What Is Wrongful Termination in California?
Wrongful termination in California occurs when an employer fires an employee for an illegal reason, such as discrimination, retaliation, or exercising a legal right. California is an at-will employment state, meaning that employers can generally terminate employees at any time, for any reason, or for no reason at all. However, "at-will" does not mean "for any reason whatsoever." When an employer fires someone for an illegal reason, that termination crosses the line into wrongful discharge, and the employee has the right to take legal action.
Wrongful termination occurs when an employer fires, lays off, or forces out an employee in violation of California or federal law. The most common illegal reasons include firing someone because of their race, gender, age, disability, or other protected characteristic under the California Fair Employment and Housing Act (FEHA), Government Code Section 12940. But wrongful termination extends well beyond discrimination. An employer who fires a worker for reporting safety violations, filing a workers' compensation claim, taking legally protected medical leave, or refusing to engage in illegal activity has also committed wrongful termination.
Key Takeaways
- Wrongful termination in California occurs when an employer fires an employee for an illegal reason, including discrimination, retaliation, whistleblowing, or exercising a legal right.
- The statute of limitations for filing a wrongful termination complaint with the California Civil Rights Department (CRD) under FEHA is three years from the date of termination.
- California employees may recover lost wages, emotional distress damages, punitive damages, and attorney's fees in a successful wrongful termination lawsuit.
- Under SB 497, a rebuttable presumption of retaliation arises if an employer terminates an employee within 90 days of the employee engaging in protected activity.
- Employers are liable for wrongful termination even in at-will employment when the firing violates a statute, public policy, or an implied employment contract.
At Bluestone Law, our Los Angeles wrongful termination lawyers understand how devastating it is to lose your livelihood. From our Canoga Park office, we represent workers across Los Angeles and throughout California, fighting to hold employers accountable and recover the compensation our clients deserve.
Common Types of Wrongful Termination
Wrongful termination claims in California can arise from a wide range of employer misconduct. Below are the most frequent categories we see in our practice representing employees throughout Southern California.
Discrimination-Based Termination
Discrimination-based wrongful termination occurs when an employer fires a worker because of a protected characteristic such as race, national origin, gender, sexual orientation, age (40 and older), disability, religion, pregnancy, or marital status. These protections come primarily from FEHA (Government Code Sections 12900-12996) and apply to employers with five or more employees. If the real reason you were let go was your membership in a protected class, you may have a strong wrongful termination claim. Learn more about how we handle these cases on our employment discrimination page.
Retaliation for Protected Activity
Retaliatory termination is illegal under California law when an employer fires an employee for engaging in protected activity. This includes reporting workplace safety hazards to Cal/OSHA, filing a wage complaint with the Labor Commissioner, reporting workplace harassment, or participating as a witness in a coworker's discrimination claim. Under Labor Code Section 1102.5, employees who blow the whistle on illegal conduct enjoy particularly strong protections. Visit our retaliation page for a deeper look at your rights.
What Is Wrongful Termination in Violation of Public Policy?
Wrongful termination in violation of public policy occurs when an employer fires a worker for reasons that contradict fundamental California public policies, even without a specific statute. Classic examples include terminating an employee for refusing to commit a crime, exercising a legal right such as voting or serving on a jury, or performing a civic obligation. The California Supreme Court established this important exception to at-will employment in the landmark case Tameny v. Atlantic Richfield Co.
Breach of an Implied or Express Contract
An employer breaches an implied or express employment contract when it terminates an employee despite promises of job security made through an employment contract, an employee handbook, or verbal assurances. California courts look at the totality of the employment relationship, including the duration of your employment, regular promotions, and company policies, to determine whether an implied contract existed.
What Happens If You Are Fired While on Medical Leave?
Firing an employee for taking or requesting leave under the California Family Rights Act (CFRA), the Family and Medical Leave Act (FMLA), or pregnancy disability leave is illegal in California. Employees who are terminated while on approved medical or family leave, or shortly after returning, may have grounds for a wrongful termination claim. Our family and medical leave page covers these protections in greater detail.
What Damages Can You Recover in a Wrongful Termination Case?
California wrongful termination victims may be entitled to substantial compensation covering economic losses, emotional harm, and punitive damages. Our attorneys pursue every category of damages available under the law to make sure our clients are fully compensated.
- Lost wages and benefits: This includes back pay (what you would have earned from the date of termination to the date of judgment) and front pay (projected future earnings if reinstatement is not practical). It also covers lost health insurance, retirement contributions, bonuses, and stock options.
- Emotional distress damages: Losing your job under wrongful circumstances causes real emotional harm. California law allows you to recover compensation for anxiety, depression, humiliation, and other emotional suffering caused by your employer's illegal conduct.
- Punitive damages: When an employer acts with malice, oppression, or fraud, a jury may award punitive damages to punish the employer and deter similar behavior. These awards can be substantial and are separate from compensatory damages.
- Attorney's fees and costs: Many California employment statutes, including FEHA and various Labor Code provisions, allow prevailing employees to recover their attorney's fees from the employer.
The value of a wrongful termination case depends on many factors, including your salary, the strength of the evidence, the severity of the employer's conduct, and the emotional impact on you and your family. During your free consultation, we will evaluate your situation and give you an honest assessment of your potential recovery.
What to Do If You Were Wrongfully Terminated
The steps you take immediately after an illegal termination can significantly affect the outcome of your case. Our Los Angeles wrongful termination attorneys recommend the following.
Document Everything
Write down the details of your termination while they are fresh in your memory. Note the date, time, location, who was present, and what was said. Save any written communications, including emails, text messages, and termination letters. If you received performance reviews, commendations, or awards before your firing, gather those as well. This evidence can be critical in showing that your termination was pretextual.
Do Not Sign a Severance Agreement Without Legal Review
Many employers offer severance packages that include a release of all legal claims. While severance pay can be helpful in the short term, signing a release without understanding your rights could mean giving up a claim worth far more. Our attorneys can review any severance offer and advise you on whether it is fair.
File a Complaint with the California Civil Rights Department
For discrimination and retaliation claims under FEHA, you generally must file a complaint with the California Civil Rights Department (CRD), formerly known as the DFEH, before you can file a lawsuit. You can request an immediate right-to-sue notice, which allows your attorney to proceed directly to court. The statute of limitations for filing with the CRD is three years from the date of the wrongful termination, but we strongly recommend acting as soon as possible while evidence is fresh.
Contact an Experienced Wrongful Termination Lawyer
Employment law is complex, and employers have legal teams working to protect their interests. You deserve an advocate who is equally prepared. At Bluestone Law, we represent employees throughout California in wrongful termination cases. We handle cases on a contingency fee basis, meaning you pay nothing unless we recover compensation for you.
Frequently Asked Questions
How long do I have to file a wrongful termination claim in California?
The statute of limitations for filing a wrongful termination complaint under FEHA with the California Civil Rights Department is three years from the date of termination. For claims based on breach of contract or violation of public policy, the deadline may be two to four years depending on the legal theory. Acting quickly preserves evidence and strengthens your case.
Can I sue for wrongful termination if I was an at-will employee in California?
Yes, at-will employees can sue for wrongful termination in California. At-will employment means an employer can fire you for any lawful reason, but it does not permit termination for an illegal reason such as discrimination, retaliation, whistleblowing, or exercising a legal right. If your firing violated a statute or public policy, you have a valid claim regardless of your at-will status.
What is the average settlement for wrongful termination in California?
Wrongful termination settlements in California vary widely based on factors such as lost wages, emotional distress, the strength of the evidence, and whether punitive damages are likely. Cases can settle anywhere from tens of thousands to several million dollars. An experienced employment attorney can evaluate your specific facts and provide an honest assessment of your case's value during a free consultation.
Do I need to file with the CRD before suing my employer for wrongful termination?
For wrongful termination claims based on discrimination or retaliation under FEHA, you must first file a complaint with the California Civil Rights Department (CRD) and obtain a right-to-sue notice before filing a lawsuit. You can request an immediate right-to-sue notice, allowing your attorney to proceed directly to court without waiting for the CRD to investigate.
Can I be fired for reporting harassment or unsafe working conditions in California?
No. California law prohibits employers from firing employees for reporting harassment, discrimination, safety violations, or other illegal conduct. Terminating an employee for reporting such conduct constitutes both wrongful termination and illegal retaliation under statutes including Labor Code Section 1102.5 and Government Code Section 12940(h). Employees who are fired for reporting misconduct may recover lost wages, emotional distress damages, and punitive damages.
If you believe you were fired illegally, contact Bluestone Law today for a free, confidential consultation. Call us at (310) 363-0975 or fill out our online contact form. We will review your situation, explain your legal options, and help you decide on the best path forward. You do not have to face this alone.