California Wrongful Termination Demand Letter Guide

📋 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. However, there are significant exceptions. Wrongful termination occurs when an employer fires an employee for an illegal reason, such as discrimination, retaliation, or violation of public policy.

When to Use This Guide

Use this guide if you believe you were fired because:

📢 Whistleblower Retaliation

You reported illegal activity, safety violations, or fraud and were terminated in response

🚫 Discrimination

You were fired based on race, gender, age, disability, religion, or other protected characteristic

👨‍👩‍👧 Family/Medical Leave

You were terminated for taking FMLA or CFRA protected leave

⚖ Public Policy Violation

You were fired for refusing to break the law or exercising a legal right

👍 What You Can Recover in Wrongful Termination Cases

Back pay - Lost wages and benefits from termination to trial or settlement
Front pay - Future lost earnings if reinstatement is not feasible
Emotional distress - Compensation for mental anguish and suffering
Punitive damages - Additional damages to punish egregious employer conduct
Attorney fees - In many statutory claims, the employer pays your legal costs

California's At-Will Employment Exceptions

📚 Implied Contract Exception

▼

Even without a written contract, an implied contract can limit at-will employment. This can arise from employee handbooks, personnel policies, length of employment, promotions, or verbal assurances of job security. Courts look at the totality of circumstances to determine if an implied contract exists.

⚖ Public Policy Exception

▼

Under Tameny v. Atlantic Richfield Co., you cannot be fired for: refusing to violate a statute, performing a statutory obligation (like jury duty), exercising a statutory right or privilege (like filing a workers' comp claim), or reporting a violation of law (whistleblowing).

👥 Covenant of Good Faith Exception

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California recognizes a limited covenant of good faith and fair dealing in employment. This prevents employers from acting in bad faith to deprive employees of contractual benefits, such as firing someone to avoid paying commissions or vested benefits.

🛡 Statutory Protections

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Numerous California and federal statutes prohibit termination for specific reasons, including FEHA (discrimination/harassment), Labor Code 1102.5 (whistleblower), CFRA/FMLA (family leave), and workers' compensation retaliation laws.

⚠ Time is Critical

California wrongful termination claims have varying deadlines. FEHA claims require filing with CRD within 3 years. Whistleblower claims have a 3-year statute of limitations. Some claims must be filed within 1 year. Act quickly to preserve your rights.

⚖ Legal Basis

California provides extensive protections against wrongful termination. These statutes and cases support your claim.

Key California Statutes

📚

California Labor Code Section 1102.5 (Whistleblower Protection)

Prohibits retaliation against employees who disclose information to government or law enforcement, refuse to participate in unlawful activity, or report violations of state or federal law. Provides for reinstatement, back pay, and civil penalties up to $10,000 per violation.

⚖

Fair Employment and Housing Act (FEHA) - Gov. Code 12940

Prohibits employment discrimination based on race, color, religion, sex, gender, gender identity, sexual orientation, marital status, national origin, ancestry, mental/physical disability, medical condition, age (40+), pregnancy, and military/veteran status. Applies to employers with 5+ employees.

📖

California Family Rights Act (CFRA) - Gov. Code 12945.2

Provides up to 12 weeks of unpaid, job-protected leave for family and medical reasons. Employers cannot terminate employees for taking CFRA leave. Applies to employers with 5+ employees within 75 miles.

📖

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 refusing to break the law.

Protected Categories Under FEHA

👥 Race & National Origin

Race, color, ancestry, national origin, and ethnicity are protected

👤 Gender & Sex

Sex, gender, gender identity, gender expression, sexual orientation

🧔 Disability & Medical

Physical disability, mental disability, medical condition, genetic information

👷 Age

Age discrimination for employees 40 years and older

👨‍👩‍👧 Family Status

Pregnancy, childbirth, breastfeeding, marital status, family caregiving

⚽ Religion & Military

Religious creed, military and veteran status

Elements You Must Prove

Employment relationship - You were an employee (not an independent contractor)
Adverse action - You were terminated, demoted, or suffered other adverse employment action
Protected activity or status - You engaged in protected activity or belong to a protected class
Causal connection - Your protected activity/status was a motivating factor in the termination
Damages - You suffered harm as a result of the wrongful termination

💡 The "Mixed-Motive" Standard in California

Under FEHA, you need only prove your protected characteristic was a "substantial motivating factor" in the termination - not the sole reason. Even if the employer had other legitimate reasons, if discrimination played a substantial role, you can prevail.

✅ Evidence Checklist

Gather these documents before sending your demand letter. 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 or complaints
✓ Text messages with supervisors/HR
✓ HR complaints and investigation records
✓ Whistleblower reports or complaints filed

👥 Witness Information

✓ Names of coworkers who witnessed discrimination
✓ Contact info for supportive colleagues
✓ Statements from witnesses willing to testify

📈 Damages Documentation

✓ Pay stubs showing salary, bonuses, benefits
✓ Job search records (applications, rejections)
✓ Medical records for emotional distress claims
✓ Records of lost benefits (401k, health insurance)

🔒 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. Do this immediately after termination - your file may contain evidence of your performance or pretextual reasons given for termination.

💰 Calculate Your Damages

Wrongful termination damages in California can be substantial. Here's what you may be entitled to recover.

Category	Description
Back Pay	Lost wages and benefits from date of termination to resolution, minus mitigation earnings
Front Pay	Future lost earnings if reinstatement is not practical (can extend for years)
Lost Benefits	Value of health insurance, 401(k) contributions, stock options, bonuses
Emotional Distress	Compensation for anxiety, depression, humiliation, and mental anguish
Punitive Damages	Additional damages to punish and deter malicious or reckless conduct
Attorney Fees	In FEHA and many statutory claims, prevailing employees recover legal costs

💰 No Caps on FEHA Damages

Unlike federal Title VII, California's FEHA has no caps on compensatory or punitive damages. Juries can award whatever they believe is fair based on the evidence. Large verdicts in FEHA cases are not uncommon.

📊 Sample Damages Calculation

Example: FEHA Discrimination Case - Mid-Level Manager

Back pay (18 months x $8,500/month) $153,000

Front pay (3 years x $102,000/year) $306,000

Lost benefits (health, 401k, stock) $45,000

Emotional distress damages $150,000

Punitive damages $500,000

Attorney fees (estimated) $200,000

POTENTIAL TOTAL RECOVERY $1,354,000

💡 Duty to Mitigate

You must make reasonable efforts to find new employment. However, you don't have to accept a job that pays significantly less, is in a different field, or requires relocation. Keep records of your job search efforts to show good faith mitigation.

📝 Sample Language

Copy and customize these paragraphs for your demand letter.

Opening Paragraph

I am writing to formally demand compensation for my wrongful termination from [COMPANY NAME] on [TERMINATION DATE]. My termination violated California law, including [FEHA/Labor Code 1102.5/CFRA], and I am entitled to substantial damages as a result.

Whistleblower Retaliation Claim

On [DATE OF REPORT], I reported [DESCRIPTION OF ILLEGAL ACTIVITY] to [HR/SUPERVISOR/GOVERNMENT AGENCY]. This report was protected activity under California Labor Code Section 1102.5. Within [TIMEFRAME] of making this report, I was terminated. The timing demonstrates a clear causal connection between my protected whistleblowing activity and my termination, constituting unlawful retaliation.

FEHA Discrimination Claim

Throughout my employment, I was subjected to [DISCRIMINATORY TREATMENT] because of my [PROTECTED CHARACTERISTIC: race/gender/age/disability/etc.]. Despite my strong performance record and [YEARS] of service with the company, I was terminated while similarly-situated employees outside my protected class were retained. This disparate treatment violates the California Fair Employment and Housing Act (Government Code Section 12940).

CFRA/FMLA Retaliation Claim

On [LEAVE START DATE], I exercised my right to take [CFRA/FMLA] leave for [QUALIFYING REASON]. Upon returning from or during my protected leave, I was terminated on [TERMINATION DATE]. This termination was in direct retaliation for exercising my statutory right to protected leave under the California Family Rights Act (Government Code Section 12945.2), and constitutes unlawful interference with and retaliation for protected leave.

Damages Demand

I hereby demand compensation for all damages arising from my wrongful termination, including but not limited to: back pay in the amount of $[AMOUNT]; front pay; the value of all lost benefits including health insurance, retirement contributions, and stock options; emotional distress damages; and punitive damages. Should this matter proceed to litigation, I will also seek recovery of attorney fees and costs as permitted by [FEHA/Labor Code 1102.5]. I demand a response to this letter within [30 DAYS].

🚀 Next Steps

What to do after sending your demand letter and understanding the CRD/DFEH complaint process.

DFEH/CRD Complaint Process

📌 Filing with the Civil Rights Department (CRD)

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 to proceed directly to court, or have CRD investigate your claim.

Litigation Timeline

Months 1-2

Send demand letter, attempt settlement negotiations, file CRD complaint if needed

Months 2-4

Receive Right to Sue notice, file lawsuit in Superior Court within 1 year of notice

Months 4-12

Discovery phase: depositions, document production, interrogatories

Months 12-18

Mediation, summary judgment motions, trial preparation

If They Don't Respond or Settle

Consult an Employment Attorney
Many employment attorneys work on contingency (no fee unless you win). In FEHA cases, prevailing plaintiffs recover attorney fees, making it financially viable for attorneys to take strong cases.
File a CRD Complaint
File your complaint online at calcivilrights.ca.gov. Request a Right to Sue notice if you want to proceed directly to court, or request investigation if you prefer the agency to investigate first.
File a Lawsuit
Wrongful termination lawsuits are filed in California Superior Court. You must file within 1 year of receiving your Right to Sue notice from CRD. For non-FEHA claims like whistleblower retaliation, you can file directly in court.

Need Legal Help?

Wrongful termination cases require strategic planning and experienced advocacy. Get a 30-minute strategy call with an employment attorney to evaluate your case.

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California Resources

CA Civil Rights Department (CRD): calcivilrights.ca.gov - File complaints, check deadlines
CRD Hotline: 1-800-884-1684 (voice), 1-800-700-2320 (TTY)
California Labor Commissioner: dir.ca.gov/dlse - Wage and retaliation claims
EEOC (Federal): eeoc.gov - For federal discrimination claims
State Bar Lawyer Referral: calbar.ca.gov