What Is Wrongful Termination in California?
Wrongful termination in California occurs when an employer fires an employee for an illegal reason — including discrimination, retaliation, whistleblowing, or violation of public policy. California is an at-will employment state under Labor Code § 2922, so employers can generally end an employment relationship for any reason. But “at-will” is not a license to fire for any reason. When an employer’s motive is discriminatory, retaliatory, or otherwise unlawful, the termination is wrongful and the employee has the right to sue.
California’s wrongful termination protections are among the strongest in the nation. The Fair Employment and Housing Act (FEHA), Government Code §§ 12900–12996, covers employers with five or more employees and protects a broad list of characteristics. The California Supreme Court in Rojo v. Kliger, 52 Cal. 3d 65 (1990), confirmed that FEHA must be interpreted liberally to accomplish its remedial purpose.
Key Takeaways
- At-will employment does not authorize firing for discriminatory, retaliatory, or public-policy-violating reasons.
- The CRD complaint deadline for FEHA claims is three years from the termination (Gov. Code § 12960).
- Recoverable damages include back pay, front pay, emotional distress, punitive damages, and attorney’s fees.
- Under SB 497 (2023), a rebuttable presumption of retaliation arises when termination follows protected activity within 90 days.
- Bluestone Law handles every wrongful termination case on contingency — no fee unless you recover.
California Wrongful Termination Laws
Fair Employment and Housing Act (FEHA)
FEHA is the cornerstone of California employment law. Government Code § 12940 prohibits employers from terminating employees because of race, color, ancestry, national origin, religion, sex, gender identity or expression, sexual orientation, marital status, pregnancy, age (40+), disability, medical condition, genetic information, or military/veteran status. FEHA applies to employers with five or more employees for most protections; for sexual harassment, even single-employee workplaces are covered. If your firing was motivated by who you are, see our employment discrimination practice page for a deeper look at FEHA claims.
Labor Code § 1102.5 — Whistleblower Protection
Labor Code § 1102.5 prohibits employers from retaliating against employees who disclose — or are reasonably believed to have disclosed — a violation of law to a government agency, law enforcement, or the employer itself. Under SB 497, a rebuttable presumption of retaliation arises if termination follows a covered disclosure within 90 days; the employer must then prove a legitimate, non-retaliatory reason by clear and convincing evidence. Our whistleblower protection page covers these claims in detail.
California Family Rights Act (CFRA)
Government Code § 12945.2 gives eligible employees at employers with five or more employees up to 12 weeks of unpaid, job-protected leave per year. Firing an employee for taking, requesting, or being eligible for CFRA leave is illegal retaliation, and California separately mandates Pregnancy Disability Leave (PDL) for up to four months. Learn more on our family & medical leave page.
Tameny Claims — Termination in Violation of Public Policy
In Tameny v. Atlantic Richfield Co., 27 Cal. 3d 167 (1980), the California Supreme Court held that even in an at-will state, employers cannot terminate employees for reasons that contravene fundamental public policy — refusing to commit perjury, reporting a crime, filing a wage claim, serving on a jury, or exercising the right to vote. A Tameny claim is a tort, not a contract claim, so it supports emotional distress and punitive damages that a pure breach-of-contract action would not.
Federal Protections
Federal law provides a parallel framework: Title VII of the Civil Rights Act (employers with 15+ employees), the ADEA for workers 40 and older (20+ employees), and the ADA for qualified individuals with disabilities (15+ employees). California employees can typically pursue state and federal claims simultaneously, but FEHA usually offers stronger protections, broader coverage, and no caps on damages.
Less Obvious Forms of Wrongful Termination
Two theories are frequently overlooked. First, breach of implied contract: under Foley v. Interactive Data Corp., 47 Cal. 3d 654 (1988), employee handbooks promising termination only for cause, oral assurances of job security, long tenure with consistent promotions, and industry custom can together create an implied contract that limits the employer’s right to fire — no discriminatory motive required. If your dispute centers on an agreement, our severance & agreement attorneys can evaluate it.
Second, constructive discharge: if your employer deliberately made working conditions so intolerable that a reasonable person would feel compelled to quit — sustained harassment, a humiliating demotion, a drastic pay cut designed to push you out — your resignation is legally treated as a termination under Turner v. Anheuser-Busch, Inc., 7 Cal. 4th 1238 (1994).
How to Prove Wrongful Termination
The elements vary by legal theory, but a wrongful termination claim generally requires proof of an employment relationship, an adverse action (termination or constructive discharge), an illegal motive that was a substantial factor in the decision, and resulting damages. Under Harris v. City of Santa Monica, 56 Cal. 4th 203 (2013), the discriminatory reason need not be the only reason — just a substantial motivating factor.
Evidence that wins these cases includes:
- Documentation of protected activity: emails, HR complaint records, CRD filings, safety reports — anything proving the employer knew of your protected activity before firing you
- Performance records: positive reviews, raises, or commendations that contradict a pretextual “performance” justification
- Comparator evidence: similarly situated employees who did not engage in protected activity and were not fired
- Timing: termination within days or weeks of a protected complaint is often the most powerful evidence available
- Inconsistent explanations: shifting or contradictory reasons are strong circumstantial evidence of pretext
- Witness testimony and internal communications: coworkers who observed discriminatory comments; emails or messages from decision-makers revealing the true motive
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Request Your Free ConsultationHow to File a Wrongful Termination Claim in California
Step 1: File a CRD Complaint (FEHA Claims)
For FEHA-based claims, you must file an administrative complaint with the California Civil Rights Department (CRD) before you can sue. The deadline is three years from the unlawful act under Government Code § 12960. For federal claims, also file with the EEOC within 300 days — complaints are typically cross-filed under the work-sharing agreement.
Step 2: Obtain a Right-to-Sue Notice
Once the CRD issues a Right-to-Sue Notice, you have one year to file a civil lawsuit in California Superior Court. For EEOC notices on federal claims, you have 90 days to file in federal court.
Step 3: File the Civil Lawsuit
Your attorney files a complaint setting out the facts, legal theories, and damages sought. The employer is served and typically has 30 days to respond.
Step 4: Discovery
Both sides exchange documents and take depositions. Your attorney will depose HR personnel and supervisors, request internal emails and HR records, and obtain the employer’s termination decision-making documents.
Step 5: Mediation or Trial
The vast majority of employment cases settle before trial, often through private mediation. If no settlement is reached, the case proceeds to a jury trial — and California juries have historically been sympathetic to employees in wrongful termination cases.
Statute of Limitations for Wrongful Termination in California
| Claim Type | Deadline | Authority |
|---|---|---|
| FEHA discrimination / retaliation | 3 years — file CRD complaint | Gov. Code § 12960 |
| Federal Title VII / ADEA / ADA | 300 days — file EEOC charge | 42 U.S.C. § 2000e-5 |
| Public policy tort (Tameny) | 2 years from termination | CCP § 335.1 |
| Breach of implied contract | 2 years (oral) / 4 years (written) | CCP §§ 335.1, 337 |
| Workers’ comp retaliation | 1 year from termination | Labor Code § 132a(d) |
| CFRA / FMLA retaliation | 3 years (CFRA) / 2 years (FMLA) | Gov. Code § 12960; 29 U.S.C. § 2617 |
What California Employers Cannot Do
California law recognizes dozens of specific employee rights whose exercise cannot lawfully trigger a termination — taking a meal or rest break (Labor Code § 226.7), using sick leave to care for a family member (§ 233), discussing wages with co-workers (§ 232), accessing your own personnel file (§ 1198.5), or reporting a violation to a government agency (§ 1102.5). A termination causally connected to any of these is both wrongful termination and retaliation.
Employers also cannot hide illegal motives behind facially neutral policies. If the employees selected under a “last hired, first fired” or reduction-in-force policy are disproportionately members of a protected class, the policy may constitute disparate-impact discrimination — or mask disparate treatment. And firing an employee to prevent a pension from vesting, stock options from being exercised, or an imminent commission or bonus from being paid can breach the implied covenant and violate ERISA or Labor Code § 221.
Wrongful Termination in Mass Layoffs
The California WARN Act (Labor Code §§ 1400–1408) requires employers with 75 or more employees to give 60 days’ advance written notice before a mass layoff of 50 or more employees, a relocation, or a plant closure. Employees who don’t receive the required notice are entitled to up to 60 days of back pay and benefits — and California’s WARN Act is significantly broader than the federal version (75-employee threshold vs. 100; 50-employee layoff trigger vs. 100).
Reductions in force are also a common vehicle for age discrimination. Red flags include a RIF that disproportionately eliminates workers over 40, replacing laid-off older workers with younger hires in equivalent roles, and selection criteria like “adaptability” or “long-term potential” that effectively screen by age.
What to Do Immediately After a Wrongful Termination
1. Request a Written Explanation
Ask your employer in writing for the reason for your termination. An employer who later gives shifting or inconsistent explanations has handed you powerful pretext evidence.
2. Preserve Your Evidence
Before returning company equipment, make copies (within your legal rights) of performance reviews, commendations, emails documenting your complaints or leave requests, and communications from supervisors or HR related to the adverse treatment. Do not take confidential business information beyond what documents your own employment situation.
3. Apply for Unemployment Benefits
File with the California Employment Development Department immediately. Receiving UI benefits does not preclude a wrongful termination lawsuit — and the EDD record of your employer’s stated reason for the separation can become valuable evidence.
4. Document Everything
Keep a contemporaneous log of meetings, conversations with HR, written warnings, and how your employer treated others in similar situations. Written records made at the time are among the most credible evidence in employment litigation.
5. Consult a California Wrongful Termination Attorney
The earlier you consult, the more options you have — preserving evidence through litigation holds and meeting the administrative deadlines that can otherwise bar your claims forever. Consultations at Bluestone Law are free and confidential.
Offered a Severance Package? Read Before You Sign
Many terminated employees are handed a severance agreement that waives all legal claims in exchange for a payment. If you are 40 or older, federal law gives you 21 days to consider it (45 in a group layoff) plus a 7-day revocation window; PAGA penalties owed to the State cannot be fully waived in a private agreement; and severance is almost always negotiable — especially when you have potential claims. Our severance agreement attorneys review and negotiate these agreements every week, and the claims you would waive are often worth far more than the first offer.
Why Bluestone Law
Founding attorney Rotem Tamir spent years representing employers at leading California defense firms before opening Bluestone Law — which means we know exactly how companies and their insurers evaluate, defend, and settle wrongful termination claims. That perspective is our clients’ advantage: we know what evidence moves employers to settle and what it takes to win at trial. Every case is handled on contingency.