📋 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.
⚖ Legal Basis
California provides multiple legal theories for wrongful termination claims. I analyze which theories apply to maximize recovery for employees or assess exposure for employers.
Key Legal Authorities
Tameny v. Atlantic Richfield Co. (1980)
Landmark California Supreme Court case establishing that wrongful termination in violation of public policy is actionable as a tort. Allows recovery of compensatory and punitive damages when an employee is fired for: (1) refusing to violate a statute, (2) performing a statutory obligation, (3) exercising a statutory right, or (4) reporting a violation of law.
Foley v. Interactive Data Corp. (1988)
California Supreme Court recognized implied contract exception to at-will employment. Courts consider totality of circumstances: personnel policies, practices, longevity, promotions, commendations, assurances of continued employment, and industry practices. Contract claims limited to contract damages.
FEHA - Government Code 12940
Fair Employment and Housing Act prohibits termination based on protected characteristics: race, color, religion, sex, gender, sexual orientation, marital status, national origin, ancestry, disability, medical condition, age (40+), pregnancy, and military status. No cap on damages. Attorney fees recoverable.
Covenant of Good Faith and Fair Dealing
California recognizes that every contract includes an implied covenant of good faith. In employment, this prevents termination solely to deprive the employee of earned benefits, such as commissions about to vest, pension benefits, or bonuses. Limited to contract damages.
Public Policy Sources (Tameny Claims)
🚫 Refusing to Violate Law
▼Termination for refusing to commit perjury, refusing to engage in price-fixing, refusing to falsify records, refusing to violate safety regulations, or refusing to participate in any illegal activity. The employee's reasonable belief that the conduct is illegal is sufficient.
⚖ Performing Statutory Duty
▼Termination for performing jury duty, cooperating with government investigations, reporting child abuse as a mandated reporter, or any other action required by law. These statutory duties must be performed regardless of employer preference.
🛠 Exercising Legal Rights
▼Termination for filing workers' compensation claims, taking family leave under CFRA/FMLA, voting, engaging in lawful off-duty conduct, or exercising any other right granted by statute. Employers cannot condition employment on waiving statutory rights.
📢 Reporting Violations
▼Termination for reporting employer violations to government agencies, including OSHA complaints, wage claims, environmental violations, or fraud reports. Overlaps with whistleblower statutes (LC 1102.5) but provides tort remedies including punitive damages.
💡 Tort vs. Contract Damages
Tameny (public policy) claims sound in tort and allow punitive damages and emotional distress recovery. Implied contract and good faith claims sound in contract and are limited to contract damages (lost wages, benefits). I carefully evaluate which theories to pursue based on facts and potential recovery.
📝 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
- Employment Relationship - Plaintiff was employed by defendant
- Termination - Defendant terminated plaintiff's employment
- Public Policy Violation - Termination violated fundamental public policy (statutory or constitutional)
- Causation - The public policy violation was a substantial motivating factor in termination
- Damages - Plaintiff suffered harm as a result
Implied Contract Elements
- Employment Relationship - Plaintiff was employed by defendant
- Implied Promise - Employer made implied promise limiting termination rights (handbook, practices, assurances)
- Breach - Employer breached the implied promise by terminating without good cause
- Damages - Plaintiff suffered damages from the breach
FEHA Discrimination Elements
- Protected Class - Plaintiff is a member of protected class
- Qualified - Plaintiff was performing job competently
- Adverse Action - Defendant terminated plaintiff
- 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
Attorney Services
💰 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.
🖩 Wrongful Termination Damages Calculator
Use this interactive calculator to estimate potential damages in your California wrongful termination case. Enter your information below to get an estimate of back pay, front pay, lost benefits, and other recoverable damages.
📈 Estimated Damages Breakdown
Click any row for explanation
💡 Factors Affecting Your Recovery
- Mitigation: You must make reasonable efforts to find new employment
- Evidence: Strong documentation significantly increases settlement value
- Employer Size: Larger employers may have higher punitive exposure
- Egregious Conduct: Malicious actions increase emotional distress and punitive awards
✅ 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.
👥 When to Hire a Wrongful Termination Attorney
Wrongful termination cases are among the most complex employment claims. Understanding when professional help is essential can make the difference between a successful recovery and a lost case.
Handle It Yourself When:
✅ Simple Final Paycheck Issue
If your only claim is unpaid final wages (not wrongful termination itself), you may be able to use DLSE
✅ Negotiating Severance
If the employer is offering severance and you just need help reviewing terms (though an attorney review is still valuable)
Hire an Attorney When:
⚠ FEHA Discrimination Claim
FEHA discrimination requires proving protected characteristic, adverse action, and causation - complex legal elements
⚠ Retaliation for Protected Activity
Whistleblower and retaliation claims require establishing the protected activity and proving causal connection
⚠ Public Policy Violation
Tameny claims for wrongful termination in violation of public policy are fact-intensive and legally complex
⚠ Significant Damages
Wrongful termination damages can include years of lost wages, emotional distress, and punitive damages
Why You Almost Always Need an Attorney
- Complex Legal Elements: Wrongful termination requires proving specific legal elements that vary by claim type
- Fee-Shifting: FEHA allows prevailing plaintiffs to recover attorney fees - making representation economically viable
- Administrative Exhaustion: FEHA claims require filing with DFEH/CRD first - attorneys ensure proper procedures
- Employer Has Counsel: Employers always hire attorneys for wrongful termination claims - you should too
- Settlement Leverage: Represented employees receive significantly higher settlements on average
- Statute of Limitations: FEHA has strict filing deadlines - an attorney ensures you don't miss them
Not Sure If You Have a Case?
Take our free 2-minute assessment to evaluate your wrongful termination claim.
Take Free Assessment⚠ Time Is Critical
FEHA discrimination claims must be filed with the Civil Rights Department within 3 years of the termination. Whistleblower claims have varying deadlines. Evidence and witness memories degrade quickly. Consult an attorney immediately after termination.
🚀 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 $575 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.
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