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Can I sue for wrongful termination in California?

Federal & State Law Editorial TeamLast reviewed: 2026-05-18

1. At-Will Default

California codifies at-will employment in Cal. Lab. Code § 2922, but it is heavily modified by common-law and statutory exceptions.

2. Public Policy Exception

California is the leading public-policy state. Tameny v. Atlantic Richfield Co., 27 Cal.3d 167 (1980), recognized tort damages for termination violating a fundamental public policy (refusing to commit antitrust violations). Stevenson v. Superior Court, 16 Cal.4th 880 (1997), set the four-part test: policy must be (1) fundamental, (2) public (not private), (3) well-established, and (4) tethered to a constitutional/statutory provision.

3. Implied Contract

Foley v. Interactive Data Corp., 47 Cal.3d 654 (1988), recognized implied-in-fact contracts from handbooks, longevity, oral assurances, and industry practice — limiting at-will discharge.

4. Implied Covenant of Good Faith

Recognized but Foley limits remedies to contract damages (no tort/punitive recovery) for ordinary employment.

5. Statutory Discrimination Claims

FEHA (Gov. Code § 12940 et seq.) prohibits discrimination based on race, sex, age (40+), disability, gender identity, sexual orientation, and more. Enforced by the Civil Rights Department (CRD, formerly DFEH). File CRD complaint within 3 years (Gov. Code § 12960). Title VII/ADEA/ADA require EEOC charge within 300 days.

6. Retaliation Statutes

Lab. Code § 1102.5 (whistleblower — broad protection, treble damages possible); § 132a (workers' comp retaliation); § 6310 (Cal/OSHA); § 98.6 (wage complaints).

7. WARN Act

Federal WARN (29 U.S.C. § 2101) + Cal-WARN (Lab. Code § 1400 et seq.) — 60 days' notice for plants of 75+ employees; broader than federal.

8. Damages

Back pay, front pay, emotional distress, punitive damages (Tameny tort), attorney's fees under FEHA.

9. Statute of Limitations

CRD: 3 years; EEOC: 300 days; written contract: 4 years (CCP § 337); Tameny tort: 2 years.

This is legal information, not legal advice.

When to Talk to a Lawyer
  • You were fired after reporting illegal activity, safety violations, or refusing to participate in fraud
  • Your employer made specific promises in a handbook or offer letter that were violated
  • You were terminated within weeks of disclosing a disability, pregnancy, or protected leave request
Related Statutes & Laws
  • Cal. Lab. Code § 2922
  • Cal. Lab. Code § 1102.5
  • Cal. Gov. Code § 12940 (FEHA)
  • Cal. Lab. Code § 1400 (Cal-WARN)
  • Tameny v. Atlantic Richfield, 27 Cal.3d 167 (1980)

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.