Skip to content
All posts

What are the legal requirements for terminating an employee in California?

In California, the legal requirements for terminating an employee are primarily governed by state law, as well as federal laws such as the Family and Medical Leave Act (FMLA) and the Americans with Disabilities Act (ADA).

First and foremost, it is important to establish that California is an at-will employment state, which means that employers have the right to terminate an employee at any time, for any reason, as long as it doesn't violate any state or federal laws. However, some limitations do exist, and employers must follow specific procedures when terminating an employee to avoid potential legal liability.

For example, employers cannot terminate an employee based on protected characteristics such as race, gender, age, religion, national origin, disability, or sexual orientation. Employers also cannot retaliate against employees who report harassment, discrimination, or other illegal activities in the workplace.

In addition, California law requires employers to provide employees with notice of termination if they are laying off a large number of employees or closing a facility. Depending on the circumstances, this notice may have to be provided to employees at least 60 days in advance.

Employers are also required to pay all wages owed to an employee at the time of termination. This includes any accrued and unused vacation time, as well as any other forms of compensation that the employee is entitled to. If an employer fails to pay all wages owed, they may be subject to penalties and legal action.

To ensure compliance with these legal requirements and avoid potential legal issues, it is recommended that employers consult with a licensed attorney before terminating any employee. Employers should also document the reasons for the termination and be prepared to provide evidence in the event of legal action.