📋 What is Wrongful Termination in California?

California is an "at-will" employment state, meaning employers can generally terminate employees for any reason or no reason at all. However, there are significant exceptions that make certain terminations unlawful. I help both employees who have been wrongfully terminated and employers who need to respond to termination claims.

Exceptions to At-Will Employment

⚖ Public Policy (Tameny)

Termination for refusing to violate law, performing statutory duty, exercising legal rights, or reporting legal violations

📝 Implied Contract

Handbook policies, verbal assurances, longevity, and practices creating reasonable expectation of job security

👥 FEHA Violations

Termination based on race, gender, age, disability, religion, or other protected characteristics

📝 Good Faith Exception

Bad faith termination to deprive employee of earned benefits or commissions

Two-Sided Coverage

✅ For Employees (Senders)

  • Identify which wrongful termination theory applies
  • Document the circumstances surrounding termination
  • Gather evidence of pretext or discriminatory motive
  • Calculate comprehensive damages including punitive
  • Draft a demand that maximizes settlement leverage

📩 For Employers (Recipients)

  • Evaluate the strength of each termination theory claimed
  • Document legitimate, non-discriminatory reasons
  • Assess potential liability under multiple theories
  • Identify defenses and weaknesses in the claim
  • Develop strategic response and settlement position

⚠ Statute of Limitations

California wrongful termination claims have varying deadlines. FEHA claims require filing with CRD within 3 years. Common law Tameny claims have a 2-year statute. Breach of implied contract has a 2-year statute (oral) or 4-year (written). Consult an attorney promptly.

📝 Elements to Prove

Each wrongful termination theory has different elements. I analyze which theories apply and what evidence is needed to establish liability or mount a defense.

Tameny (Public Policy) Elements

  1. Employment Relationship - Plaintiff was employed by defendant
  2. Termination - Defendant terminated plaintiff's employment
  3. Public Policy Violation - Termination violated fundamental public policy (statutory or constitutional)
  4. Causation - The public policy violation was a substantial motivating factor in termination
  5. Damages - Plaintiff suffered harm as a result

Implied Contract Elements

  1. Employment Relationship - Plaintiff was employed by defendant
  2. Implied Promise - Employer made implied promise limiting termination rights (handbook, practices, assurances)
  3. Breach - Employer breached the implied promise by terminating without good cause
  4. Damages - Plaintiff suffered damages from the breach

FEHA Discrimination Elements

  1. Protected Class - Plaintiff is a member of protected class
  2. Qualified - Plaintiff was performing job competently
  3. Adverse Action - Defendant terminated plaintiff
  4. Circumstances - Circumstances suggest discriminatory motive (replaced by non-protected person, treated differently, etc.)

💡 "Substantial Motivating Factor" Standard

Under California law (Harris v. City of Santa Monica), the employee need only prove that discrimination or protected activity was a "substantial motivating factor" in the termination - not the sole or even primary reason. This standard is more favorable than federal law's "but-for" causation requirement.

Employer Defenses

📄 Legitimate Business Reason

Poor performance, policy violations, misconduct, restructuring, or economic necessity

📈 Documentation

Progressive discipline, performance reviews, warnings, and contemporaneous records

👥 Same Actor Inference

Same person who hired also fired - inference against discriminatory motive

🕑 After-Acquired Evidence

Evidence discovered after termination that would have justified firing (limits damages)

💰 Damages and Penalties

California wrongful termination claims can result in substantial damages. I calculate maximum recovery for employees and assess exposure for employers.

Damage Category Tameny (Tort) FEHA Contract
Back Pay Yes Yes Yes
Front Pay Yes Yes Yes
Lost Benefits Yes Yes Yes
Emotional Distress Yes Yes No
Punitive Damages Yes Yes No
Attorney Fees No Yes No
Damage Caps None None Contract terms

📊 Sample Damages Calculation

Example: FEHA Discrimination Case - Senior Manager

Back pay (18 months x $9,000/month) $162,000
Front pay (3 years x $108,000/year) $324,000
Lost benefits (health, 401k, stock) $55,000
Emotional distress damages $175,000
Punitive damages $500,000
Attorney fees (estimated) $225,000
POTENTIAL TOTAL RECOVERY $1,441,000

Attorney Services

$450
Flat Fee Demand Letter
$240/hr
Hourly Consultation

💰 No Caps on California Damages

Unlike federal Title VII (which caps damages based on employer size), California's FEHA has no caps on compensatory or punitive damages. Juries can award whatever they believe is fair. Seven-figure verdicts in FEHA cases are not uncommon.

✅ Evidence Checklist

Gather these documents to strengthen your claim (employees) or build your defense (employers). Click to check off items as you collect them.

📄 Employment Documents

  • ✓ Offer letter and employment agreement
  • ✓ Employee handbook and company policies
  • ✓ Performance reviews and evaluations
  • ✓ Termination letter or documentation

📩 Communications

  • ✓ Emails related to termination
  • ✓ Text messages with supervisors/HR
  • ✓ HR complaints and investigation records
  • ✓ Written warnings or disciplinary records

👥 Witness Information

  • ✓ Names of coworkers who witnessed events
  • ✓ Contact info for supportive colleagues
  • ✓ Statements from witnesses
  • ✓ Comparator employees (similar situations)

📈 Damages Documentation

  • ✓ Pay stubs showing salary, bonuses, benefits
  • ✓ Job search records (applications, rejections)
  • ✓ Medical records for emotional distress
  • ✓ Lost benefits documentation

🔒 Request Your Personnel File

Under Labor Code Section 1198.5, you have the right to inspect and copy your personnel file within 30 days of a written request. Request this immediately - your file may contain evidence of your performance or reveal pretextual reasons for termination.

📄 Sample Language

I use these templates when drafting wrongful termination demand letters. Copy and customize for your situation.

Opening Paragraph
This letter constitutes formal notice of my client's claims for wrongful termination against [EMPLOYER NAME]. On [TERMINATION DATE], [EMPLOYER NAME] terminated my client's employment in violation of California law, including [FEHA/public policy/implied contract]. The circumstances of this termination expose [EMPLOYER NAME] to substantial liability, including compensatory damages, punitive damages, and attorney fees.
Tameny Public Policy Claim
My client's termination violated fundamental public policy as articulated in Tameny v. Atlantic Richfield Co. (1980). Specifically, my client was terminated for [refusing to violate law/performing statutory duty/exercising legal rights/reporting violations]. On [DATE], my client [DESCRIBE PROTECTED CONDUCT]. This conduct is protected by [SPECIFIC STATUTE OR CONSTITUTIONAL PROVISION]. Within [TIMEFRAME], my client was terminated in retaliation for this protected activity. This wrongful termination in violation of public policy entitles my client to compensatory damages, punitive damages, and all other available remedies.
FEHA Discrimination Claim
My client's termination violated the California Fair Employment and Housing Act (Government Code Section 12940). My client is a member of a protected class based on [PROTECTED CHARACTERISTIC]. Despite [YEARS] of service and consistently strong performance reviews, my client was terminated on [DATE]. The stated reason for termination - [STATED REASON] - is pretextual, as evidenced by [EVIDENCE: timing, disparate treatment, comments, replacement by non-protected employee]. My client's [PROTECTED CHARACTERISTIC] was a substantial motivating factor in the termination decision.
Implied Contract Claim
[EMPLOYER NAME]'s conduct created an implied contract limiting its right to terminate my client. Under Foley v. Interactive Data Corp. (1988), courts consider the totality of circumstances. Here, [EMPLOYER NAME]: [maintained handbook promising termination only for cause/made verbal assurances of continued employment/followed progressive discipline policy for other employees/employed my client for X years with regular promotions and commendations]. My client reasonably relied on these representations and was terminated without good cause in breach of the implied contract.
Damages Demand
Based on the foregoing, my client demands compensation for all damages arising from this wrongful termination, including: (1) back pay of $[AMOUNT]; (2) front pay reflecting my client's anticipated earnings through [DATE/RETIREMENT]; (3) the value of all lost benefits; (4) emotional distress damages for the anxiety, humiliation, and mental anguish caused by this termination; and (5) punitive damages to punish [EMPLOYER NAME]'s malicious and oppressive conduct. My client also reserves the right to seek attorney fees under FEHA. Total exposure exceeds $[AMOUNT]. To resolve this matter, my client will accept $[SETTLEMENT AMOUNT] within [30 DAYS].

🚀 Next Steps

Whether you're an employee sending a wrongful termination claim or an employer responding to one, I can help you navigate the process.

For Employees (Senders)

Step 1: Gather Evidence

Request personnel file, collect communications, identify witnesses and comparators

Step 2: Send Demand Letter

I draft comprehensive demand letters for $450 flat fee that maximize settlement value

Step 3: File CRD Complaint

For FEHA claims, file with California Civil Rights Department within 3 years

Step 4: Litigate if Necessary

File lawsuit in Superior Court if settlement not reached

For Employers (Recipients)

Step 1: Preserve Evidence

Issue litigation hold immediately to preserve all relevant records

Step 2: Investigate Claim

Gather documentation of legitimate termination reasons

Step 3: Assess Exposure

Evaluate claim theories and calculate potential liability

Step 4: Respond Strategically

I help employers craft responses that protect interests and explore resolution

📌 CRD/DFEH Filing Process

For FEHA claims, you must file a complaint with California's Civil Rights Department (formerly DFEH) within 3 years of the discriminatory act. You can file online at calcivilrights.ca.gov. You can request an immediate "Right to Sue" notice or have CRD investigate. Tameny claims can be filed directly in court.

Need Legal Help?

I help both employees and employers with California wrongful termination claims. Schedule a consultation to discuss your situation.

Schedule Consultation Email: owner@terms.law

California Resources

  • CA Civil Rights Department (CRD): calcivilrights.ca.gov - File FEHA complaints
  • CRD Hotline: 1-800-884-1684 (voice), 1-800-700-2320 (TTY)
  • California Labor Commissioner: dir.ca.gov/dlse - Wage and retaliation claims
  • State Bar Lawyer Referral: calbar.ca.gov - Find employment attorneys