Wrongful Termination in California: Missteps Employers Commonly Make and How Employees Can Respond

Losing a job can be one of the most stressful events a person experiences. For many employees, the shock of being fired is compounded by a lingering question: Was my termination legal? California is an “at-will” employment state, meaning most private sector employers have broad discretion to terminate employees with or without cause. However, that discretion is not unlimited. Both California and federal law prohibit employers from firing employees for unlawful reasons.

Wrongful termination claims often arise when an employer’s stated reason for firing an employee does not tell the whole story. In some cases, a termination that appears lawful on the surface is actually motivated by discrimination, retaliation, or another violation of public policy. Below, San Francisco employment lawyer Richard Koss describes instances where employers commonly make mistakes to help employees recognize when they may have legal rights and help employers avoid costly litigation.

What Is Wrongful Termination?

Wrongful termination occurs when an employee is fired for a reason that violates a statute, an employment contract, or a well-established public policy. While California’s at-will employment doctrine allows employers to terminate employees without providing a reason, it does not permit terminations that are discriminatory, retaliatory, or otherwise unlawful.

Examples of wrongful termination include firing an employee because of their race, sex, disability, age, religion, pregnancy, sexual orientation, or another protected characteristic. It also includes terminating an employee for reporting illegal conduct, requesting a reasonable accommodation, taking protected medical or family leave, serving on a jury, filing a workers’ compensation claim, or refusing to engage in unlawful activity.

Many wrongful termination lawsuits involve more than one legal theory. For example, an employee who is fired after requesting leave for a serious medical condition may have claims for disability discrimination, failure to accommodate, retaliation, interference with protected leave rights, and wrongful termination.

Common Employer Missteps That Lead to Wrongful Termination Claims

Many wrongful termination cases are not the result of a single dramatic event. Instead, they develop because employers fail to follow consistent policies, ignore legal obligations, or make decisions without considering how those decisions will appear when examined later.

Inconsistent Discipline

One of the most common mistakes employers make is applying workplace rules inconsistently. If one employee is terminated for conduct that other employees routinely engage in without consequence, the inconsistency may suggest that the stated reason for the termination is merely a pretext. Courts often look at whether similarly situated employees were treated differently when evaluating discrimination and retaliation claims.

Poor Documentation

Employers frequently rely on performance problems as the justification for termination. However, if personnel files contain years of positive evaluations followed by a sudden termination with little or no documentation of declining performance, that explanation may be questioned. Performance concerns should generally be documented as they arise, not created after a termination decision has already been made.

Ignoring Complaints

Another common mistake occurs when an employee reports harassment, discrimination, wage violations, or other unlawful conduct and is terminated shortly afterward. Even if the employer believes the termination is justified, close timing between a complaint and a discharge can support an inference of retaliation. Employers should carefully evaluate disciplinary decisions involving employees who have recently engaged in protected activity.

Mishandling Disability and Leave Requests

Employees who request accommodations under the Americans with Disabilities Act (ADA) or California’s Fair Employment and Housing Act (FEHA), or who take protected leave under the California Family Rights Act (CFRA) or the federal Family and Medical Leave Act (FMLA), are protected from retaliation. Employers that terminate employees without engaging in the required interactive process or before evaluating available accommodations may expose themselves to multiple legal claims.

Assuming “At-Will” Eliminates Legal Risk

Some employers mistakenly believe that an at-will disclaimer insulates them from liability. It does not. At-will employment simply means an employer does not need “good cause” to terminate employment. It does not allow termination for unlawful reasons. An employer that relies solely on an at-will policy while ignoring anti-discrimination and anti-retaliation laws risks significant legal exposure.

Warning Signs That a Termination May Be Unlawful

Not every termination violates the law, but certain circumstances may warrant closer examination. Employees should consider whether:

• They were fired shortly after reporting discrimination, harassment, wage violations, or unsafe working conditions.
• They had recently requested a disability accommodation, pregnancy accommodation, or protected leave.
• Their employer’s explanation for the termination has changed over time.
• Younger or similarly situated employees were treated more favorably.
• Their personnel file does not support the performance concerns cited by the employer.
• They were replaced by someone outside their protected class under suspicious circumstances.

Any one of these factors may not establish wrongful termination by itself, but together they can help demonstrate an unlawful motive.

What Employees Should Do After a Suspected Wrongful Termination

Employees who believe they were wrongfully terminated should act promptly. Waiting too long can make it more difficult to preserve evidence and may affect filing deadlines.

Important steps include:

• Request copies of personnel records when appropriate.
• Preserve emails, text messages, performance evaluations, and other employment documents.
• Create a timeline documenting significant events leading up to the termination.
• Identify coworkers who may have witnessed relevant conversations or disparate treatment.
• Avoid posting details about the dispute on social media.
• Contact an employment attorney for advice and an evaluation

Many employment claims require employees to file an administrative charge with the California Civil Rights Department (CRD) or the Equal Employment Opportunity Commission (EEOC) before filing a lawsuit. Other claims, such as certain wage and hour violations, may involve different procedures and deadlines. Speaking with an experienced employment attorney early in the process can help ensure important evidence is preserved and legal deadlines are met.

How Employers Can Reduce the Risk of Wrongful Termination Claims

Careful planning and consistent employment practices can significantly reduce the likelihood of litigation. Employers should consider the following best practices:

• Apply workplace policies consistently.
• Train supervisors on discrimination, retaliation, and leave laws.
• Document performance issues accurately and contemporaneously.
• Conduct thorough investigations before making termination decisions.
• Engage in the interactive process whenever disability accommodations may be required.
• Consult employment counsel before terminating employees who recently engaged in protected activity.

Thoughtful decision-making not only reduces legal risk but also promotes fairness and employee trust.

Wrongful Termination Claims Often Involve More Than One Violation

Wrongful termination cases rarely exist in isolation. Employees frequently discover that their termination was connected to broader workplace issues, including:

• Employment discrimination
• Workplace harassment
• Retaliation
• Failure to accommodate a disability
• Pregnancy discrimination
• Family and medical leave violations
• Wage and hour disputes
• Whistleblower retaliation

Because multiple laws may apply simultaneously, a careful legal evaluation is often necessary to identify all available claims.

Contact California Employment Lawyer Richard Koss Today

Although California follows the at-will employment doctrine, employers cannot terminate employees for reasons that violate state or federal law. Many wrongful termination claims arise because employers act hastily, fail to document legitimate business reasons, ignore employee complaints, or misunderstand their legal obligations under discrimination, retaliation, and leave laws.

For employees, recognizing the warning signs of an unlawful termination is the first step toward protecting their rights. For employers, understanding the common mistakes that lead to litigation can help create fairer workplace practices and reduce legal risk.

If you believe you were wrongfully terminated, or if you are a Bay Area employer seeking guidance on lawful termination decisions, San Francisco employment law attorney Richard Koss can help you understand your rights and responsibilities under California employment law. Contact us today.