Wrongful Termination

Most employees in California are at-will, meaning that the employment contract is for no specific period of time. In most circumstances the employer can terminate the employment contract without any reason for doing so.

However, some kinds of terminations violate California law. Generally speaking, these “wrongful terminations” fall into a few broad categories:

1) the employer breaches a contract that sets a specific time period for the employment;

2) the employer violates public policy; or

3) the employer violates a statute designed to protect certain classes of individuals.

In these situations, the employee may have a valid claim for wrongful termination and be entitled to recover damages.

Termination in Violation of the Employment Contract

Employment contracts can be written, oral or implied by the circumstances of the employment. Such contracts may create an exception to the general rule that an employee can be terminated at will. Examples of such contracts are those that require “good cause” before an employee can be fired, those that guarantee employment for a set period of time, and those that require the employer to take certain steps or disciplinary measures prior to termination.

However, to be clear, these kinds of contracts are relatively rare these days.

Termination in Breach of the Covenant of Good Faith and Fair Dealing

The California Supreme Court has held that all employment contracts contain an implied covenant of good faith and fair dealing. That covenant provides that neither the employer nor the employee may engage in conduct that denies the other benefit of the contract.

For example, if an employer offers a job to an employee who moves from one state to another to take that job, but then fails to let the employee work or receive the full benefits of that job, there may be a breach of the covenant of good faith and fair dealing.

Termination in Violation of Public Policy

A termination in violation of public policy occurs when an employer takes actions that are harmful to the public or the good of the public. The policy at issue must affect a fundamental public interest and be grounded in a statute.

Some examples include:

• Reporting unsafe working conditions;
• Reporting wage and hour violations;
• Discussing wages with a co-worker;
• Making discrimination or harassment claims;
• Missing work to attend jury duty;
• Taking time off to visit a school at the request of a child’s teacher;
• Participating in activities at a child’s school;
• Caring for a sick family member; or
• Attending alcohol or drug rehab.