Wrongful Termination

When an At-Will Firing Becomes an Illegal One

California is an at-will employment state, which means either the employee or the employer can usually end the working relationship at any time. However, an employer still cannot fire you for a reason the law forbids. When it does, the termination is wrongful, and you may have grounds to hold the employer accountable.

For example, if you were fired and a factor in the employer’s firing decision involved your age, sex, sexual orientation, religion, race, national origin, reporting wrongdoing, or taking protected leave, then your rights may have been violated.

At-Will Employment in California

Under California Labor Code Section 2922, employment without a specified term is presumed to be at-will. An employer can generally terminate an employee with or without cause and with or without notice, and an employee is equally free to leave. The rule has limits. An employer cannot use at-will status to fire someone for an unlawful reason, to break a clear promise of job security, or to punish an employee for exercising a legal right. Those limits are where most wrongful termination claims begin.

When a Termination Is Wrongful

A firing is wrongful when the real reason behind the employer’s decision is illegal. Common examples include termination that is based on, or in retaliation for, the following:

• Discrimination because of race, sex, age, disability, religion, national origin, pregnancy, or sexual orientation
• Reporting illegal activity, fraud, or safety violations
• Requesting or taking legally protected medical or family leave
• Complaining about unpaid wages, overtime, or missed meal or rest breaks
• Filing a workers’ compensation claim or reporting a workplace injury
• Refusing to commit an illegal act at the employer’s direction

If any of these played a role in your firing, the termination may be unlawful even in an at-will job.

Public Policy and Whistleblower Claims

California recognizes a claim for wrongful termination in violation of public policy, often called a Tameny claim. It allows an employee to sue when a firing violates a fundamental public policy set out in the state Constitution, a statute, or a regulation, such as being fired for refusing to break the law or for reporting illegal conduct.

California’s whistleblower law, Labor Code Section 1102.5, separately protects employees who report conduct they reasonably believe is illegal, whether the report is made internally or to a government agency. You do not have to be proven right. You are protected as long as your belief was reasonable when you reported it.

Can I Sue for Wrongful Termination?

Yes, if your firing was based on an illegal reason, even in an at-will job. Courts look at the employer’s real reason for the termination. To succeed, you generally need to show that an illegal motive, such as discrimination or retaliation, was a substantial factor in the decision to end your employment.

You do not always have to be formally fired. If an employer makes working conditions so intolerable that a reasonable person would feel compelled to resign, the law may treat that resignation as a termination, known as constructive discharge.

If your claim succeeds, you may recover lost wages and benefits, compensation for emotional distress, and in some cases additional or punitive damages plus attorney fees and costs. Deadlines depend on the type of claim, and some claims require you to file with a state agency first, so it is important to act quickly. Each situation is different, and speaking with an attorney early is the best way to protect your rights.

Frequently Asked Questions

Can I sue for wrongful termination if I am an at-will employee?

Yes. At-will means your employer can usually fire you without giving a reason. It does not allow your employer to fire you for an illegal reason, such as discrimination or retaliation. In those cases you may have a wrongful termination claim.

What makes a termination wrongful in California?

A termination is wrongful when the real reason behind it is illegal, such as discrimination based on a protected characteristic, retaliation for reporting wrongdoing or unpaid wages, firing you for taking protected leave, or punishing you for refusing to break the law.

Can I be fired for reporting my employer?

No. California’s whistleblower law protects you from retaliation for reporting conduct you reasonably believe is illegal. You are protected even if you turn out to be mistaken, as long as your belief was reasonable when you reported it.

What is wrongful termination in violation of public policy?

Often called a Tameny claim, it lets you sue when you are fired for a reason that violates a fundamental public policy, such as refusing to commit an illegal act, reporting illegal conduct, or exercising a legal right.

What can I recover if I win a wrongful termination case?

Depending on your situation, you may recover lost wages and benefits, compensation for emotional distress, and in some cases additional or punitive damages plus attorney fees and costs. Deadlines vary by claim type and some claims must first be filed with a state agency, so it is important to act promptly.

Schedule Your Free Consultation

At Righetti Law in San Francisco, our attorneys represent employees in California state and federal courts and have decades of experience handling wage-and-hour and class action matters. We have recovered millions for our clients in court and in settlement.

Your consultation will be confidential, and we will not contact your employer.

Call our firm at 415-983-0900 for a complimentary, confidential consultation. You may also complete our online contact form.