What steps does an employer in California need to take when terminating an employee?
An Employer's Legal Obligations When Terminating an Employee in California
California employers have certain legal obligations and steps to follow when terminating an employee. Here are the key steps:
- Provide written notice: California employers are required to give written notice of termination to an employee, except in cases where the employee is terminated for misconduct or is on a temporary assignment lasting less than 90 days. The notice must include the effective date of termination and any rights the employee may have to unemployment benefits.
- Provide final paycheck: An employer must provide the employee with their final paycheck no later than the next regular payday following the termination, unless the employee voluntarily agrees to receive their final paycheck at a later date.
- Comply with wage and hour laws: The employer must also comply with California wage and hour laws when terminating an employee. This includes paying all wages owed, including accrued vacation time, within the timeframe required by law.
- Provide references: Employers are not legally required to provide references to former employees, but if they do, they must ensure that the information provided is truthful and not misleading.
- Comply with anti-discrimination laws: Employers must not terminate an employee based on protected characteristics such as race, gender, age, religion, national origin, or disability. Doing so could result in a discrimination claim against the employer.
- Provide COBRA notice: If the employer provides health insurance, they must give the employee a written notice of their right to continue coverage under COBRA.
- Collect company property: The employer should collect any company property, such as keys, badges, laptops, or other equipment from the employee before they leave the premises.
Some potential limitations or exceptions to these requirements may exist based on the employment contract, collective bargaining agreement, or company policy. Further action may be necessary depending on the specific circumstances of the termination. For example, if the termination is contested or the employee alleges discrimination or retaliation, it may be advisable for the employer to consult with a licensed attorney.