Understanding California's At-Will Employment Law

At-will employment is the most common type of employment in California. This means that an employee can be terminated at any time, with or without notice, and for any reason, with or without cause. At-will employment has been the law of the land in California since 1872.

However, while at-will employment is the general rule, there are several exceptions that employers need to be aware of. These exceptions include the implied covenant of good faith, public policy, and discrimination. If one of these exceptions applies to your business, you may not be able to terminate an employee.

The Implied Covenant of Good Faith

The implied covenant of good faith is a legal principle that requires employers to act in good faith and deal fairly with their employees. This means that employers cannot terminate an employee for a reason that is not related to the employee’s job performance or the employer’s legitimate business interests.

For example, if an employer terminates an employee because they are of a certain race, religion, gender, or age, then the termination would be considered a breach of the implied covenant of good faith.

Public Policy Exceptions

Public policy exceptions prohibit employers from terminating employees for certain reasons. These reasons include terminating an employee for filing a workers’ compensation claim, refusing to commit an illegal act, or taking time off to serve in the military.

For example, if an employee is injured on the job and files a workers’ compensation claim, the employer cannot terminate the employee for doing so. This is because it would be in violation of public policy.

Discrimination

California law prohibits employers from discriminating against employees on the basis of certain protected characteristics, such as race, gender, national origin, religion, age, and disability. This means that employers cannot terminate an employee because they are of a certain race, gender, or religion.

For example, if an employer terminates an employee because they are pregnant, this would constitute discrimination and would be a violation of California law.

Conclusion

At-will employment is the general rule in California, but there are several exceptions that employers need to be aware of. These exceptions include the implied covenant of good faith, public policy, and discrimination. If one of these exceptions applies to your business, you may not be able to terminate an employee.