California At-Will Employment: Your Rights in the Workplace

What is At-Will Employment?

At-will employment is a fundamental principle in California labor law that governs the relationship between employers and employees. In an at-will employment arrangement, either the employer or the employee can terminate the employment relationship at any time, with or without cause, and without the need for advance notice. This means that as an employee, you have the freedom to leave your job without providing a reason, and your employer has the right to let you go without justification.

Understanding the Flexibility of At-Will Employment

At-will employment provides both employers and employees with flexibility and freedom in managing their working relationship. Employers can make hiring and firing decisions without having to prove specific cause or meet stringent requirements for termination. On the other hand, employees have the freedom to seek new employment opportunities or leave a job that no longer meets their needs.

However, it is essential to note that at-will employment does not give employers unlimited power to terminate employees without consequences. There are exceptions and legal protections in place to prevent discriminatory or unfair termination practices. Understanding these exceptions is crucial to ensure that your rights as an employee are protected.

Exceptions to At-Will Employment

While at-will employment is the default standard in California, there are several exceptions that provide additional protection to employees. These exceptions include implied contracts, the covenant of good faith and fair dealing, and public policy considerations.

Implied Contracts

One significant exception to at-will employment is the existence of an implied contract between the employer and the employee. An implied contract is not explicitly written or verbalized but is inferred based on the actions and behavior of both parties. In employment cases, courts may find an implied contract if certain conditions are met.

To establish the presence of an implied contract, courts consider various factors, including:

• General personnel policies and practices of the employer
• Length of employment
• Assurances or promises made by the employer regarding job security
• Industry practices and standards

For example, if an employee has worked for a company for many years, received positive performance reviews, and the company’s policies indicate that termination should only occur for cause, an implied contract may be inferred. In such cases, employers must have a valid reason, or “good cause,” to terminate the employee.

Covenant of Good Faith and Fair Dealing

The covenant of good faith and fair dealing is another exception to at-will employment. This principle implies that both employers and employees have an obligation to act in good faith and deal fairly with each other. It prevents employers from engaging in actions that would intentionally harm an employee’s rights or benefits under their employment agreement.

Under the covenant of good faith and fair dealing, employers cannot terminate employees in bad faith, such as firing them to avoid paying earned benefits or without proper justification. Employees have the right to expect that their employer will act in good faith and treat them fairly throughout the employment relationship.

Public Policy

The public policy exception to at-will employment prohibits employers from terminating employees for reasons that violate public policy. If an employee is fired for engaging in activities that are in the public interest or protected by law, they may have a valid claim for wrongful termination.

Public policy exceptions can include situations where an employee:

• Refuses to violate the law on behalf of the employer
• Reports illegal activities or violations of the law within the company
• Takes time off for jury duty, military service, or other legally protected activities
• Files a workers’ compensation claim for a workplace injury

Employers cannot retaliate against employees for exercising their rights or acting in the best interest of the public. If an employee is terminated for any of these reasons, they may have grounds for a wrongful termination claim.

California Labor Code Section 2922

This section generally states that an employment relationship in California is presumed to be “at-will,” meaning either the employer or employee can terminate the relationship at any time, with or without cause, unless there is a specific contract or agreement stating otherwise.

New Labor and Employment Laws in California

California is constantly evolving its labor laws to provide better protections for workers. In recent years, several bills have been signed into law to enhance employee rights and safety. Here are some notable labor and employment laws that went into effect in 2023:

AB 1033: Expansion of CFRA Family Sick Leave

Assembly Bill 1033, also known as AB 1033, expands the policy for family sick leave under the California Family Rights Act (CFRA). Previously, employees were entitled to up to 12 weeks of job-protected leave each year to care for a family member with a serious medical condition. AB 1033 broadens the definition of family members to include parents-in-law, providing employees with additional flexibility to care for their loved ones.

SB 606: Broadening of Cal-OSHA Violation Citations

Senate Bill 606, or SB 606, addresses the staffing challenges faced by the California Division of Occupational Safety and Health (Cal-OSHA). With limited resources, Cal-OSHA inspectors were unable to visit all worksites with active safety violation complaints. SB 606 allows Cal-OSHA to issue “enterprise-wide” citations to companies that demonstrate a pattern of identical violations at multiple worksites, regardless of whether an inspector visited each site in person. This bill also requires inspectors to issue “egregious violation” citations for any employee who is hospitalized or sustains a fatal injury due to a violation.

AB 701: Warehouse Quota and Penalty Disclosure

Assembly Bill 701, or AB 701, aims to protect warehouse workers from exploitative production quotas and unfair work conditions. This bill requires warehousing companies, particularly those like Amazon, to clearly disclose their quotas and work speed metrics to employees and government agencies. It prohibits practices that interfere with meals, rest periods, bathroom breaks, or health and safety regulations. AB 701 also safeguards workers from retaliation after reporting unsafe quotas.

SB 639: Minimum Wage Adjustment for Disabled Workers

Senate Bill 639, or SB 639, addresses the issue of sub-minimum wages for disabled workers. Previously, employers with special licenses could legally pay disabled workers less than the federal minimum wage. SB 639 prohibits the issuance of new sub-minimum-wage licenses and will not renew existing licenses after 2024. This change ensures that disabled workers receive fair compensation for their labor.

SB 331: Restricts Certain Employee NDA/Nondisparagement Agreements

Senate Bill 331, or SB 331, expands the scope of restrictions on employee nondisclosure agreements (NDA) and nondisparagement agreements. Previously, California law prohibited employees who signed settlement agreements from disclosing facts about workplace sexual harassment allegations. SB 331 extends this prohibition to include all forms of harassment and discrimination. It requires covered severance, separation, or nondisparagement agreements to explicitly state that they do not prevent workers from discussing information related to illegal actions in the workplace. Additionally, workers must be given a minimum of five business days to consider such agreements before signing them.

AB 1003: Increases Wage Theft Punishment

Assembly Bill 1003, or AB 1003, strengthens penalties for employers who intentionally steal wages or gratuities from workers. If an employer commits wage theft amounting to over $950 for a single employee or over $2,350 from multiple workers during a consecutive twelve-month period, they can be charged with grand theft. AB 1003 increases the criminal penalties for wage theft and aims to deter employers from engaging in such practices.

These new labor and employment laws reflect California’s commitment to protecting workers’ rights and ensuring fair treatment in the workplace. Employers and employees should familiarize themselves with these changes to ensure compliance and understand their rights and obligations.

Frequently Asked Questions

Q: What does at-will employment mean in California?

At-will employment in California means that employers and employees have the right to terminate the employment relationship at any time, with or without cause or notice. However, there are exceptions to at-will employment, such as when termination violates public policy or breaches an implied contract.

Q: What is wrongful termination?

Wrongful termination refers to the illegal firing of an employee. It occurs when an employer terminates an employee in violation of employment laws or contracts. Wrongful termination can include termination based on discrimination, retaliation, or in violation of public policy.

Q: What are the new California labor laws?

Some of the new labor and employment laws in California include the expansion of family sick leave, broadening of Cal-OSHA violation citations, warehouse quota and penalty disclosure requirements, minimum wage adjustment for disabled workers, restrictions on certain employee NDA/nondisparagement agreements, and increased penalties for wage theft.

Q: What will California’s minimum wage be in 2023?

As of January 1, 2023, California’s minimum wage will be $15 per hour for employers with 26 or more employees and $14 per hour for employers with 25 or fewer employees. However, some cities in California may have their own local ordinances that set higher minimum wage standards.

Protecting Your Rights as a California Worker

Understanding your rights as an employee is essential to ensuring fair treatment in the workplace. If you believe your employer has violated your rights or engaged in wrongful termination, it is crucial to seek legal advice. Consult with an experienced employment law attorney to discuss your situation and explore your options for recourse. By staying informed and advocating for your rights, you can help create a more equitable and just work environment for all California workers.

Conclusion

Consulting a wrongful termination attorney will provide you with the necessary guidance and support to navigate the legal process effectively. Remember, time is of the essence, so seek legal advice promptly to maximize your chances of a successful outcome.

Call Setyan Law at (213)-618-3655 for a consultation.