What are the legal requirements for terminating an employee in California?
Legal requirements for terminating an employee in California:
In California, employers may terminate employees for any reason as long as it does not violate public policy, such as discrimination against a protected category under the Fair Employment and Housing Act, or retaliation for exercising a legal right, such as filing a complaint against an employer with a government agency or making a complaint to human resources.
The employer must follow certain steps to ensure the termination is legal:
- Employment contract: If an employment contract exists, the employer must follow the terms outlined in the contract when terminating the employee. Breaching the terms of the contract can result in legal action by the employee.
- Final paycheck: The employer must provide the final paycheck no later than the next regular payday following termination. If the employee's wages are disputed, the employer must pay any undisputed wages within the time required by law and can hold disputed wages until the dispute is resolved.
- Documentation: The employer must document the reasons for the termination and keep the documentation on file for at least four years.
- Notice: If the employer plans to lay off 50 or more employees at once, the employer must provide notice to the affected employees and the Employment Development Department at least 60 days before the planned layoff.
- Unemployment insurance: The employer must provide the employee with information about how to apply for unemployment insurance benefits.
Exceptions and limitations:
- Public sector employees: Public sector employees have additional protections and must be terminated for cause after due process.
- Discrimination: Employers cannot terminate employees based on protected categories under the Fair Employment and Housing Act.
- Whistleblower retaliation: Employers cannot terminate employees for reporting illegal conduct or violations of public policy.
Suggestion for further action:
If an employee feels they were terminated illegally, they can file a complaint with the Department of Fair Employment and Housing or file a lawsuit against the employer. It is recommended that employees seek the advice of an attorney to determine if they have a case.