What is wrongful termination in California?
California recognizes one of the broadest sets of exceptions to at-will employment in the country.
1. The At-Will Default — Labor Code § 2922
"An employment, having no specified term, may be terminated at the will of either party on notice to the other." This is the starting point — but the exceptions swallow much of the rule.
2. Public Policy Exception (Tameny Claim)
Under Tameny v. Atlantic Richfield Co., 27 Cal. 3d 167 (1980), an employee may sue in tort if termination violates a fundamental public policy rooted in a constitutional or statutory provision. Examples: refusing to commit perjury, reporting illegal activity, taking jury duty, or filing a workers' comp claim.
3. Implied Contract Exception (Foley)
Foley v. Interactive Data Corp., 47 Cal. 3d 654 (1988), held that long service, promotions, raises, and assurances of continued employment can create an implied-in-fact contract requiring good cause to terminate. Employee handbooks often create implied contracts unless they contain a clear at-will disclaimer.
4. Implied Covenant of Good Faith and Fair Dealing
Recognized as a contract claim (not tort) under Foley, limiting the employer's ability to terminate to deprive the employee of accrued benefits.
5. FEHA — Gov. Code § 12940
California's Fair Employment and Housing Act prohibits termination based on race, religion, color, national origin, ancestry, disability, medical condition, genetic information, marital status, sex, gender, gender identity/expression, age (40+), sexual orientation, or military status. Broader than federal Title VII and applies to employers with 5+ employees.
6. Whistleblower & Retaliation — Labor Code § 1102.5
Prohibits retaliation against employees who report violations of state or federal law. Penalty: up to $10,000 per violation (§ 1102.5(f)).
7. CFRA — Gov. Code § 12945.2
California Family Rights Act prohibits termination for taking up to 12 weeks of family/medical leave (employers with 5+).
8. Statute of Limitations
This is legal information, not legal advice.
- You were fired shortly after reporting illegal conduct, taking leave, or filing a workers' comp claim
- Your employer's handbook contains progressive discipline language but you were fired immediately
- You belong to a protected class and similarly-situated employees outside that class were treated differently
- Cal. Lab. Code § 2922
- Cal. Lab. Code § 1102.5
- Cal. Gov. Code § 12940
- Cal. Gov. Code § 12945.2
- Cal. Gov. Code § 12960
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.