Wrongful Termination & Unlawful Discharge

California is an at-will employment state, meaning employers can generally terminate employees at any time, for any lawful reason, or for no reason at all.

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However, terminations based on unlawful motives or in violation of public policy are considered wrongful and can give rise to legal claims.

What Is Wrongful Termination?

Wrongful termination occurs when an employee is fired for a reason that violates:

State or federal anti-discrimination laws
Labor code protections
Whistleblower statutes
Public policy
Implied or written employment contracts

Even in the absence of a formal contract, employers cannot terminate employees for asserting their legal rights, reporting illegal activity, or belonging to a protected group.

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Wrongful Termination

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Break Violations

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Harassment

Common Grounds for a Wrongful Termination Claim

Discrimination based on race, gender,
age, disability, religion, sexual orientation,
or other protected characteristics

Retaliation for filing a harassment complaint,
wage claim, or workplace safety report

Termination for taking legally protected
leave (CFRA, FMLA, pregnancy leave)

Firing a whistleblower who reports fraud,
safety violations, or illegal conduct

Breach of an implied contract or violation of a
written severance or employment agreement

Employees may also have a claim if they were forced to resign due to intolerable conditions—a situation known as constructive discharge.

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Legal Protections

Wrongful termination claims in California may arise under a variety of laws, including:

Fair Employment and Housing Act (FEHA)
Family and Medical Leave Act (FMLA) and California Family Rights Act (CFRA)
Labor Code § 1102.5 (whistleblower protection)
Labor Code § 98.6 (retaliation for labor complaints)
Title VII of the Civil Rights Act
Americans with Disabilities Act (ADA)

These laws provide both state and federal protections against unlawful discharge.

Filing a Claim

Depending on the basis for the claim, employees may need to file with a government agency before suing:

Discrimination or retaliation: File with the California Civil Rights Department (CRD) or the EEOC
Wage-related retaliation: File with the California Labor Commissioner
Public policy or breach of contract claims: File directly in civil court

Time limits to file vary. Many administrative complaints must be filed within one year of termination.

Remedies for Wrongful Termination

Employees who prevail in a wrongful termination claim may recover:

Back pay and lost future earnings

Reinstatement or front pay

Compensation for emotional distress

Attorneys’ fees and court costs

Punitive damages in cases of malicious or egregious conduct

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