Are you in Los Angeles, California, and have you been terminated without notice? Or are you an employer considering terminating an employee without notice? Whether you are an employee or an employer, if you are dealing with a termination without notice, it is a good idea to get the help of an employment lawyer.
Can an Employer in California Terminate an Employee Without Notice?
The short answer is, yes, a California employer can let an employee go with no notice if there is no specific contract in place with guidelines for employee termination. The foundation for this is California’s employment law, which presumes that most employment relationships are “at will.”
What Is “At-Will” Employment?
At-will employment means that either the employer or the employee can end the employment at any time they wish. They are not required to give any reason for ending the working relationship. Either party may do so without giving notice if there’s no contract giving specific guidelines about how employment should be ended.
Does an Employer Have Obligations to an Employee Who Is Terminated Without Notice?
Final Paycheck
California law requires employers to issue the final paycheck to a terminated employee as soon as their employment has ended. The paycheck must include all wages earned up to that point and any other compensation that is due. For example, if they have unused vacation time or unused paid time off (PTO), pay for those hours must also be included in the final paycheck, at the regular rate of pay.
Severance Pay
Severance pay is not required by California law. However, if an employment contract or company policy states or implies that severance pay will be given, then of course the employer must give it. Severance may also have been the custom of the company in other cases of termination; if there is a history of the company offering employees severance pay when there is termination without notice, the employer may be obligated to provide severance. It is usually paid out with the final paycheck.
Notice Requirements in Certain Situations
There are some situations where California law requires notice of a layoff or job termination, even for at-will employees. The Worker Adjustment and Retraining Notification (WARN) Act, for example, requires California employers with a company of 75 or more persons to give employees a notice of 60 days if there are going to be mass layoffs, plant closures, or relocations.
Health Insurance
If the employer provided a health insurance plan for the employee, they must allow the employee to continue with their health insurance coverage after termination for a period of up to 18 months. The employee should be informed about the right to continue with the health coverage. This is outlined by the requirements under COBRA (Consolidated Omnibus Budget Reconciliation Act).
Retirement or Pension Benefits
If the employee has a 401(k) or another retirement savings account, they must receive their funds when they leave the company. It is the obligation of the employer to make sure that any retirement benefits or pension contributions are handled correctly.
Stock Options
Some employees have stock options as part of their compensation. If this is the case, the employer is obligated to inform the employee about how these options will be handled after termination. In some cases, the stock options may be forfeited if the employee does not use them within a certain time period after termination.
Are There Any Exceptions?
Discrimination
Employers in California are prohibited by law from terminating an employee based on a protected characteristic, for example, race, age, or religion. Both federal and state laws protect these rights: Title VII of the Federal Civil Rights Act of 1964 and the state of California’s Fair Employment and Housing Act (FEHA). If an employee suspects they were fired because of discriminations, they may file a lawsuit or a complaint with the California Department of Fair Employer and Housing (DFEH) or with the federal government. Your lawyer can help you understand where and how best to file a complaint.
Retaliation
Employers may not terminate employees in retaliation for certain actions, such as for making a complaint about workplace harassment or unsafe working conditions. This also applies if an employee participates in an investigation into illegal workplace activities.
Whistleblower Protections
California also has laws protecting whistleblowers. An employee who reports on illegal actions within their company, such as violations of state or federal laws or fraud, may not be terminated without legal consequences for their employer.
Implied Contracts
If no formal written agreement exists between the employee and employer, but there is something in place that implies a work contract, then the employer may not be able to terminate an employee without notice. This may be the case if, for example, the employer has traditionally given employees notice before termination or if the company handbook specifies a certain process for termination.
Violation of Public Policy
Terminations that violate public policy are prohibited in California. As an example, an employee who exercises their legal rights such as taking time off for family leave under the Family and Medical Leave Act (FMLA), or taking time off for jury duty cannot be fired.
In What Situations Might an Employer Terminate Without Notice?
Serious Misconduct
If there has been theft, fraud, assault, or drug abuse by the employee, the employer may terminate without notice immediately. In cases of serious misconduct, the employee may not be entitled to severance pay or other benefits.
Insubordination
If an employee refuses to follow a reasonable and legal order from their employer, repeatedly disregards instructions, or behaves in a way that undermines the work of the employer, this is considered insubordination. An employer may consider that to be grounds for immediate dismissal.
Performance Issues
In general, performance problems are handled by discipline of the employee or through plans for improving performance. If an employee consistently performs poorly, however, then an employer may choose to terminate the employee without notice.
Breaches of Contract
An employee may have signed a contract which specifies a clear termination procedure. However, if the employee then violates the terms of the contract (for example, behaving in a way that violates the agreement), the employer may have the right to terminate that employee without notice, even if the contract specifies that notice be given.
Can an Employee Sue After Termination?
If you believe they were let go for reasons that were not legal, you have the right to file a lawsuit for wrongful termination. This starts by filing a claim with the state or the federal government, who will investigate and then issue a “right-to-sue” letter. An attorney can help with filing a lawsuit and a claim.
Consult with an Employment Lawyer in Los Angeles, California
If you have been let go for reasons that you believe are not legal, or if you are an employer who must deal with terminating an employee, it’s wise to reach out to an attorney who specializes in employment law. They can advise you about the laws that apply to your situation, and outline the legal options that are available to you.
Contact the experience team of attorneys of Haig B. Kazandjian Lawyers APC today. We proudly serve clients across California. Visit us at our Glendale office at:
Haig B. Kazandjian Lawyers APC
801 N. Brand Blvd., Suite 1015,
Glendale, CA 91203
Phone: (818) 696 2306
