Losing a job does not automatically mean that an employee was wrongfully terminated.
California is generally an at-will employment state. In most cases, an employer may terminate an employee with or without cause, and an employee may leave a job at any time. However, an employer generally cannot terminate an employee for an illegal reason.
Understanding that distinction is the starting point for evaluating a potential wrongful termination claim.
What Is Wrongful Termination in California?
Wrongful termination generally occurs when an employee is fired in violation of a statute, an employment contract, or an important public policy.
In practical terms, the key question is usually not simply:
“Was the termination unfair?”
The more important legal question is:
“Why was the employee terminated, and was that reason prohibited by law?”
An employer may make a decision that an employee considers unfair, unreasonable, or mistaken without necessarily creating a wrongful termination claim. The legal analysis usually focuses on whether the termination was connected to a legally protected status, protected activity, contractual right, or recognized public policy.
What Are Common Examples of Wrongful Termination?
Potential wrongful termination claims may arise when an employee is terminated because of:
1. Discrimination
California's Fair Employment and Housing Act (FEHA) prohibits covered employers from discriminating against employees based on protected characteristics, including race, national origin, sex, disability, age (40 and over), religion, sexual orientation, gender identity or expression, and certain other protected categories.
A termination motivated by unlawful discrimination may support a wrongful termination claim.
2. Retaliation
An employer generally cannot terminate an employee because the employee engaged in legally protected activity.
Examples may include reporting discrimination or harassment, requesting certain legally protected accommodations, participating in an investigation, or opposing conduct the employee reasonably believes is unlawful.
3. Whistleblower Activity
California law provides protections in certain circumstances for employees who report suspected violations of law to appropriate persons or government agencies.
An employer may face liability if an employee is terminated because of protected whistleblowing activity.
4. Protected Medical or Family Leave
Depending on the circumstances, employees may have rights under laws such as the California Family Rights Act (CFRA), the federal Family and Medical Leave Act (FMLA), or other California leave laws.
Terminating an employee because the employee exercised a protected leave right may create legal exposure.
5. Disability and Reasonable Accommodation
California law may require an employer to reasonably accommodate a qualified employee with a disability and to participate in a good-faith interactive process, unless an exception applies.
A termination connected to an employee's disability or accommodation request therefore requires careful factual and legal analysis.
6. Violation of Public Policy
California also recognizes a claim for wrongful termination in violation of public policy in certain circumstances.
For example, a claim may arise when an employee is terminated for refusing to engage in unlawful conduct or for exercising an important statutory right.
Is Every Unfair Termination Wrongful Termination?
No.
This is one of the most important distinctions in California employment law.
A termination can feel unfair without necessarily being unlawful. Poor management, personality conflicts, disagreements over performance, workplace politics, or an employer's mistaken judgment do not automatically establish wrongful termination.
The existence of a legal claim depends on the reason for the termination and the evidence connecting the employment decision to unlawful conduct.
How Is Wrongful Termination Proven?
Employment cases often turn on evidence rather than labels.
Relevant evidence may include:
- Emails and text messages;
- Performance evaluations;
- Disciplinary records;
- Personnel records;
- Internal complaints;
- Medical accommodation communications;
- Leave requests;
- Witness testimony;
- Employer policies and handbooks;
- The timing between protected activity and termination;
- Explanations given by the employer for the termination; and
- Evidence regarding how similarly situated employees were treated.
Timing can be important, but timing alone does not necessarily prove retaliation or discrimination.
For example, if an employee makes a discrimination complaint and is terminated shortly afterward, the timing may raise questions. The employer, however, may have evidence showing a legitimate, non-discriminatory and non-retaliatory reason for the decision.
The entire factual record matters.
What Is a Pretext in a Wrongful Termination Case?
In many employment discrimination and retaliation cases, an employer will identify a legitimate reason for termination, such as poor performance, misconduct, attendance problems, restructuring, or violation of workplace policies.
The employee may then attempt to show that the stated reason was not the true reason for the termination.
This is commonly referred to as pretext.
Evidence of pretext may include inconsistent explanations, unusual deviations from normal procedures, contradictory documents, discriminatory or retaliatory statements, or other evidence suggesting that the employer's stated reason is not credible.
However, disagreement with the employer's business decision, standing alone, does not necessarily establish pretext.
What Should an Employee Do After a Potentially Wrongful Termination?
An employee who believes a termination may have been unlawful should preserve relevant evidence and create an accurate timeline of events.
Important information may include:
- When the employee engaged in protected activity;
- Who knew about that activity;
- When the termination decision was made;
- Who participated in the decision;
- What reason the employer gave;
- Whether that reason changed over time; and
- What documents support or contradict the explanation.
Employees should also be aware that employment claims are subject to deadlines. The applicable deadline depends on the particular claim and circumstances.
What Should Employers Do Before Terminating an Employee?
For employers, termination decisions should be supported by legitimate business reasons and consistent documentation.
Before making a significant termination decision, an employer should consider whether the employee recently:
- Made a discrimination or harassment complaint;
- Requested medical accommodation;
- Took or requested protected leave;
- Reported suspected unlawful conduct;
- Filed a workers' compensation claim;
- Participated in an investigation; or
- Engaged in another legally protected activity.
The existence of protected activity does not mean an employee cannot be terminated. It does mean that the employer should carefully evaluate whether the legitimate reason for termination is well documented and independent of the protected activity.
Consistency is particularly important. Employers should consider whether policies and performance standards are being applied consistently to similarly situated employees.
What Damages May Be Available in a Wrongful Termination Case?
Depending on the legal claims and facts involved, potential remedies may include lost wages, lost benefits, emotional distress damages, attorney's fees, and in some circumstances punitive damages or other statutory remedies.
The availability and amount of damages vary significantly from case to case.
Wrongful Termination Often Comes Down to One Question: Why?
Employment disputes frequently involve two very different versions of the same termination.
An employee may believe:
“I was fired because I complained.”
The employer may respond:
“The termination was based on documented performance problems that existed independently of the complaint.”
The legal analysis therefore requires more than asking whether a termination occurred shortly after a complaint, leave request, accommodation request, or other protected activity.
The stronger question is:
What does the evidence show was the actual reason for the employment decision?
That is why emails, documents, timelines, witness testimony, policies, and consistency in decision-making often become critical in wrongful termination litigation.
California Wrongful Termination Attorney
Wrongful termination cases are highly fact-specific. Whether a termination violates California law depends on the reason for the employment decision, the applicable legal protections, and the available evidence.
Employees who believe they were terminated because of discrimination, retaliation, whistleblowing, protected leave, disability accommodation, or another protected activity may benefit from having the circumstances reviewed promptly.
Employers facing a termination decision or wrongful termination claim may likewise benefit from reviewing the documentation, decision-making process, and applicable California employment laws before a dispute escalates.
Yuki Jin provides legal services relating to California employment law, civil litigation, and business matters in the San Gabriel Valley and Greater Los Angeles area.
Disclaimer
This article is provided for general informational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship.