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What are the required steps for terminating an employee in California?

In California, termination of an employee is based on both federal and state laws. The following are the required steps for terminating an employee in California:

  1. Documentation: Prior to termination, it is essential to document any performance, behavior, or misconduct issues that have arisen. This documentation should be clear, concise, and consistent, and include any warnings provided to the employee.
  2. Notice: California requires an employer to provide written notice of the employee's termination at least 72 hours in advance, or immediately when the termination is for a cause such as misconduct, theft, or violence. Providing notice to the employee will give them an opportunity to prepare themselves and to assess whether there are any wrongful termination claims.
  3. Final Paycheck: California law requires an employer to provide an employee with their final paycheck within 72 hours of termination. This includes payment for any earned but unused vacation time, commissions, or bonuses if applicable.
  4. Benefits: The employee must be notified of the termination's impact on their benefits, including medical insurance or COBRA rights.
  5. Return of Property: The employer should provide employees with a specific list of property they need to return upon termination, including keys, access cards, and company devices like laptops or mobile phones.
  6. Exit Interview: It's advisable to conduct an exit interview to gather information from the employee on their experience and feedback as well as to provide them with the necessary paperwork, including COBRA notices and unemployment information.

Exceptions to termination laws in California include, but not limited to, collective bargaining agreement, discrimination or retaliation laws, and protected categories like whistleblowers, injured workers or employees seeking medical or family leave.

Employers must follow these steps for compliant termination in California. These laws might change or have additional requirements that employers need to fulfill. Employers are encouraged to consult with legal counsel before terminating an employee.