What You Need to Know About Wrongful Termination Laws in California

Shahzad Masood

TERMINATION LAWS IN CALIFORNIA

According to Crunchbase News, at least 95,000 workers at U.S.-based tech companies were laid off in 2024, with the cuts continuing into 2025. A company may terminate their employee if they fail to meet job expectations, miss sales targets, or consistently receive negative performance reviews.

If you experienced wrongful dismissal, you can consult an employment lawyer to know your next steps. Each state has their own laws regarding illegal dismissal. For example, wrongful termination laws in California protect employees from being fired for illegal reasons, such as discrimination, retaliation, or violating their employment contract.

If you believe you have been wrongfully terminated, you can pursue legal action against your employer and seek damages.

Understanding Wrongful Termination in California

It is important to understand that not every case of being laid off implies wrongful termination. An employer has the right to hire and fire based on various factors of termination, such as poor performance or business constraints.

Wrongful termination occurs when someone is fired without just cause or on the basis of their race, sexual orientation, or other protected characteristics under state or law. California adheres to the “at-will” employment law, which allows for the immediate termination of employees without a specified cause.

If you feel your firing was not rightfully done, make sure you collect evidence and record the relevant data. Understanding what “wrongful termination” entails will help you make informed decisions to address the situation.

Legal Grounds for Wrongful Termination Claims

Understanding the legal framework for wrongful termination in California is important to protect your rights as a worker. 

Legal actions can be done if the dismissals are done on the basis of discrimination. Another possible ground for a lawsuit is retaliation. It is prohibited for employers to fire their workers who report cases of harassment or file a workers’ compensation claim.

Employers who have breached an employment contract may, on grounds of wrongful termination, be assessed damages. 

Another ground for suing for wrongful termination is the violation of public policy. This can happen when the company fires you for refusal to commit acts that violate an established public policy, such as federal or state law or regulation.

Employee Rights Under California Law

Aside from protection against illegal dismissals, California law also protects employees from harassment. If you raise issues while at work or engage in legal proceedings, you may not face dismissal. Different types of employees in California have various pay and duty protections that are detailed in the local state laws. 

If you receive a layoff notice, you still have the right to choose between accepting the notice of termination or getting paid instead, including any temporary conditions that apply. 

Knowledge of these rights empowers you to assert your rights when necessary. 

Steps to Take If You Believe You’ve Been Wrongfully Terminated

A quick action is important following wrongful termination from work. Document anything connected with the termination, such as emails, performance appraisals, write-ups, or evidence of correspondence with your employer.

If possible, get witness statements to support your case against wrongful termination. Review your employee handbook and check other relevant policies to see if a violation was made. Don’t hesitate to ask an encouraging, trusted coworker or mentor for advice and moral support.

Consult a wrongful termination lawyer to fully understand the violations and be advised on the best way to address the issue. 

The Role of Employment Contracts and At-Will Employment

Employment contracts and at-will employment significantly impact wrongful termination cases in California. 

When you have a written or oral agreement detailing your employment terms, variations in these contracts protect you from actual wrongful termination. For example, if the contract specifies the terms of termination, a wrongful termination defense may be deemed invalid. 

Always examine your employment agreements closely. These documents cover your rights and obligations. Familiarizing yourself with your employment contracts will be beneficial if you have been terminated wrongfully. 

Seeking Legal Assistance and Resources Available

Dealing with the complications of wrongful termination can be overwhelming and confusing. Prioritize consulting an employment lawyer who is experienced in wrongful termination cases. They can use their expertise and knowledge of employment law to secure a favorable outcome for your case. 

Approach various establishments for assistance. The California Department of Fair Employment and Housing (DFEH) offers valuable insights regarding your rights and filing complaints.  

Local legal aid clinics offer free or low-cost consultations, which you can take advantage of. Promptly seeking legal assistance and engaging with available resources is a key step to recovering lost wages or damages caused by wrongful termination. 

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