employment at will in California is a provision under labor law that empowers employers to terminate an employment contract at will and without providing any reason. While this principle is largely adopted by many, it has also been largely abused. An employer’s right to terminate a contract at will does not permit terminations that are wrongful or based on unlawful reasons.
Here, we provide more details about employment at will and discuss some of the rights employees in California have under this arrangement.
What Is the Origin of Employment at Will?
The idea of employment at will is not a new concept, but one that goes as far back as the nineteenth century, with the need to promote economic freedom as its backbone. Furthermore, the earlier proponents of this concept saw it as a means to discourage long-term labor and create flexibility for parties to decide how long they want to work.
The principle of employment at will is largely recognized under California’s labor law, and employment without a fixed term is deemed to be one at will, allowing parties to disengage when they want to. As employment laws continue to evolve, more laws have developed to safeguard the core principles of employment at will while preventing its abuse.
What Are Notable Exceptions to the Employment At Will Principle In California?
While employment at will is presumed to be broad, it is not an absolute principle that allows employers or employees to act as they like. It has exceptions like:
- Dismissal in Violation of Public Policy
Employers cannot dismiss an employee for any reason that goes against public policy. This includes terminations based on an employee’s refusal to engage in illegal activity, reporting unlawful conduct (whistleblowing), serving on a jury, or exercising a legal right such as filing a workers’ compensation claim. For instance, if an employee is dismissed for reporting unsafe working conditions, the termination may be deemed unlawful.
- Termination Based On Discrimination Or Retaliation
Employees in California are barred from termination based on protected characteristics such as race, religion, gender, disability, age, or sexual orientation. Employers are also forbidden from retaliating against employees who assert their rights under labor or discrimination laws.
For example, firing someone for complaining about workplace harassment or for requesting a reasonable accommodation for a disability would violate state law. Such cases are considered wrongful terminations, even under an at-will framework.
- Implied Terms of the Contract
Although employers generally retain broad discretion to terminate employees, certain terms in the agreement may narrow this discretion. This exception occurs when the employer’s actions, policies, or statements imply that employees will be terminated only for good cause. Courts may find an implied contract based on long-term employment, consistent positive evaluations, or promises of job security made by supervisors.
- Covenant to Deal In Good Faith and Fairly
Employment at will contracts in California are presumed to come with a covenant that mandates parties to deal fairly and in good faith at all times. This means employers should not act in bad faith or use deceitful tactics to avoid their obligations. For example, firing an employee simply to deny them a pending commission or benefit may violate this principle.
- Written Employment Contracts and Collective Bargaining Agreements
Employees covered by written contracts or union agreements are generally not considered “at-will.” These agreements typically outline specific procedures and justifications required for termination. Violating such terms can expose the employer to legal liability.
The Need to Balance Flexibility with Fairness
There is no denying that the flexibility that employment at will offers can be exploited for personal gains. However, to prevent this and ensure there is a balance between the core principles that define employment at will and fairness, California has a strong legal framework that workers can always rely on.
The goal of this legal framework is to ensure that employers remain transparent and fair in their dealings. At the same time employees are informed both of their rights and responsibilities under their working terms.
Conclusion
“While employment at will offers a more flexible working arrangement between employers and their employees, it is not without its limits,” says Attorney Jacob Nalbandyan of LNN Law. This flexible arrangement is not one that should be leveraged for manipulation or exploitation at any point in the working process. If you feel your rights as an employee under an employment-at-will contract are being infringed, then you should speak to an employment attorney today.