labor laws.

Obtaining benefits due to victims of specific crimes, accommodating lactation, or volunteering as a firefighter are all examples of such situations.

There is a compilation of anti-discrimination and anti-retaliation statutes in California kept by the Department of Industrial Relations.

Options for Responding to an Unlawful Termination in California

Victims of wrongful termination who fall within one of these categories may be able to sue their former employer for damages. If a court determines that your termination violates California law, you may be able to seek monetary compensation through a damages lawsuit.

In the event of a successful lawsuit, the employee may be awarded compensatory damages. These damages are intended to reimburse the employee for any lost wages, benefits, or emotional distress caused by their termination, and they can also receive payment for their legal fees. When a company’s violation has a particularly severe impact, courts may also award punitive damages.

If you think you were fired illegally in California, you should talk to an employment lawyer who can look over your case. After reviewing your case, a wrongful termination attorney can advise you on your legal options for compensation and represent you in court.

Have a quick question? We answered nearly 2000 FAQs.

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