Wrongful Termination in California: What to Know and How to Respond

Street scene Mission District, San Francisco CA

Losing your job is tough. It’s even harder when you suspect the firing wasn’t just unfair, but illegal.

Employers in California and throughout the United States have a lot of leeway to fire workers with and without cause. Nonetheless, numerous federal and California state laws protect employees from being wrongfully terminated.

If your employer breaks these laws, they can face serious consequences. Your employer could owe you compensation for the harm caused. In certain cases, you might even be entitled to get your job back.

The key question, though, is whether your firing meets the legal definition of wrongful termination.

We’re here to help you understand your rights and options. Especially if you were fired recently, you’re probably feeling overwhelmed. We’ll help walk you through what you need to know to make sense of your situation.

First, we’ll explain what wrongful termination means in California and under federal law. We’ll also go over the concept of at-will employment and what that term means for you.

After that, we’ll walk you through different examples of wrongful termination and outline the steps to take if you think you’ve been wrongfully fired (or might be fired) in California.

Even if you resigned from your position, if your employer knowingly created a hostile work environment, you may still have a case for wrongful termination. That situation is known as constructive discharge, and we’ll cover it too.

“At Will” Employment and What it Means for California Employees

California – like everywhere in the U.S. except Montana – follows an “at-will” employment rule. The California Labor Code states that the employment relationship can be terminated “at the will of either party.”1 This means that either you or your employer can end the employment relationship at any time and for almost any reason.

Just like you can usually quit anytime, your employer can usually fire you anytime, provided the reason isn’t illegal. Understanding this “at-will” concept is crucial context for wrongful termination claims.

So, generally, your employer doesn’t need “good cause” to let you go. But – and this is critical – there are major exceptions to the “at-will” rule. Knowing these exceptions is key to understanding wrongful termination.

These exceptions generally fall into two main types:

1) Breach of Contract
2) Violation of Law / Public Policy

Before we dive into the details, there’s one more important point: wrongful termination applies only to employees, not independent contractors.

Maybe you’re not sure whether you’re classified as an employee or an independent contractor. You might even suspect your employer has misclassified you.

We can help you clarify your situation. To start, check out our Guide to California’s Labor Laws for Independent Contractors, or contact us using the button above (on desktop) or below (on mobile).

With that in mind, let’s take a closer look at the exceptions to at-will employment.

Contract Exceptions to At-Will Employment

The “at-will” rule isn’t absolute. It doesn’t apply if you have an employment contract, specifically one for a definite time period.

The California Labor Code supports this. “At-will” applies only when employment has no specified end date.2

Does your contract specify a term longer than one month? Then your employer generally needs “just cause,” meaning a valid reason to fire you before that term ends.

That kind of fixed-term contract is uncommon for most jobs. However, California law recognizes other agreements too, like implied contracts. What matters is the real understanding between you and your employer. This understanding might stem from their actions, communications, or policies. If these suggest you’d only be fired for good reason, a court might find an implied contract exists, and this overrides the “at-will” assumption.

For example, factors suggesting an implied contract might include:

Specific verbal or written assurances from management about job security or only firing for cause.
Company handbooks or policies outlining specific disciplinary steps required before termination .

Other types of agreements can also limit “at-will” status. Common examples include:

Public-Sector Employees: Often protected by civil service rules or union MOUs (Memorandums of Understanding).
Unionized Employees: Usually covered by Collective Bargaining Agreements. These typically require “just cause” for firing or outline specific grievance procedures.
Some Executive Employees: May have specific contracts requiring “good cause” for termination, even without a fixed duration.

Employment contract law is complex. Think your firing violated a contract (written or implied)? It’s vital to speak with an employment lawyer and, if applicable, your union representative.

We’ve covered contract exceptions. Now let’s look at the second major exception: terminations violating laws or public policy. This category is crucial, as most wrongful termination claims fall under it.

Illegal Reasons: The Biggest Exception to “At-Will” Employment

“At-will” employment doesn’t mean your employer can fire you for any reason. Firing someone for an illegal reason is prohibited, even without a contract.

Federal, state, and local laws limit an employer’s power to terminate employees arbitrarily. These laws create major exceptions to the “at-will” doctrine.

Protections generally fall into five key categories:

Protection Against Discrimination: Employers can’t fire you based on protected characteristics.
Taking Protected Leave: You can’t be fired just for taking legally guaranteed leave.
Protection Against Retaliation: Employers can’t fire you for engaging in legally protected activities.
Whistleblower Protection: You can’t be fired for being a lawful whistleblower.
Public Policy Exception: Employers can’t fire you for reasons that violate fundamental public policy.

If a California employer fires you for one of these illegal reasons, it may be wrongful termination.

Let’s look closer at the specific California laws protecting workers from wrongful termination.

Wrongful Termination Based On Discrimination

Firing someone based on their membership in a protected class is illegal. This applies across the U.S. and in California. Employers cannot use discrimination in termination decisions.

Our Complete Guide to California Laws on Discrimination covers protected classes in full detail.

Federal law protects against discrimination based on these characteristics:

Race/Skin color
Sex/Gender
National origin
Religion
Age (40 and older)
Disability
Pregnancy
Genetic information

California law offers even broader protection. The state’s Fair Employment and Housing Act (FEHA) covers individuals who may not be shielded by federal anti-discrimination laws.3 FEHA forbids discrimination based on the federal list plus these:

Ancestry
Military or veteran status
Childbirth or related conditions
Sexual Orientation
Gender Identity or Gender Expression
Medical conditions (including genetic characteristics) 
Marital status

FEHA mainly covers businesses with 5 or more employees. But other laws may prohibit discrimination even at smaller employers.4

What if a protected trait impacts job duties? Consider disability. Firing someone solely for this reason is often illegal too.

Employers have a duty to help. They must engage in a good faith interactive process with the employee.

The goal? Find a reasonable accommodation if possible. This helps the employee perform essential job functions.

Your employer must participate sincerely in this process. Refusing to engage or merely pretending isn’t good faith. This failure could support a disability discrimination and wrongful termination claim.

How Can I Prove Wrongful Termination Based on Discrimination?

Employers rarely admit to firing someone for illegal reasons. They might claim poor performance or give no reason at all. But a false reason (known as pretext) doesn’t excuse discrimination. You may still have a wrongful termination claim.

How can you show discrimination was the real reason? Look for evidence and patterns. Examples might include:

Disparate treatment: Were performance standards applied differently to you compared to coworkers outside your protected class (e.g., different races, genders, or ages)?
Suspicious Timing: Did negative reviews or discipline suddenly start after your employer learned about your pregnancy, disability, or other protected status?
Biased Manager: Did problems begin after getting a new manager known for treating certain protected groups unfairly?

Proving discrimination usually involves a specific legal process. First, you need to establish a prima facie case. This means presenting enough evidence to suggest discrimination likely occurred. The exact facts needed depend on the case specifics.

Then, the legal burden shifts. Your employer must provide a legitimate, non-discriminatory reason for firing you.

If they can’t offer a valid reason, you may win your case. What if they do give a reason? You can still win but need to show their stated reason is just a pretext. Pretext means it’s likely a cover-up for the actual discriminatory motive. If a court finds the employer’s reason is pretextual, they can be held liable for wrongful termination.

Different kinds of cases may have different burdens of proof, however. The specifics can be quite complex, so it’s important to consult with an experienced employment lawyer.

Wrongful Termination Based On Protected Leave

Various laws protect your right to take necessary time off work. This often involves legally protected family or medical leave.

Your employer must honor legally protected leave requests. They can’t fire you for requesting this leave or for taking it. That kind of firing may be wrongful termination.

But California’s protected leave laws aren’t always universal. Unlike discrimination laws, not every employee qualifies. Eligibility often depends on factors such as:

Your employer’s size (total number of employees).
Your length of service (how long you’ve worked there).
Your total hours worked over the past year.

Remote work arrangements can add complexity too. It’s wise to consult an employment lawyer. They can clarify your specific rights under these laws.

If you qualified for leave and were fired, what must you prove? Typically, you need to show that your plan to take leave or your actual leave was a substantial motivating reason behind the termination decision.

Employers can’t fire you because they anticipate you taking leave soon. A common example is firing an employee shortly after learning she is pregnant.

Which Laws Guarantee California Workers the Right to Take Leave?

Several laws protect employee leave rights. Key federal laws include:

The Americans with Disabilities Act (ADA) requires employers to provide reasonable accommodations, including time off work, for employees with disabilities.
The Uniformed Services Employment and Reemployment Rights Act (USERRA) allows armed service members to take up to five years of leave for military service.
The Family and Medical Leave Act (FMLA) provides up to 12 weeks of unpaid leave per year for certain family and medical reasons. 

California’s leave laws often give more protection or apply more broadly than federal law. The California’s Family Rights Act (CFRA) is one of the most important examples. It’s similar to FMLA but the requirements are less strict.

For example, you only need to work for a company with 5+ employees to qualify for CFRA leave. You’d need to work for a company with 50+ employees to qualify for FMLA leave.

The CFRA generally provides eligible employees up to 12 weeks of unpaid, job-protected leave per year. Key reasons include your own serious health condition, caring for a family member with a serious healthcare condition, or bonding with a new child.Pregnancy Disability Leave

California offers other important leave protections:

California’s Pregnancy Disability Leave (PDL) law provides up to 4 months of unpaid leave for pregnancy or childbirth-related disabilities.
Under the California Domestic Violence Victim Employment Leave Law, employers with at least 25 employers must provide leave for reasons related to domestic violence, sexual assault, or stalking.
Under the California Family School Partnership Act (CFSPA), employers with at least 25 employees must allow workers to take up to 40 hours of unpaid leave each year for a child’s school-related activities.
The Healthy Workplace, Healthy Families Act guarantees paid sick leave, providing 1 hour for every 30 hours worked or 40 hours sick leave at the start of each year.5

California also protects employees who need time off for jury duty or court appearances,6 voting in statewide elections,7 drug and alcohol rehabilitation,8 or donating organs or blood marrow.9

This list highlights key leave laws. It isn’t exhaustive. Leave laws are complex and have specific notice and eligibility rules.

Think your right to protected leave was violated? It’s crucial to consult an experienced employment attorney. Our Complete Guide to Workplace Leave Laws in California offers more detailed information.

Wrongful Termination Based on Employer Retaliation

Firing an employee for exercising their legal rights is retaliation. Retaliation is illegal.

Various laws protect your right to engage in certain protected activities. Your employer can’t legally punish or fire you for these actions.

Many laws include anti-retaliation rules. We’ve already mentioned federal laws like the Age Discrimination in Employment Act (ADEA), Americans with Disabilities Act (ADA) and Family Medical Leave Act (FMLA). These and other laws like the Occupational Safety and Health Act (OHSA) and Fair Labor Standards Act (FLSA) also include protections against retaliation.

California often provides stronger state-level protections. Important California laws forbidding retaliation include the Fair Employment and Housing Act (FEHA), California Family Rights Act (CFRA), Pregnancy Disability Leave (PDL), and the Healthy Workplaces, Healthy Families Act.

What specific activities does California protect from retaliation? Common examples include:

Filing or assisting with discrimination complaints or lawsuits.
Filing a workers’ compensation claim after an injury.
Reporting or opposing an employer’s discriminatory practice or policy.
Reporting wage and hour violations (like unpaid overtime).
Requesting reasonable accommodation for a disability or religious practice.
Engaging in lawful off-duty conduct, including political activity.
Testifying truthfully in workplace investigations or legal proceedings.
Refusing to perform illegal or unsafe work orders.
Discussing wages or working conditions with coworkers (within legal limits).
Whistleblowing (reporting illegal activity, fraud, or waste by the employer).

Retaliation remains a serious workplace problem. Employees often face pushback for speaking out or asserting their rights. This pushback can include wrongful termination or threats of firing.

Think you were fired—or might be fired—for protected activity? It’s crucial to speak with an employment lawyer immediately. Contact us using the button above (on desktop) or below (on mobile).

Our Guide to Employer Retaliation Under California Law also provides more detailed information.

How California’s Whisteblower Protection Laws Guard Against Wrongful Termination

California strongly protects whistleblowers. Let’s see how these laws prevent wrongful termination.

The most important example is Labor Code § 1102.5, often called the California Whistleblower Protection Act. This law forbids employer rules that stop employees from whistleblowing. It also bans retaliation against employees who report suspected illegal acts.10

You’re protected if you report potentially illegal activity to:

Your employer
Government agencies
Law enforcement

Labor Code § 1102.5 has broad reach. It protects both public and private sector workers. This law covers more than just reporting illegal activity. Protection also extends to refusing to participate in unlawful acts requested by the employer.

This key law works alongside others. FEHA, for instance, also protects whistleblowers. It applies if the employee’s report involves unlawful discrimination or harassment.

Together, these laws build a strong shield for California workers. They encourage employees to report wrongdoing. You shouldn’t fear losing your job for legally protected whistleblowing.

Our article What California’s Whistleblower Laws Mean in the Workplace has more details.

The Public Policy Exception to At Will Employment in California

There’s another major exception to “at-will” employment. Employers can’t fire workers for reasons violating fundamental public policy in California. These types of wrongful termination cases are often called Tameny claims.

The name comes from a key California Supreme Court case: Tameny v. Atlantic Richfield Co. (1980) 27 Cal.3d 167. In that case, the court ruled that employers can’t fire employees for reasons that would go against a “substantial public policy.”

What does this cover? Basically, it covers policies protecting core societal values. Think public health, safety, and individual rights.

This principle often reinforces specific legal protections. Whistleblower rights or the right to take protected leave are examples, but the public policy exception can sometimes apply more broadly.

Here are potential examples of employee actions protected by public policy:

Exercising free speech rights (especially regarding workplace safety or issues impacting the public).
Participating lawfully in union activities.
Refusing to sign an illegal non-compete agreement (these are generally unenforceable in California).
Asserting legally guaranteed privacy rights.
Reporting an employer’s environmental violations or other illegal conduct.

Not every policy violation supports a Tameny claim. The public policy in question must be significant, fundamental, and clearly established at the time of the termination. It should be tied to specific constitutional principles or written laws.

Think your firing violated a public policy? These claims involve complex legal analysis, so it’s best to consult an experienced employment lawyer. We’re available to evaluate your specific situation and explain your potential options.

What Constructive Discharge Means in the Context of Wrongful Termination

Sometimes, quitting your job isn’t truly voluntary. Legally, it might be treated like a firing. This concept is called “constructive discharge.”

Constructive discharge happens when work conditions become intolerable, and your employer creates or knowingly allows the situation. A reasonable person in your situation would feel forced to resign. You essentially feel you have no other real choice.

The legal standard here is high. Simply disliking your job isn’t enough. Pressure to resign, while unpleasant, isn’t automatically illegal either. Usually, constructive discharge must stem from underlying illegal conduct. Think persistent harassment, discrimination, or retaliation that isn’t corrected.

Apart from that, you’ll need to show:

1) The working conditions were objectively intolerable.
2) Your employer knew or reasonably should have known about the conditions.
3) Your employer failed to take prompt and effective steps to fix the situation.
4) You resigned because of these intolerable conditions.

Successfully proving constructive discharge means your resignation is treated as a termination. You may then be entitled to similar remedies as in other wrongful termination cases. Let’s look at those potential remedies next.

Remedies and Damages for Wrongful Termination in California

If your employer fires you in violation of any of the rights we’ve discussed above, they can be held liable for wrongful termination.

In such cases, you may be entitled to the following remedies and damages: 

Back pay: Lost wages and benefits. Covers the period from termination until the case resolves (judgment or settlement).
Front pay: Compensation for future lost wages from the date of judgment going forward, until you’re expected to earn wages comparable to the position you lost.
Reinstatement: An order requiring the employer to give you your job back. This remedy is less common but possible.
Damages for Emotional Distress: Compensation for pain, suffering, anxiety, or harm to your reputation caused by the illegal firing. Sometimes called “special damages.”
Attorney’s Fees and Costs: The court might order your employer to pay your reasonable attorney’s fees and legal costs.
Punitive Damages: Extra damages meant to punish the employer. Requires proof of malice, oppression, or fraud by the employer.
Interest on Unpaid Wages: You may receive interest on unpaid wages owed to you.

Every case has unique facts. The court’s goal in awarding remedies is fairness. This includes compensating you for the harm suffered and deterring similar illegal conduct by employers in the future.

An experienced employment lawyer can explain the specific damages and remedies that might apply to your situation.

What to Know Before Filing a Wrongful Termination Claim in California

Were you wrongfully terminated in California or suspect you might be fired illegally soon? If so, taking prompt and focused action is important. Start documenting events and gathering potential evidence now.

Important initial steps include:

Document key events: Write down exactly what actions were taken against you. Note specific dates, times, and locations. Record what reasons your employer gave, if any. Do those reasons seem accurate or pretextual?
Describe your experience: How did the employer’s actions affect you professionally and personally? Did they impact your job performance or mental well-being? Did you raise concerns internally (e.g., to HR or your supervisor)? What was their documented response?
Gather potential proof: Identify coworkers who may have witnessed events or experienced similar issues (note contact info only if appropriate and permissible). Secure copies of relevant emails, text messages, or voicemails. Take clear screenshots of pertinent work-related messages (e.g., on Slack, Teams, or company platforms).
Act fast regarding access: Be aware: you might lose access to work email and systems instantly upon termination. If you anticipate being fired, try to preserve necessary evidence before that happens (following all laws and company policies).
Don’t record conversations without consent: California is a a two party consent state, so permission is needed to record confidential conversations. Recording without consent can result in legal action against you, and you won’t be able to use the recording as evidence. It’s better to take detailed notes.

Even without complete records, you likely still have legal options. An experienced attorney can help investigate and build your case using available information and legal tools.

The next crucial step is to contact an experienced California employment lawyer. They can evaluate the specifics of your situation.

Most offer a free initial consultation. This meeting helps you understand your rights and potential legal options. It’s confidential and carries no obligation to hire the firm.

An attorney explains the relevant laws and potential legal routes. They guide you through the complex process.

Be sure to ask whether the attorney works on contingency. This fee arrangement means the lawyer only gets paid if you recover money through a settlement or court award.

Strict legal deadlines—statutes of limitations—are also a critical factor. Let’s discuss those next.

California’s Statute of Limitations on Wrongful Termination Claims

Strict deadlines limit your time to file a wrongful termination lawsuit. These deadlines are known as statutes of limitations.

They vary based on your specific legal claim. Missing the deadline usually means losing your right to sue forever. Understanding these time limits is crucial.

For claims under California’s FEHA (covering discrimination, retaliation, or harassment), you generally must first file a complaint with the California Civil Rights Department (CRD). This filing typically must happen within 3 years of the illegal act or your discovery of it.

Limited extensions are sometimes possible but rarely granted. After the CRD process concludes and they issue a “right-to-sue” notice, you usually have 1 year from that notice date to file a lawsuit in court.

It’s important to note: each distinct illegal act may trigger its own separate deadline calculation. This means the time limit doesn’t just start from the first instance of discrimination, harassment, or retaliation. Instead, each new violation restarts the clock, giving you more time to take action.

Wrongful termination claims based on a violation of public policy (Tameny claims) typically have a shorter deadline. You generally must file a lawsuit directly in court within 2 years of the wrongful termination date.

Federal discrimination claims (like those under Title VII, ADA, or ADEA) follow different rules. You usually must file a charge first with the federal Equal Employment Opportunity Commission (EEOC). The deadline is very short: generally 180 calendar days from the discriminatory act. This sometimes extends to 300 calendar days if a state agency like the CRD also has jurisdiction and you file with them first.

Claims for breach of an employment contract also have specific deadlines in California. The limit is 4 years from the breach if the contract was written. For breaches of oral contracts, the deadline is shorter at 2 years.

These deadlines involve complex rules and potential exceptions. It’s vital to consult an experienced employment lawyer promptly. They can analyze your specific facts and determine the exact deadlines applying to your potential claims.

If you’re facing issues related to wrongful termination or other California labor laws, we can help clarify your rights. Contact us for a free, confidential consultation using the button above (desktop) or below (mobile).

Citations

  1. Cal. Lab. Code § 2922 (go back)
  2. Cal. Lab. Code § 2922 (go back)
  3. Cal. Gov’t Code §§ 12926(o), 12940(m) (go back)
  4. Cal. Gov’t Code § 12920 (go back)
  5. Cal. Lab. Code §§ 246, 233 (go back)
  6. Cal. Lab. Code §§ 230.2, 230.3 (go back)
  7. Cal. Elec. Code § 14000 (go back)
  8. Cal. Lab. Code §§ 1025-1028 (go back)
  9. Cal. Lab. Code §§ 1508-1513 (go back)
  10. Cal. Lab. Code § 1102.5 (go back)

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