What steps do I need to take to terminate an employee in California?
To terminate an employee in California, employers should follow these steps in order to comply with California employment law:
- Review the employment contract, if one exists, and determine whether the employee is an at-will employee or is under contract for a specific term.
- If the employee is not under contract, notify the employee of your intent to terminate their employment. The notification should be in writing, and should outline the reason why the employee is being terminated. California is an at-will employment state, so employers are not required to give a reason for termination.
- Determine the employee's final payment date. California law requires that employers pay terminated employees their final paycheck on or before the employee's last day of work. If the employee is terminated without notice or is laid off, the employer must pay the employee all wages due immediately.
- In addition to the final paycheck, employers must also compensate the employee for any accrued but unused vacation time, personal days, or sick leave. California law requires that this payment be made at the same time as the final paycheck.
- Provide the employee with information about their rights to continue health insurance coverage under COBRA. Employers with 20 or more employees are generally required to offer COBRA benefits to terminated employees.
- Collect any company property from the employee, such as keys, ID badges, or computers.
It is important to ensure compliance with applicable state, federal, and local regulations with regards to employment termination. Employers should review the company's policies and procedures, document the termination process, and obtain legal advice if necessary to help minimize the risk of legal action by the terminated employee.