What Counts and Doesn’t Count as Wrongful Termination in California?

What Counts and Doesn’t Count as Wrongful Termination in California

Losing your job can be devastating, but not every termination is illegal. Understanding what constitutes wrongful termination in California can help you determine whether you have grounds for legal action or if your employer acted within their rights.

California operates under at-will employment, meaning employers can generally terminate employees for any reason or no reason at all. However, there are important exceptions when terminations cross the line into illegal territory. Knowing these distinctions can protect your rights and help you make informed decisions about your career and legal options.

The employment law attorneys at Glaser Labor Law break down what qualifies as wrongful termination under California labor laws, what doesn’t, and the steps you should take if you believe you’ve been illegally fired.

Understanding California’s At-Will Employment Rule

California follows the at-will employment doctrine, which gives employers broad discretion to terminate employees. This means your employer can fire you for poor performance, personality conflicts, budget cuts, or even without providing any reason at all.

While this might seem unfair, the at-will rule works both ways — employees can also quit their jobs at any time without notice or reason. However, several important legal exceptions limit when and why employers can terminate workers.

What Counts as Wrongful Termination

Wrongful termination occurs when an employer fires an employee for an illegal reason, violating state or federal laws. Here are the main categories that constitute wrongful termination in California:

1. Discrimination

The California Fair Employment and Housing Act (FEHA) protects employees from termination based on protected characteristics. Firing someone because of their race, gender, age (40 and older), religion, disability, sexual orientation, national origin, or other protected status is illegal.

Discrimination can be obvious or subtle. While some employers might make overtly discriminatory comments, others may disguise discriminatory intent through pretextual reasons for termination. If you suspect discrimination played a role in your firing, document any relevant comments, emails, or patterns of treatment.

2. Retaliation

Employers cannot fire employees for engaging in legally protected activities. Retaliation occurs when termination follows an employee’s:

• Filing a workers’ compensation claim
• Reporting workplace safety violations or illegal activities (whistleblowing)
• Requesting or taking leave under the Family and Medical Leave Act (FMLA) or California Family Rights Act (CFRA)
• Complaining about harassment or discrimination
• Reporting wage and hour violations

The timing between your protected activity and termination can be crucial evidence. If you’re fired shortly after filing a complaint or taking protected leave, this timing may suggest retaliatory intent.

3. Breach of Contract

If you have an employment contract that specifies termination procedures or grounds for dismissal, your employer must follow those terms. This includes union contracts, executive agreements, or any written promises about job security.

Even verbal promises or employee handbooks can sometimes create contractual obligations. If your employer violated specific termination procedures outlined in your contract, you may have grounds for a wrongful termination claim.

4. Violation of Public Policy

California courts recognize wrongful termination when firing violates public policy. This includes termination for:

• Refusing to engage in illegal activities at your employer’s request
• Taking time off for jury duty or voting
• Exercising your right to workers’ compensation benefits
• Refusing to violate professional licensing requirements

5. Constructive Discharge

Sometimes employers don’t directly fire employees but create working conditions so intolerable that resignation becomes the only reasonable option. If your employer intentionally made your work environment unbearable through illegal conduct, constructive discharge may constitute wrongful termination.

What Doesn’t Count as Wrongful Termination

Understanding what doesn’t qualify as wrongful termination is equally important. These situations, while potentially unfair, are generally legal under California labor laws:

1. Poor Performance

Employers can terminate employees for legitimate performance issues, even if the employee disagrees with the assessment. As long as the employer isn’t using performance as a pretext for discrimination or retaliation, termination for poor work quality, missed deadlines, or failure to meet job expectations is legal.

However, if performance criticisms are inconsistent, undocumented, or appear to target protected characteristics, there may be grounds for a wrongful termination claim.

2. Misconduct

Workplace misconduct, including violations of company policies, inappropriate behavior, or ethical violations, can justify termination. This includes tardiness, insubordination, harassment of coworkers, or violating safety protocols.

The key is whether the misconduct is legitimate and documented. Employers should apply disciplinary policies consistently across all employees.

3. Business Restructuring and Layoffs

Economic necessity often requires employers to reduce their workforce. Layoffs due to budget constraints, company reorganization, or business closure are generally legal, even if they affect long-term employees or entire departments.

However, layoffs become problematic if they disproportionately impact protected groups or if the employer uses restructuring as a pretext to eliminate specific employees for illegal reasons.

4. At-Will Termination

Remember that California’s at-will employment rule allows termination for any non-illegal reason. Your employer can fire you because they don’t like your attitude, want to hire their friend, or simply decide to eliminate your position — as long as the real reason isn’t discriminatory or retaliatory.

How Glaser Labor Law Can Help

The employment attorneys at Glaser Labor Law focus their practice on workplace rights and obligations. Our employment law firm has successfully represented employees and business owners in analyzing and directing their workplace needs and employment law issues.

In addition to safeguarding employee rights, we can also assist with labor union issues. We have experience working as both representatives for union workers and as labor attorneys for employers. For undocumented workers, our employment practice centers around making sure all workers get equal protection under California and United States employment laws.

Don’t face this challenging situation alone. Glaser Labor Law is experienced in providing advice and counseling that minimizes the risk of litigation. While the firm frequently advises clients on preventive and cost-effective alternatives, civil litigation is an unavoidable reality, and prosecuting and defending employment litigation is a significant part of our practice. You can depend on us to help you achieve the damages and justice you deserve. Contact us today to schedule a consultation.

Glaser Labor Law

With deep roots in Southern California, Glaser Labor Law combines a focus on workplace rights with proven success in broader legal matters. Joel Glaser and his team bring decades of litigation experience to ensure every client receives strong, results-driven representation.