California At-Will Employment Law

Frank S. Clowney III

Most employment relationships in the state of California are governed by the default rule of at-will employment. California at-will employment law allows an employer or employee to terminate a working relationship whenever they wish for nearly any reason including no reason at all. All employees, however, should be aware of the key exceptions and limitations to this at-will law and the protections available.

The Basics of At-Will Employment

At-will employment is different from contract-based employment in that it typically doesn’t involve an agreement between employer and employee in regard to the specific terms of employment. Such agreements include duration or employment, grounds for termination, and requirements for notice. At-will employment essentially gives both parties flexibility. An employee or employer needs to provide a reason for the terms they separate.

Despite the flexibility of at-will employment, it does not give employers absolute freedom to fire their employees based on illegal terms such as discrimination. It also does not protect employers from having a claim taken out against them if they wrongfully terminate an employee. Unfortunately for many employees, employers will look to mask illegal terminations on legal grounds.

Exceptions to At-Will Employment

Because there are specific employment laws and regulations in place in California, and the country, at-will employment is not completely ‘at will’. There are certain exceptions that protect employees from being wrongfully and unlawfully fired.

  • Discrimination. There are both federal and state laws that protect all employees of a protected class from discrimination in the workplace. The California Fair Employment and Housing Act (FEHA) prohibits any form of discrimination on the basis of age, race, gender, sexual orientation, pregnancy, religion, and many other protected characteristics. These characteristics cannot be legally used as grounds for termination by an employer.
  • Retaliation. An employer cannot take adverse action against an employee in any way for participating in a legally protected activity. Retaliatory acts often occur after an employee has reported violations committed by an employer or for reasons such as taking a protected leave of absence or discussing wage and salaries. Sudden changes to performance reviews, being denied a promotion, or a sudden firing are all potential retaliatory acts.
  • Public policy. The public policy exception prohibits employers from firing at-will employees for reasons that go against a well-established public policy of the state. This includes terminating an employee for exercising their legal rights, such as filing a workers’ compensation claim, refusing to take part in an illegal act, performing legally required duties, like jury duty, and several other civil and ethical duties.
  • Implied contract. An implied contract can exist between employee and employer even if there is no formal written employment agreement. It can be based on employer statements, actions, or policies that reasonably lead employees to believe they will have continued employment.An implied contract may take effect if an employer verbally ensures job security for employees, only terminates employees for good reason, or an employee handbook states that the employer will follow a specific procedure for termination.
  • Implied covenant of good faith and fair dealing. Not many states in the US recognize an implied covenant of good faith and fair dealing when it comes to at-will employment, but California does. State law makes it so that good faith and fair dealing are implied, legally binding promises between all parties of an employment agreement. It is a promise that they will act in good faith, without malice, and avoid unfair practices.This covenant can be breached if an employer fires an employee to avoid giving them benefits or for malicious reasons.

These exceptions, and others like them, are illegal on behalf of employers when it comes to separating from employees. Employees have a right to work without fear of termination for unjust causes.

FAQs

Can You Be Fired Without Warning in California?

You can be fired without warning in California. Since California is an at-will state, not only can you be fired at any time, but you can also be fired without warning or notice. Employers are not legally required to give a warning before terminating an employee and may not do so unless it is a part of an employment contract.

Can I File a Claim if I Believe I Was Wrongfully Terminated?

You can file a claim against an employer if you believe you were wrongfully terminated, even if your employment was at will. If you can prove that your former employer terminated you for illegal reasons, such as a breach of implied contract, discrimination, or retaliation for taking part in a protected activity, you may have a case. You can speak to an employment lawyer to learn more about your rights and legal options.

Can an At-Will Employee’s Status Be Changed to a Contract Employee by Their Employer?

An at-will employee’s status can be changed to contract-based employment by their employer as long as both parties agree to the change and the terms of a formal contract. During their employment, an at-will employee may be offered a different role within a company, a longer-term contract, or a contract with specific terms.

How Does Constructive Termination Relate to At-Will Employment?

Constructive termination happens when an employer intentionally creates a work environment or working conditions that are intolerable and, in turn, forces an employee to quit. Constructive termination itself is not illegal, but it can be considered a form of wrongful termination if the intolerable working conditions were a result of some kind of illegal or improper conduct on the part of the employer.

California Employment Lawyer

If you would like more information or are in need of helpful legal advice regarding at-will employment issues, contact The Law Office of Frank S. Clowney III to consult with one of our employment lawyers. If you believe you were wrongfully terminated, we can review the details of your case, inform you of your rights, and determine the strength of your claim. Our team can provide you with the guidance you need throughout the process.