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Wrongful termination in California: when “at-will” has limits.

An employer doesn't need a good reason to fire you — but it can't have a bad one.

By Lisa Noveck, Esq. · January 6, 2026 · Wrongful Termination

California's at-will employment doctrine often leads employees to believe they can be fired for any reason at any time. While employers do have broad discretion, at-will employment is not absolute. Wrongful termination occurs when an employee is fired for an unlawful reason—and these cases are far more common than many realize.

Understanding at-will employment

At-will employment means that either the employer or employee may end the employment relationship at any time, with or without notice. However, employers cannot terminate employees for reasons that violate federal or state law, public policy, or contractual obligations.

An employer does not need a good reason—but they cannot have a bad one.

Common grounds for wrongful termination

Wrongful termination often arises from:

Employers may attempt to conceal unlawful motives behind vague explanations such as "performance issues" or "restructuring," but courts look beyond labels to assess intent.

Discrimination-based termination

Termination based on race, gender, age, disability, pregnancy, sexual orientation, or other protected characteristics violates California's Fair Employment and Housing Act (FEHA). Discriminatory termination may be explicit or inferred through patterns of behavior, comparative treatment, or biased remarks.

Retaliatory termination

Termination following protected activity—such as filing a complaint or requesting accommodations—may constitute retaliation. Even if an employer cites performance issues, close timing and inconsistent enforcement of policies can expose unlawful motives. More on workplace retaliation →

Constructive discharge

Wrongful termination also includes constructive discharge, where working conditions become so intolerable that a reasonable person would feel forced to resign. Employers cannot escape liability by pushing employees out instead of formally firing them.

Evidence in wrongful termination cases

Key evidence may include:

Building a strong case often requires careful investigation and strategic presentation of facts.

Potential remedies

Employees who prevail in wrongful termination cases may recover:

Why legal guidance matters

Wrongful termination cases are complex and heavily fact-dependent. Early legal advice can help preserve evidence, assess claims, and avoid actions—such as signing severance agreements—that may waive rights. Why early advice matters →

Being an at-will employee does not mean surrendering your legal protections. When termination crosses legal boundaries, employees have the right to seek accountability and compensation.

Speak with LisaConfidential consultation with Employees First Labor Law. Call 310.853.3461.

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