Defending Wrongful Termination Claims in California – Best Practices for Employers

Farhad Novian | August 6, 2024 | Employment Law

Wrongful termination claims in California arise when an employee believes they have been fired in violation of state or federal laws. The implications for businesses facing wrongful termination allegations can be significant, including financial damages, legal fees, and damage to reputation.

California law provides robust protections for employees under the Wrongful Termination Statute of Limitations. As a business owner, you must be familiar with these laws to ensure you defend against wrongful termination claims effectively. 

If you are facing a wrongful termination claim, our expert employment lawyers can help you! At Novian & Novian, we offer extensive experience in defending employers against wrongful termination claims. Our team of dedicated wrongful termination employer defense lawyers in California can help you navigate these complex cases and protect your business interests. Contact us today. 

The purpose of this post is to provide businesses with a comprehensive understanding of wrongful termination claims in California, including the statute of limitations. We will also talk about the importance of legal defenses, and the role of experienced employment lawyers in navigating these complex legal issues. 

What Is a Wrongful Termination Claim?

Wrongful termination occurs when an employee is fired in violation of federal or state laws, employment contracts, or public policies. In California, wrongful termination claims can arise from discrimination, retaliation, breach of contract, or violation of public policy. 

California provides strong protections for employees. Therefore, it is essential for employers to understand the legal landscape to avoid and defend against such claims.

Defending a wrongful termination claim can be costly for employers as the cost of defending an employment lawsuit could easily exceed $125,000. This often includes attorney’s fees, court costs, and potential settlements or judgments. The exact amount would depend on the complexity of the case and the duration of the litigation process. 

Wrongful Termination Case Based on Discrimination

Wrongful termination cases based on discrimination involve allegations that an employee was fired due to the fact that they are part of a protected class such as race, gender, age, or national origin. In California, these cases are governed by both federal law, like Title VII of the Civil Rights Act, and state law, such as the California Fair Employment and Housing Act (FEHA). 

As an employer, you must demonstrate that the termination was based on legitimate business reasons unrelated to the employee’s protected characteristic. This includes showing proper documentation of performance issues and consistent application of company policies.

Wrongful Termination Case Based on Retaliation

Retaliation claims arise when an employee alleges they were terminated for engaging in legally protected activities. This could include whistleblowing, filing a discrimination complaint, or participating in an investigation. 

Employers must show that the termination was not connected to the protected activity but was instead due to performance or misconduct. The best way to defend against such a claim is to maintain clear, documented reasons for termination and have a robust anti-retaliation policy. 

Wrongful Termination Case Based on Breach of Contract

Breach of contract claims occurs when an employer terminates an employee in violation of an explicit or implied employment contract. This could involve failing to follow termination procedures outlined in the contract or dismissing an employee before the end of a contract term without cause. 

Employers can defend against these claims by demonstrating adherence to the contract terms or by providing evidence that the employee breached the contract first.

Wrongful Termination Case Based on Violation of Public Policy

Termination that violates public policy involves firing an employee for reasons that contravene established public policies. It could be refusing to commit an illegal act or exercising a statutory right. 

For such claims, employers need to provide evidence that the termination was for reasons unrelated to the public policy violation. As an employer, you must ensure that all terminations are based on clear, documented performance issues or business needs.

California Employment Laws

California operates under the at-will employment doctrine. This means that either the employer or the employee can terminate the employment relationship at any time, with or without cause, and with or without notice, as long as it isn’t illegal. 

California has several robust laws that provide stronger protections for employees. These laws include the California Fair Employment and Housing Act (FEHA), the California Labor Code, and the Whistleblower Protection Act. 

The California Fair Employment and Housing Act (FEHA) prohibits discrimination, harassment, and retaliation in employment. It obligates employers to provide a workplace free from harassment and discrimination. Furthermore, they must not retaliate against employees who assert their rights under FEHA. 

Likewise, the California Labor Code has wage and hour laws, retaliation protections, and health and safety guidelines to protect employees. The labor code mandates that employers must maintain a safe and healthy work environment and adhere to standards set by Cal/OSHA. 

In addition, the Whistleblower Protection Act protects employees who report illegal activities or violations of state or federal laws by their employers. Through this act, employers are prohibited from retaliation against employees who engage in protected whistleblowing activities. 

Defending Wrongful Termination Claims in California

As an employer, the best defense you can give against a wrongful termination claim is proving that the termination was for a legitimate business reason. For example, you can demonstrate that the employee was terminated due to documented performance issues. This includes poor job performance, consistent failure to meet job expectations, or repeated violations of company policies. 

Another helpful defense is to prove business restructuring. This restructuring could be downsizing or economic necessity. When using such a defense, you must show that the termination was part of a broader business strategy and not targeted at the employee for unlawful reasons.  

Importantly, employers should ensure that all terminations comply with established company policies and procedures. This includes following the steps outlined in the employee handbook and any relevant employment contracts. Consistent application of these policies helps demonstrate that the termination was justified and non-discriminatory.

In wrongful termination lawsuits, the burden of proof lies with the employee. Thus, employers can defend against claims by demonstrating a lack of compelling evidence that the termination was unlawful. This includes showing that there is no credible evidence of discrimination, retaliation, or violation of public policy.

Building a Strong Defense – What Is the Best Defense Against Wrongful Termination Claims?

The most important thing in defending wrongful termination lawsuits is documentation and record-keeping. This spans performance reviews, written warnings and disciplinary actions. 

As an employer, you must conduct regular performance reviews to evaluate and document an employee’s job performance. You should also make sure that the reviews are signed by both the manager and the employee to confirm acknowledgment. If there are situations where you have to carry out action against the employee, start with written warnings and ensure that all disciplinary actions are documented against the employee. The documentation should clearly state the reasons for the disciplinary actions, referencing specific incidents of employee misconduct or performance issues. It should also include dates, times, and witnesses to provide a detailed account of the events. 

Furthermore, employers must be consistent in enforcing policies to avoid allegations of discrimination or unfair treatment. Employers also have a duty to train managers and supervisors to ensure policies consistently and document any deviations or exceptions. 

Importantly, you should engage an experienced wrongful termination defense lawyer to help you navigate the complexities of employment law and provide guidance throughout the process. When you involve legal counsel early in the process, they help prevent potential legal issues and prepare for any possible wrongful termination claim filed by the terminated employee. 

Immediate Steps to Take When Dealing with a Wrongful Termination Claim

When faced with a wrongful termination claim in California, employers must act swiftly and strategically to protect their interests. Typically, what happens in a wrongful termination lawsuit is that the employee files a complaint in court. Depending on how the case goes, it could sometimes extend to court, and a verdict is given. 

As an employer, the first thing to do when faced with such a claim is to conduct an internal investigation. You can do this by interviewing supervisors, managers, and any other employee who may have relevant information. Then, clearly document your findings, including dates, times, and details of incidents related to the employee’s performance and termination. 

The next step would be to gather relevant documentation. You would have to collect all pertinent employment records, including the employee’s personnel file, performance reviews, disciplinary actions, and termination notices. It also helps to gather emails, memos, and other communications that pertain to the employee’s performance and the reasons for termination. Importantly, ensure that you have the most recent copies of the company policies and employee handbook that were in effect during the employee’s tenure. 

Moreover, you have to maintain a professional and respectful tone when communicating with the claimant. This can help manage the situation and potentially de-escalate tensions. During communication, acknowledge the receipt of the claim and inform the claimant that the company is conducting a thorough review of the matter. However, be cautious not to make any statements that could be construed as an admission of guilt or liability.

Next, prepare for mediation or settlement discussions. Working with your legal counsel, evaluate the merits of the claims and determine whether mediation or settlement discussions are appropriate. During this period, gather and organize all relevant evidence that supports your defense and be ready to present it during mediation or settlement discussions. It is best to consider the potential costs of litigation versus the benefits of settling the claim. This analysis can help guide your approach to mediation or settlement.

What Is the Role of an Employment Attorney in Wrongful Termination Claims?

When faced with a wrongful termination claim, engaging an experienced employment attorney can significantly impact the outcome. It is best to seek legal advice as soon as you become aware of a potential wrongful termination lawsuit. 

Ideally, you consult with an attorney before terminating an employee if you anticipate any risk of a wrongful termination case. This proactive approach can ensure that your actions comply with California law and that you have a solid defense strategy in place.

However, if a wrongful termination claim has already been filed, contact an employment attorney immediately. Timely legal advice is essential to responding appropriately and effectively to the allegations.

Typically, your employment attorney will help evaluate the case by considering factors such as employment contracts, company policies, and federal and state laws. The attorney will identify potential risks and liabilities, helping you understand the strengths and weaknesses of your case.

Furthermore, the attorney will help develop a defense strategy based on the case evaluation. This strategy will demonstrate legitimate business reasons for the termination and disprove the claimant’s allegations. 

A wrongful termination defense lawyer will also represent you in court during the trial. They will cross-examine witnesses, challenge the claimant’s evidence, and advocate on your behalf. If necessary, the attorney will handle post-trial actions, such as filing appeals or negotiating settlements.

Preventative Measures for Employers

To mitigate the risk of wrongful termination claims, employers in California should implement proactive measures such as implementing clear policies and procedures through a comprehensive employee handbook, as well as transparent termination procedures. 

Employers should also conduct regular training for management and employees. This could be performance management training or anti-discrimination and harassment training. 

In addition, you should conduct regular audits and reviews. This ensures that company policies and procedures are up-to-date and comply with current laws.

Need a Wrongful Termination Defense Attorney?

Wrongful termination occurs when an employee is fired in violation of federal or state laws, employment contracts, or company policies. Common reasons include discrimination, retaliation, breach of contract, and violation of public policy. It is best to seek legal advice at the first sign of a potential wrongful termination claim. Employment attorneys assist with case evaluation, defense strategy development, and representation in court, ensuring you are well-prepared and legally protected.

Taking proactive measures and maintaining strict legal compliance can reduce the risk of wrongful termination claims. By implementing clear policies, providing regular training, and conducting thorough audits, you create a fair and compliant workplace environment. This not only protects your organization from legal risks but also fosters a positive and productive work culture.

If you find yourself facing a wrongful termination claim, don’t hesitate to seek legal advice. An experienced wrongful termination defense attorney can provide the necessary guidance and representation to navigate this challenging situation.

For expert legal assistance and guidance on wrongful termination claims, Novian & Novian can help. We are a Los Angeles Employer Defense Practice, ready to protect your business and ensure your legal compliance. Contact us today!