What Constitutes Wrongful Termination in California?

You reported your supervisor for making discriminatory remarks at work. A few weeks later, you're called into a meeting and told that you are being terminated because “your performance wasn't up to par.” Until then, you had never received a formal warning.

You can't help but wonder whether your reporting of workplace misconduct had a bearing on your dismissal. Was the firing simply unfair, or does it already constitute what is considered wrongful termination in the eyes of the law?

California gives employers ample discretion over employment decisions, but that authority has limits. Employees are protected against certain reasons for dismissal, even when their employment is considered at-will.

Let’s take a closer look at what the law says regarding illegal firings in California.

What Makes a Termination Wrongful Under California Law?

A termination is generally considered wrongful when an employer dismisses an employee for a reason prohibited by law, in violation of an enforceable employment agreement, or contrary to established public policy.

California follows the at-will employment doctrine under Labor Code § 2922. For employment without a specified term, this generally allows either the employer or employee to end the working relationship without establishing good cause.

An employer may therefore terminate an at-will employee for unsatisfactory performance, organizational changes, or other lawful business reasons. But at-will employment is not unlimited.

An employer cannot (ab)use its authority to dismiss someone for discriminatory reasons or in retaliation for legally protected conduct. Contractual obligations may also restrict an employer's right to terminate.

However, it must be established that an unfair dismissal is not necessarily an unlawful one. An employer might make an unreasonable decision or handle a termination poorly without violating the law.

The reason behind the dismissal, and the legal protections that apply, ultimately determine whether wrongful termination occurred.

ALSO READ: California FEHA: A Guide to Workplace Discrimination and Employee Protections

Common Examples of Wrongful Termination in California

California recognizes several circumstances in which firing an employee may violate the law. The following are among the most common.

Termination based on discrimination

California's Fair Employment and Housing Act (FEHA) prohibits covered employers from terminating employees because of legally protected characteristics.

These include:

• Race, color, or national origin
• Religion
• Sex, gender identity, or sexual orientation
• Pregnancy
• Disability
• Age, for employees 40 and older
• Marital status

For example, an employer may violate the law by firing an otherwise qualified employee because of their pregnancy or disability.

FEHA's employment discrimination provisions generally apply to employers with five or more employees. Other laws may provide protections in circumstances outside that threshold.

Termination in retaliation for exercising legal rights

Employees should not have to choose between keeping their jobs and exercising rights protected by law.

California prohibits employers from retaliating against employees for certain protected activities, including reporting unlawful workplace discrimination or participating in a related investigation.

Labor Code § 1102.5 also protects qualifying whistleblower activity. This can include reporting suspected legal violations to someone with authority to investigate or correct them, provided the employee has reasonable cause to believe a violation occurred.

Not every workplace complaint receives the same legal protection. The nature of the complaint and the circumstances of the dismissal matter.

Termination for taking protected leave

Eligible California employees have legal protections when taking qualifying family or medical leave. Under the California Family Rights Act (CFRA), covered employers generally must provide eligible employees with up to 12 workweeks of protected leave for specified family and medical reasons.

An employer cannot lawfully fire someone because they exercised their CFRA rights. For instance, dismissing an employee because they took qualifying leave to care for a family member with a serious health condition may violate California law.

Protected leave does not prevent every termination. An employer may still have a legitimate reason for dismissal unrelated to the employee's leave.

Termination that violates an employment contract

Some employment agreements restrict when or how an employer may terminate an employee. A contract might require good cause for dismissal or establish specific conditions that must be satisfied before termination.

These protections may arise from an express agreement or, in certain circumstances, an implied agreement established through the employer's conduct and representations.

An employee handbook alone does not necessarily create an enforceable contractual restriction. The language of the relevant documents and the circumstances of employment must be considered.

Termination that violates public policy

California courts also recognize wrongful termination claims when a dismissal violates a fundamental public policy supported by law. One example involves an employer firing someone for refusing to participate in illegal activity.

In Tameny v. Atlantic Richfield Co. (1980), the California Supreme Court recognized that an employee discharged for refusing to commit an unlawful act at an employer's direction could pursue a wrongful discharge claim.

This protection reflects an important principle: an employer's authority over its workforce does not extend to compelling employees to break the law.

What Should You Do If You Suspect Wrongful Termination?

If you have reason to believe your dismissal wasn’t merely undeserved but also violated California law, there are practical steps you can take to assert your rights and potentially recover economic and/or non-economic damages.

1. Preserve relevant employment records

Keep copies of documents you lawfully possess, including, but not limited to, your termination notice, employment agreement, performance evaluations, and relevant workplace communications. Avoid accessing restricted company systems or taking confidential records without authorization.

2. Write down what happened

Prepare a timeline of significant events leading up to your dismissal. Record important conversations as accurately as possible, from when they took place and who was involved to what was said. Details that seem inconsequential now may become relevant when evaluating the employer's stated reason for termination.

3. Review your legal options promptly

Wrongful termination claims can involve different legal procedures depending on the underlying violation. Some require an administrative complaint before a lawsuit can proceed. Filing deadlines also vary.

Consulting a wrongful termination lawyer in Los Angeles can help you understand which protections may apply and whether further action is appropriate.

What Can You Recover in a Wrongful Termination Case?

California law provides remedies for employees who establish qualifying illegal termination claims. Depending on the circumstances and legal basis of the case, available relief may include:

• Lost wages and benefits: Compensation for earnings and employment benefits lost because of the termination.
• Emotional distress damages: Compensation for qualifying emotional harm resulting from unlawful conduct.
• Reinstatement: Returning to the former position when appropriate and legally available.
• Punitive damages: Additional damages in certain cases involving conduct that meets the applicable legal standard.

Other remedies, including attorney's fees, may be available under particular laws.

Recovery is not automatic, and different claims permit different forms of relief. Contract-based claims, for example, do not necessarily provide the same remedies as statutory discrimination claims.

A Los Angeles wrongful termination attorney can evaluate which remedies may be available based on the evidence and applicable law.

Frequently Asked Questions About Wrongful Termination in California

Can you sue for wrongful termination if you were an at-will employee?

Yes. At-will employees can pursue a claim for wrongful termination when their dismissal violates applicable law or public policy. At-will employment gives employers broad discretion over termination decisions, but it does not authorize discrimination, unlawful retaliation, or other prohibited conduct.

Can you be wrongfully terminated during your probationary period?

Yes. Employees generally retain applicable statutory workplace protections during probationary periods. An employer may have greater contractual flexibility to dismiss a probationary employee, but that flexibility does not permit termination for unlawful reasons.

Can you file a wrongful termination claim if your employer never gave a reason?

Yes. While California employers generally are not required to explain why they terminate at-will employees, and that the absence of an explanation does not, by itself, establish wrongful termination, a claim may be pursued if other evidence indicates that the dismissal was motivated by discrimination, retaliation, or another unlawful reason.

How long do you have to file a wrongful termination claim in California?

The deadline depends on the type of claim. For wrongful termination claims involving discrimination or retaliation under FEHA, employees generally have three years from the alleged unlawful act to initiate the administrative complaint process with the California Civil Rights Department, subject to applicable exceptions.

Employees pursuing their own FEHA lawsuit must also obtain a right-to-sue notice. Generally, they have one year from the notice's issuance to file suit.

Other unlawful termination claims follow different deadlines. Seeking legal advice promptly can help you avoid missing an applicable filing period.

About JLG Lawyers

Being told your employment has ended does not always mean you have been told the whole story. If the circumstances suggest your employer acted unlawfully, you deserve the opportunity to have those concerns properly examined.

JLG Lawyers is a Los Angeles wrongful termination law firm that helps workers understand whether their workplace rights have been infringed upon and pursue available legal remedies when the law allows.

If you believe your dismissal was unlawful, our legal team can review your circumstances and help you determine what options may be available.

This article provides general educational information about California employment law. It is not legal advice and should not be used to determine how the law applies to your specific circumstances.