When Is Firing an Employee Unlawful in California?

Losing a job is often one of the most stressful life events a person can experience, especially when it happens unexpectedly or feels unfair. Being let go can leave employees questioning their performance, their future, and whether the termination was even legal. While California gives employers significant flexibility, there are clear boundaries protecting workers from unlawful dismissal. At Minnis & Smallets LLP, our attorneys have the skills to navigate our clients through complex employment situations, helping employees determine if their rights were violated.

Here’s what employees need to know about wrongful termination:

• California is an “at-will” employment state, meaning termination can occur with or without cause.
• Exceptions exist for discrimination, retaliation and protected activities.
• Employment contracts can limit an employer’s ability to fire at will.
• Terminated employees may be entitled to compensation if laws were broken.

How does at-will employment work in California?

Under California Labor Code Section 2922, employment is presumed to be “at-will.” This generally means that employers can lawfully terminate an employee at any time, for almost any reason or even for no reason at all. Conversely, employees are also free to resign at any time without penalty.

However, this broad rule does not give employers carte blanche to fire employees for unlawful reasons. While a boss might legally fire someone due to personality clashes or budget cuts, they cannot cross the line into discriminatory or retaliatory behavior. Understanding this distinction is often the first step in identifying a wrongful termination claim.

What are the common exceptions to at-will termination?

Even in an at-will state, several legal protections prevent employers from firing workers under specific circumstances. The most significant exceptions involve violations of state and federal statutes, public policy, and breach of contract.

Unlawful reasons for termination typically fall into these categories:

• Discrimination: Employers are prohibited from terminating an employee due to protected characteristics. This includes age (40+), race, gender, sexual orientation, nationality or disability.
• Retaliation: It is unlawful to fire an employee for engaging in protected activities, such as reporting sexual harassment, filing a safety complaint or blowing the whistle on unlawful activities.
• Protected Leave: Employees cannot be fired for exercising their right to take leave under the Family and Medical Leave Act (FMLA), California Family Rights Act (CFRA) or pregnancy disability leave laws.
• Breach of Contract: If an implied or written employment contract exists, the employer may be required to have “good cause” before terminating the employee.

What are the signs of wrongful termination or retaliation?

Identifying unlawful conduct can be difficult, as employers rarely admit to firing someone for an unlawful reason. Instead, they may cite “poor performance” or “restructuring” to cover their tracks. However, certain patterns often emerge in wrongful termination cases.

Watch for these potential red flags:

• Timing: Was the employee fired shortly after reporting harassment, requesting medical leave or complaining about unpaid wages?
• Inconsistency: Was the employee fired for a rule violation that other employees regularly ignore without consequence?
• Lack of Documentation: Is there a sudden drop in performance reviews following a protected complaint, despite a history of positive feedback?
• Discriminatory comments: Were biased remarks made by supervisors or management prior to the termination?

If the circumstances surrounding a dismissal feel suspicious or retaliatory, it is crucial to document everything, including emails, performance reviews and witness interactions, that might support a claim.

What legal options exist after being fired?

If an employee believes they were fired unlawfully, they have options to seek justice and compensation. Recoverable damages in wrongful termination lawsuits can include lost wages, emotional distress and, sometimes, punitive damages designed to punish the employer for egregious conduct.

The first step is usually to consult with a reputable employment law firm. Attorneys can review the facts, assess whether the at-will presumption has been overcome, and guide employees through the process of filing complaints with agencies like the California Civil Rights Department (formerly DFEH) or pursuing litigation in court.

Explore Opportunities for Recompense

The aftermath of a job loss can feel uncertain. California law provides robust protections for hard-working salaried and hourly employees, accomplished executives and distinguished professionals. If an employee suspects their dismissal was unlawful, Minnis & Smallets LLP is here to help. Contact us today to discuss significant employment issues.