California Wrongful Termination Claims

California is an at-will employment state. In general, this means an employee can quit or resign for any reason. It also means an employer can fire or terminate an employee for any lawful reason. An employer who fires someone for an unlawful reason may be liable to the employee for wrongful termination.

With some of the strongest employee protections in the nation, California workers have several legal options for wrongful termination and different types of damages available, depending on the type of claim pursued. The employer’s consequences for violating the law can be severe.

This article explores the various wrongful termination laws in place that protect California workers. If you think you may have suffered an unlawful termination, consider reaching out to a California wrongful termination lawyer for legal advice.

What Is Wrongful Termination?

No matter what it’s called—getting fired, terminated, downsized, or laid off—losing your job can be upsetting. Although it can be an emotional time, distinguishing between what is illegal and what feels unfair is important.

Employers must follow federal and state wrongful termination laws. When an employer fires an employee for a reason that violates state or federal labor laws, it is known as wrongful termination.

Regardless of California‘s status as an at-will employment state​, employers cannot fire employees for unlawful reasons. Those who do may face a wrongful termination lawsuit.

Wrongful termination occurs when an employer terminates an employee for an illegal reason. The burden of proof for a wrongful termination claim is on the employee. In other words, the employee must show that the termination was based on an illegal reason.

Wrongful termination covers things like:

• Discrimination
• Retaliation
• Violation of public policy
• Breach of contract

Other employment actions may seem unfair, but can be a legal form of termination. These include as:

• Getting fired without warning
• Getting fired for poor performance
• Being let go due to a personality conflict
• Being replaced by someone willing to work for less
• Other unfair treatment that isn’t illegal

Unfair treatment may sting, but it doesn’t meet the requirements for a wrongful termination case. Sometimes there is an illegal reason behind something that may, on the surface, simply look unfair. In other words, an unfair reason for the termination may be a pretext (a false or misleading reason given to hide the real motive) for an illegal reason.

For example, being fired for poor performance may be a pretext for an illegal reason, such as discrimination. If you’re fired and replaced by someone younger who is willing to work for less money, that may be a pretext for age discrimination, which is also illegal. For this reason, documenting everything after you’re fired is essential. Having access to the details of your case will make the legal process much easier to navigate.

Unlawful Reasons for Termination in California

At-will employment means an employer can fire an employee for any lawful reason. An unlawful reason for termination is an exception to the at-will employment rule. An employee who can show an unlawful reason for their termination may have grounds for a wrongful termination claim against the employer. Let’s take a look at some of the more common types you may encounter.

Discrimination

Employers may not discriminate​ against their employees. California‘s primary anti-discrimination law is the Fair Employment and Housing Act​ (FEHA).

Under FEHA, an employee pursuing a wrongful termination claim must show that the termination was motivated by a protected characteristic. The protected characteristics under FEHA are:

• Race, color, national origin, ancestry
• Religion or religious creed
• Age (40 and older)
• Sex, gender, gender identity, gender expression
• Sexual orientation
• Disability (physical, mental)
• Medical condition (for example, cancer, genetic characteristics)
• Marital status
• Military or veteran status
• Pregnancy, childbirth, breastfeeding
• Status as a victim of domestic violence, assault, or stalking

California‘s law is similar to the federal anti-discrimination law, Title VII of the Civil Rights Act of 1964: Equal Employment Opportunity, but FEHA‘s coverage is broader. FEHA applies to employers with five or more employees, recognizes more protected characteristics, and includes perceived characteristics.

Retaliation

Several state and federal laws that protect employees also prohibit employers from employers from retaliating​ against them. Some of the key state statutes prohibiting retaliation include:

• California Labor Code § 1102.5​ (the primary whistleblower protection statute)
• Fair Employment and Housing Act​ (FEHA)
• California Family Rights Act​ (CFRA)
• California Labor Code § 98.6​ (filing a wage claim)
• California Labor Code § 6310​ (reporting unsafe working conditions)

Some of the key federal statutes prohibiting retaliation include:

• The Fair Labor Standards Act​ (FLSA)
• The Family and Medical Leave Act​ (FMLA)
• The Americans with Disabilities Act​ (ADA)
• Title VII of the Civil Rights Act​

An employee pursuing a retaliation claim must show the following elements:

• The employee was engaged in a protected activity
• The employer took an adverse action (in this context, terminated the employee)
• There is a causal connection between the two

Protected activities include:

• Filing a discrimination complaint with either with the California Civil Rights Department (CRD) or the federal Equal Employment Opportunity Commission (EEOC)
• Filing a wage claim or labor complaint
• Reporting workplace safety violations
• Whistleblowing​ (reporting illegal activity)
• Filing a workers’ compensation claim
• Taking protected leave
• Requesting reasonable accommodations
• Reporting sexual harassment
• Refusing to participate in illegal activity
• Cooperating with workplace investigations

The employee can show proof of the three elements of a retaliation claim, but the employer may counter by providing a non-retaliatory reason for the termination. If this occurs, the employee must show that the employer’s stated reason for the termination was a pretext for an illegal reason.

Public Policy Violations

The California Supreme Court first recognized the public policy exception to at-will employment in 1980 in Tameny v. Atlantic Richfield Co. A “Tameny claim”​ is a common-law tort claim that allows an employee to sue for wrongful termination when the firing violates public policy. The public policy must be clearly established in the California Constitution, statutes, or regulations.

Examples of potential Tameny claims include getting fired for:

• Serving on a jury
• Taking time off to vote
• Refusing to violate the law
• Exercising a legal right
• Performing a legal obligation

A Tameny claim may be paired with other statutory wrongful termination claims if the statute does not provide the exclusive remedy. For example, California law provides the exclusive remedy for a workers’ compensation retaliation claim. Unless the employee has an additional statutory wrongful termination claim, an employee generally cannot file both a workers’ compensation retaliation claim and a Tameny claim.

Breach of Contract

Your employer can’t violate an agreement​ they made about your job security or a progressive discipline plan. If your employer promised job security or specific termination protections, they may be required to uphold their agreement.

Agreements/contracts come in many forms. These can include:

Written contracts:

• Employment agreement specifying term or conditions for termination
• “Just cause” requirements, often found in collective bargaining agreements

Implied contracts:

• Employee handbook language suggesting job security
• Oral promises about employment duration
• Employer’s pattern of conduct (for example, always following a progressive discipline plan)

Although an implied contract is more difficult to prove than a written contract, California recognizes such claims more readily than many other states. If a contract was in place (written or implied), the employer must act in good faith. The implied covenant of good faith and fair dealing means, for example, that your employer can’t fire you to avoid paying earned benefits or to prevent the vesting of your pension or stock options.

Other Types of Terminations

Sometimes, a wrongful discharge isn’t obvious. An employer action may not look like a termination but legally functions as one. If you feel forced to quit your job or you get laid off by your employer, the circumstances may warrant investigation. If the employer terminated your employment for an unlawful reason, you may have a wrongful termination claim.

Let’s take a look at some of the different types of illegal terminations.

Constructive Discharge

A constructive discharge​ occurs when an employer makes working conditions so intolerable that an employee has no choice but to quit. Examples of constructive discharge include public humiliation, a severe and sudden pay cut, dangerous working conditions, and severe harassment.

Under California law, an employee’s resignation may be treated as a termination if an employee can prove both that:

• A reasonable person would feel forced to quit under the circumstances
• The employer created or allowed the circumstances

If you’re not sure if this applies to you, consider speaking with an employment lawyer.

Targeted Layoffs

An employer cannot target protected employees in a layoff or reduction-in-force (RIF). FEHA prohibits discrimination and retaliation in termination decisions. An employer cannot hide behind a layoff to avoid wrongful termination claims.

If the employees affected by a layoff share a protected characteristic (for example, workers over 40 years old) or all engaged in a protected activity, such as taking protected leave or reporting a workplace safety violation, the layoff may be targeted. In a mass layoff situation, employers must also provide the employees with adequate notice under both state​ and federal​ Worker Adjustment and Retraining Notification (WARN) Acts.

Taking Legal Action for a Wrongful Termination Claim in California

A wrongfully terminated employee may have several options available for recovery. The first step is to gather evidence to support your wrongful termination claim​. The next step is to understand the legal options available and take action.

Document Everything

If you think you may be taking action against your employer for wrongful termination, start taking detailed notes right away. Keep track of your day-to-day activities, noting who you interact with and when. Note the names and contact information of any witnesses to your interactions with the employer. Create a timeline of events. Save all of your work-related information, such as:

• Employment contract, offer letter, employee handbook
• Performance reviews and any performance improvement plans
• Emails, texts, and memos related to termination
• Medical records (if relevant)
• Any evidence of similarly situated employees being treated differently

Keep track of anything that you think might be relevant. It’s better to take info you end up not needing than to miss something that you do.

Your Legal Path to Recovery

Your legal path to recovery for wrongful termination depends on the type of claim you have. Some claims require “administrative exhaustion.” This means you must file with the appropriate government agency first. Other claims can go directly to court. Some claims allow you to choose.

It’s important to follow the correct procedure for your claim. For example, if your termination involved discrimination, harassment, or retaliation based on a protected characteristic, you generally must file an administrative claim with the California Civil Rights Department (CRD) (formerly known as the Department of Fair Employment and Housing, or DFEH) before suing.

If federal law applies, you can also file with the Equal Employment Opportunity Commission​ (EEOC). These agencies often cross-file claims with one another. Once the administrative process is complete (or once you receive a “right-to-sue” notice), you can file a lawsuit in state or federal court, depending on your legal claims. If the CRD does not complete its investigation within certain timeframes, you can request a right-to-sue letter and proceed directly to court.

Whether a case proceeds in California state court or federal court depends on the laws involved. California protections against wrongful termination are broader than those in other states, offering employees better recovery options and longer filing deadlines.

Other wrongful termination claims do not require administrative exhaustion. Some claims are filed in court from the start. These include claims based on public policy violations, breach of contract, certain whistleblower protections, and WARN Act violations.

Some claims may be brought either before the California Labor Commissioner or directly in court. The choice belongs to the employee. This mostly applies to California Labor Code retaliation claims, such as wage- and whistleblower-retaliation claims.

Deadlines and procedural requirements vary, so it’s important to identify all potential wrongful termination claims available to you so you can file your claim in the right place and on time. Most have statutes of limitations, after which you can no longer bring a claim. Working with an employment attorney is one way to navigate this complex path.

Potential Damages and Remedies for a Wrongful Termination Claim

An employer that wrongfully terminates an employee may face severe consequences. Depending on the circumstances of the case and the type of legal action​ taken, an employee who brings a successful wrongful termination claim may be entitled to:

Economic damages:

• Back pay (lost wages, calculated from the wrongful termination to judgment)
• Front pay (future lost earnings)
• Lost benefits (for example, health insurance, 401k, stock options)
• Job-search expenses

Non-economic damages:

• Emotional distress
• Pain and suffering
• Loss of reputation

Punitive damages​:

• Available if the employer’s actions were malicious, fraudulent, oppressive, or extremely reckless
• Intended to punish and deter especially bad behavior

Other remedies:

• Reinstatement (the employer must give the employee the job back or restore seniority)
• Injunctive relief (the employer must correct the employee’s personnel file or stop discriminatory practices)
• Attorney’s fees and costs

Under FEHA, there is no cap on compensatory damages, unlike some federal laws. Punitive damages under FEHA may be subject to statutory caps based on the employer’s size. An employee may recover both economic and non-economic damages.

When To Contact a California Employment Attorney

A wrongful termination has many characteristics. Meeting with a California wrongful termination attorney​ is a good idea if your employer terminates you under suspicious conditions. This can include:

• Being fired shortly after complaining about discrimination or harassment
• Getting terminated after reporting the employer’s illegal activity
• Being let go after filing a workers’ compensation claim
• Being fired while on or shortly after returning from protected leave
• Your discharge followed a pattern of discriminatory comments or conduct
• The employer gave inconsistent or changing reasons for your termination
• Other employees in your protected class were also terminated

Wrongful termination may also apply if specific legal requirements are violated, such as:

• You have a written employment contract
• The employer is pressuring you to quickly sign a separation agreement
• The termination was part of a mass layoff without proper notice

If you are a California employee and you think your employer fired you for an unlawful reason, a California employment law attorney​ can help you decide what to do next. Many employment attorneys work on a contingency fee basis. This means you don’t pay any money up front for the legal services. Your attorney only gets paid from what you win from your former employer.