Yes, At-Will Employees Can Sue You for Wrongful Termination in California

Under California’s at-will employment laws, you can fire employees for any reason, except when you can’t. The most obvious example is when you have signed an employment contract that guarantees the employee’s job until a certain date; if you fire an employee in that situation, they can sue you for breach of contract, as well as wrongful termination. At-will employees can also sue for wrongful termination under certain circumstances, even if the employee handbook clearly states that the employer has the right to terminate the employment relationship at any time and for any reason. If your decision to fire the employee violates public policy or anti-discrimination laws, an at-will employee can still sue you for wrongful termination. If you need to let some of your employees go and want to avoid lawsuits, or if a former employee is claiming that you terminated their employment unjustly, contact a San Diego business law attorney.

What Do At-Will Employment Laws Give You the Right to Do?

At-will employment laws give you the right to fire an employee for poor job performance or misconduct, but you also have the right to terminate an employee even if the employee has done everything right. Many decisions to fire employees stem from financial considerations. The costs of employing even one person are substantial; not only do you pay their wages or salary, but also taxes, and if you provide health insurance benefits, your costs are even higher. For example, the employer simply may not be able to afford so many workers on the payroll. With all the uncertainty as the COVID-19 pandemic drags on, it is hard for many employers to keep their entire pre-pandemic staff on the payroll.

Is it a Coincidence That You Fired an Employee Soon After They Engaged in a Protected Activity?

An employee has the right to sue their employer for wrongful termination if the employer fires the employee as retaliation (punishment) for engaging in a protected activity. The following are examples of protected activities:

  • Complaining about racial or gender discrimination in the workplace, or threatening to complain about discrimination
  • Requesting reasonable accommodations for a disability or a religious obligation (such as breaks to perform prayers or permission to wear religiously prescribed clothing at work)
  • Taking time off from work for jury duty
  • Requesting an FMLA leave for medical or family caregiving reasons
  • Filing a workers’ compensation claim about a work injury
  • Refusing to follow the employer’s instructions to do something illegal
  • Reporting illegal activity or violations of regulations on the employer’s part

Wrongful termination disputes sometimes arise when an employee engages in a protected action and subsequently loses their job in a “corporate restructuring.” Your lawyer can help you assess your rights to terminate an employment relationship.

Contact Foldenauer Law Group About Wrongful Termination Claims

A business dispute lawyer can help you defend your business against claims by former employees who allege that you wrongfully terminated their employment. Contact Foldenauer Law Group, APLC in San Diego, California to discuss your case.

Independent Contractors Can Sue for Employment Discrimination Too

Earlier this year, the California Department of Fair Employment and Housing (DFEH) filed an anti-discrimination lawsuit against the video game company Activision Blizzard. The lawsuit was brought on behalf of women who allegedly experienced harassment and a hostile work environment and who did not receive fair pay while working for the company. This month, the DFEH expanded the lawsuit to include not only former employees but also women who had worked for Activision Blizzard on a temporary basis, as independent contractors. One of the changes DFEH made in the amended complaint was to refer to the plaintiffs as “workers” instead of “employees,” since the company did not classify all of them as employees. This lawsuit is a manifestation of two widespread problems. The first is the “frat boy” culture of entitlement and sexual harassment, which is widely documented in California’s video game industry. The second is an even more pervasive problem, that of the gig economy, where employers classify as many workers as possible as independent contractors in order to avoid giving them the basic rights due to employees. If a former employee or former independent contractor is suing your company or threatening to sue your company for discrimination, contact a San Diego business law attorney.

Employment Protections for Non-Employee Workers

Many women who worked for Activision Blizzard, whether full time or on a temporary basis, felt that the company treated them unfairly. They characterized their work environment as a “video game bro” culture, where sexual harassment and disrespectful treatment of women were frequent occurrences. The company gave the women who worked there an unsustainably heavy workload, while paying them less than it paid men who did less work. At first, the women tried to resolve the issue by bringing their complaints to administrators within the company, but the administrators did not seem to take the matter seriously. Therefore, they brought their complaints to the DFEH, which filed the referenced lawsuit.

Protection against employment discrimination is not just for employees who receive a W-2 at the end of each tax year. If this were not the case, employers could get around the law by only hiring independent contractors and issuing 1099s to everyone. This is why workers, whether they are employees or independent contractors, have the right to file a discrimination complaint if their employer treats them unfairly based on their race, gender, religion, nationality, age, or disability  (these are known as “protected characteristics”). Paying a worker less because of a protected characteristic is a form of discrimination, as is workplace harassment and retaliating against workers who complain about discrimination.

Contact Foldenauer Law Group About Employment Discrimination Complaints

Employment discrimination lawsuits take a long time and have many steps. The sooner you hire a lawyer, the better. A business dispute lawyer can help you resolve conflicts with employees who allege workplace discrimination, before or after the employees notify the DFEH of their complaints. Contact Foldenauer Law Group, APLC in San Diego, California to discuss your case.