Fired from an At-Will Job in California? You Might Still Have a Case

Most California employees are considered “at-will,” meaning they can be let go at any time, with or without cause. But that doesn’t mean your employer can fire you for an illegal reason—and many do.

If you were recently fired and told it was “just business,” you might still have legal grounds to take action. At-will employment is not a free pass for discrimination, retaliation, or other unlawful termination practices.

At-Will vs. Wrongful Termination

At-will employment means employers can generally terminate employees for any legal reason or no reason at all. Wrongful termination occurs when an employee is fired for reasons that violate state or federal laws, public policy, or contractual obligations.

The critical difference centers on legality:

• At-will termination: Firing due to poor performance, business restructuring, personality conflicts, or even arbitrary reasons (as long as they’re not discriminatory or retaliatory)
• Wrongful termination: Firing based on discrimination, retaliation, whistleblower activities, taking protected leave, or other legally protected reasons

Even in an at-will employment relationship, terminations must comply with anti-discrimination laws, whistleblower protections, and public policy considerations.

California’s At-Will Employment Doctrine

California Labor Code Section 2922 establishes that employment relationships without specified terms are presumed to be “at-will.” Under this doctrine, employers can terminate employees for virtually any reason—or no reason at all—without advance notice. Similarly, employees can quit their jobs at any time without consequence.

At-will employment allows employers to:

• Terminate employees without providing a reason
• Fire workers without progressive discipline or warnings
• Eliminate positions due to restructuring or budget cuts
• Make personnel changes based on business needs
• End employment relationships immediately

The at-will doctrine gives California employers significant flexibility in managing their workforce, allowing them to adapt quickly to changing business conditions.

When Termination Becomes Wrongful

Wrongful termination occurs when an employee is fired for reasons that violate state or federal laws, public policy, or contractual obligations. These illegal terminations typically fall into several major categories:

• Discrimination: Firing based on protected characteristics such as race, age, gender, disability, pregnancy, religion, sexual orientation, or gender identity violates the California Fair Employment and Housing Act (FEHA)
• Retaliation: Terminating employees for engaging in legally protected activities like reporting discrimination, requesting accommodations, filing wage claims, or participating in investigations.
• Whistleblower Protection: California Labor Code Section 1102.5 prohibits firing employees for reporting illegal activities, refusing to participate in illegal conduct, or exercising legal rights.
• Protected Leave Violations: Terminating workers for taking legally protected leave under laws like the California Family Rights Act (CFRA, pregnancy disability leave, or other medical leave protections.
• Contract Violations: Firing that violates explicit terms in an employment contract, collective bargaining agreement, or employee handbook may constitute wrongful termination.

When these circumstances apply, employees may have valid wrongful termination claims, despite California’s at-will employment doctrine.

Common Exceptions to At-Will Employment

Several important exceptions limit employers’ ability to terminate employees at will.

Public Policy Exception

California recognizes a “public policy exception” to at-will employment. This means employers cannot fire workers for reasons that violate fundamental public policies expressed in state or federal constitutions, statutes, or regulations.

Examples include:

• Firing an employee for refusing to commit illegal acts
• Terminating a worker for reporting illegal activity (whistleblowing)
• Dismissing an employee for exercising a legal right, such as filing a workers’ compensation claim
• Firing someone for performing a legal obligation, like jury duty

Implied Contract Exception

Even without a formal written contract, an implied employment contract may exist based on:

• Verbal promises about job security
• Written statements in employee handbooks or policy manuals
• Length of service and consistent positive reviews
• Company practices regarding termination procedures

If an implied contract exists, employers must follow the terms of that agreement when terminating employment.

Covenant of Good Faith and Fair Dealing

California law recognizes an implied covenant of good faith and fair dealing in employment relationships. This prevents employers from:

• Terminating employees to avoid paying earned bonuses or commissions
• Fabricating reasons for termination
• Misrepresenting the true reasons for termination

These exceptions provide important protections for California workers beyond basic at-will employment rules.

How to Identify Wrongful Termination

If you’ve been terminated, consider these factors that may indicate wrongful termination:

• Timing: Termination shortly after engaging in protected activity (like reporting harassment or requesting accommodation) suggests potential retaliation.
• Inconsistent Treatment: Being treated differently from similarly situated colleagues who don’t share your protected characteristic.
• Shifting Explanations: Employers changing their stated reasons for termination may be covering up illegal motives.
• Deviation from Policies: Failure to follow established disciplinary procedures or company policies before termination.
• Discriminatory Comments: Statements or behaviors from supervisors or managers showing bias against protected characteristics.
• Positive Performance: Termination despite a history of positive performance reviews and no documented performance issues.

Document everything related to your termination, including communications, performance reviews, and witness information. This evidence may be crucial if you decide to pursue legal action.

Steps to Take If You Suspect Wrongful Termination

If you believe you’ve been wrongfully terminated, consider these important steps:

• Document Everything: Preserve all communications, performance reviews, and evidence related to your termination. Take detailed notes about conversations, including dates, times, and witnesses.
• Request Your Personnel File: Under California Labor Code Section 1198.5, you have the right to inspect and receive a copy of your personnel records.
• File for Unemployment: Apply for unemployment benefits while pursuing your wrongful termination claim. Your employer’s response to your unemployment claim may reveal inconsistencies in their termination rationale.
• Consult an Employment Attorney: Speak with a California employment lawyer who handles wrongful termination cases.
• File Administrative Complaints: For discrimination or retaliation claims, file a complaint with the California Civil Rights Department within three years of the termination.
• Consider Settlement Options: In some cases, negotiating a severance agreement may be preferable to litigation. An attorney can help evaluate settlement offers.

Taking these steps promptly improves your chances of successfully challenging a wrongful termination.

Frequently Asked Questions

Can my employer fire me without providing a reason in California?

Yes. Under California’s at-will employment doctrine, employers generally don’t need to provide a reason for termination. However, they cannot fire you for discriminatory or retaliatory reasons, even if they don’t state those reasons.

Does my employer need to give me a warning before firing me?

No. Unless specified in an employment contract or company policy, California employers aren’t legally required to provide warnings or follow progressive discipline before termination. However, deviation from established discipline procedures may be evidence of wrongful termination.

Can I be fired while on medical leave?

Not for taking the leave itself. California law prohibits terminating employees for taking legally protected leave, such as CFRA or pregnancy disability leave. However, employers can terminate employees on leave for legitimate business reasons unrelated to the leave, such as company-wide layoffs.

What damages can I recover in a wrongful termination lawsuit?

Potential damages include lost wages and benefits (both past and future), emotional distress damages, punitive damages in cases of egregious conduct, and attorney’s fees and costs. The specific damages available depend on the nature of your wrongful termination claim.

Protecting Your Rights in California’s Employment Landscape

California’s employment laws create a careful balance between employer flexibility and employee protection. While at-will employment remains the default arrangement, significant legal protections exist to prevent discrimination, retaliation, and other illegal terminations.

If you believe you’ve been wrongfully terminated, TONG LAW can help evaluate your case, explain your options, and fight for the compensation you deserve. Contact us today for a consultation about your specific situation.

This blog post provides general information for educational purposes only and should not be construed as legal advice. Every employment situation is unique. Please contact an attorney for advice specific to your circumstances.