A wrongful termination occurs when an employee is fired for an unlawful reason. These reasons usually include discrimination or retaliation, breach of contract, or violations of public policy. Federal and State laws protect employees from wrongful terminations and provide legal recourse for fighting back.
Employment Termination in an At-Will State
As an at-will state, California allows employers or employees to terminate employment relationships at any time and without penalty, as long as the reasons for termination are legal. For example, an employee can move to a new position. An employer may need to downsize or find the employee’s performance unsatisfactory.
When Terminations Are Unlawful
The State’s at-will status does not permit unlawful terminations based on discriminatory, retaliatory, or illegal practices.
Discriminatory Terminations
The Equal Employment Opportunity Commission (EEOC) presents the Federal laws, and the California Civil Rights Department (CRD) presents State laws, against employer discrimination. Employees cannot be terminated because of their status in a “protected class.”
Terminations based on an employee’s sex, sexual orientation, race, religion, medical condition, national origin, pregnancy, and other classifications are unlawful.
Termination as Retaliation
Employers cannot fire employees for engaging in protected activities. Examples of protected activities include:
- Taking family leave
- Applying for workers’ compensation
- Filing a complaint with Human Resources (HR)
- “Whistleblowing” about corrupt or unlawful company practices
Retaliatory terminations can also stem from employer discrimination. An employer could fire an employee for missing work to carry out religious observances.
Sexual Harassment Wrongful Terminations
Sexual harassment is a form of discrimination. It can also permeate company culture and create a hostile work environment. Employers may fire employees who reject advances, report inappropriate comments, act to protect colleagues, or simply refuse to go along with the damaging company culture.
Public Policy Violations
An employer cannot fire an employee who refuses to follow orders to break the law, for exercising a legal right, or for fulfilling a legal duty. If a company is undergoing an investigation, an employer cannot fire an employee who refuses to provide false information or lie under oath.
Under the California Equal Pay Act, employees have the right to disclose, discuss, and request information about wages to ensure fairness, and cannot be fired for those disclosures and inquiries. Employers cannot terminate employees for voting or serving on a jury.
Breach of Contract or Company Policy
Though an at-will state, California still requires employers to honor the terms of employee contracts, written, oral, or implied, and to uphold company policies. If a contract establishes conditions for termination and company policies present required procedures for implementing the dismissal, employers must follow those rules.
WARN Act Violations
Under California’s Worker Retraining and Notification (WARN) , employers must give employees 60 days’ notice before implementing a mass layoff of at least 50 employees, or closing or relocating a business. Employers with 75 or more employees must comply.
What to Do After a Wrongful Termination
Employees who think they have been wrongfully terminated should consult with a Los Angeles wrongful termination lawyer. There may be grounds to pursue a complaint or lawsuit and seek damages, be reinstated to their position, or secure other compensation.